893.00/14123: Telegram

The Counselor of Embassy in China (Peck) to the Secretary of State

229. Our 186, April 30, 9 a.m.

1.
There are reports current that progress in the negotiations between the National Government and the Communists in the northwest have progressed to a point where reorganization of the Red troops into the national forces has commenced and that they have been placed under the superior or supervising command of Ku Chu Tung, director of the Generalissimo’s Sian Field headquarters, with their own officers continuing in immediate command. Commenting on one point of the National Government, Vice Minister cited in the telegram under reference stated last evening to an officer of the Embassy that while the Government hoped to accomplish this step such hope had not yet been realized.
2.
The Tientsin North China Star published May 27 a news story dated at Yenan, Shensi, the Red “capital”, which quoted a message said to have been sent by Chu Teh, “commander-in-chief of the Chinese People’s anti-Japanese Red Army” to the Spanish people, which is of interest in connection with the northwestern Communists’ reputed agreement with the Government that they will cease styling themselves Communists and will forego the class struggle and as an indication of a general reformation of Communist policy to submerge their communistic air in supporting democractic bourgeoisie movements opposing fascism. Paid tribute to the struggle of the Spanish “comrades” against “German and Italian fascists and Spanish insurgents”; (2) stated that (a) the Red army had grown up from workers and peasants “under the leadership” of the Chinese Communist Party, (b) after a 10-year struggle against “international imperialism and international counter revolutionary forces” had proposed to all parties and groups in China a new policy of a national united front against Japan, thus bringing about the end of China’s “20-year civil war”; (3) concluded rhetorically that “your front and our front is one, we [Page 108] have the same enemy, fight German and Italian fascism in the West and we fight Japanese fascism and militarism in the East”.
3.
The source of this news report is unknown but is presumed to be Earl Leaf, American correspondent at Tientsin of the United Press who recently visited Yenan and published through the United Press a series of articles concerning the Communist régime in North China and the negotiations with the Government looking to a reconciliation. Japanese press dispatch May 16 accused Tass of utilizing the United Press in this connection for anti-Japanese propaganda, stated that the correspondent’s sojourn in Yenan could not have been possible without the assistance of the Soviet Union and went on to say that it is an open secret that when Chiang Kai-shek was detained at Sian a certain Communist leader (Chou En Lai) suddenly appeared and saved Chiang “from the Judas grip of the Sian rebels,” pleading with the latter that this was not the time for internal quarrels in China but now for a united front against Japan. The Japanese press despatch in question has been rendering conclusions from the circumstances which it cited.
4.
Sent to the Department, by mail to Peiping, Tokyo, Moscow.
Peck