893.00/12–1449: Telegram

The Consul at Taipei (Edgar) to the Secretary of State

825. K. C. Wu came this morning directly from Generalissimo to say that after long night session Generalissimo had prevailed and obtained agreement to Wu governorship and provisos and wanted immediately announcement. Premier Yen remained neutral throughout. Wang Shih-chieh came over due to Wu’s “courageous stand”.

Wu now busily selecting new government. Plans replace C. K. Yen due latter’s unpopularity with Taiwanese with Jen Hsien-chuen. [Page 446] Generalissimo will make Yen National Minister of Economy. Wu considering all big Taiwanese names. Hopes have some influence on military through attendance at military conferences but doubts any early real reform there. Has asked Generalissimo remove General Peng.

Edgar