793.00/4–2051
Memorandum of Conversation, by the Deputy Assistant Secretary of State for Far Eastern Affairs (Merchant)
| Participants: | Dr. Han Lih Wu |
| Mr. Livingston T. Merchant, Deputy Assistant Secretary for Far Eastern Affairs |
Dr. Han returned to see me by appointment today. He hopes to return to Washington in a week or ten days in order to see Mr. Rusk, [Page 1642] who he told me had said to him at their last brief meeting that he wished to discuss the “third force”. Dr. Han then launched into a discussion of the “third force”, arguing that the individuals considered to comprise it lacked arms, money and political power. Dr. Han went on to say that the Generalissimo must be the rallying point for resistance to Communism in China.
Making the point that I was speaking frankly and informally, I told Dr. Han I agreed a resistance force to be effective must have, among other things, material power and if possible the mantle of legality. Nevertheless I said I had seen with my own eyes in China the extent to which patriotic anti-Communist Chinese had been alienated from the Generalissimo by the actions of his government I said that what seemed to me to be required was a widening of the base of the appeal of the National Government and the development of a liberal program which would attract to it increased support. I said that it fell upon him and other younger leaders like himself to insure that the Generalissimo and the little group around him realized that as now constituted they could not be a standard to which all anti-Communists would flock.
I went on to say that I also thought it was important that there should be no misapprehension as to the meaning of General MacArthur’s relief or the political debate in which this country was now engaged. I said that the President had stated that no change in this Government’s policy was involved or contemplated and that this certainly comprehended our policy with respect to Formosa.
I went on to say that I thought it was also important that there should be no delusion on Formosa as to either our ability or willingness to underwrite their deficits. I said that if Congress approved the projected plans there would be next year a program of military assistance to Formosa to increase their capacity for self defense. I said, however, that this program would bring in its wake economic burdens and that while we would continue economic assistance through ECA, the problem of adjustments of a more stringent administration of their tax laws, of an improvement in their exports, and other measures involving an austerity scale of expenditures would have to be undertaken by the Chinese Government.
Finally, I referred to newspaper reports in this country that records of their secret police allegedly reporting all movements and actions of U.S. Government officials in China in recent years had apparently been turned over or made available to individuals or groups in this country. I said that deep and friendly as my own feelings toward China were, I thought he would understand me when I said that such actions to me were revolting and not designed to improve our relations. [Page 1643] Dr. Han expressed ignorance and amazement, and indignation at the latter point.
Before leaving he recapitulated the other points which I had made and reassured me that he regarded this as a “private” conversation.