893.00/7–2544: Telegram

The Ambassador in China (Gauss) to the Secretary of State

1288. Following information obtained in off-record conversation last evening with T. V. Soong. (Reference our 1205, July 12, 1 p.m.)

(1)
No progress being made in conversations with Communists.
(2)
On Sino-Soviet relations, President Chiang “may” wish Soong to go to Moscow but Soong feels that relations with Communists and serious internal situation in China should first be settled.
(3)
He reports Tai Chi-t’ao as saying that internal situation requires changes and he believes Generalissimo is gradually becoming convinced thereof.
(4)
Chinese garrison in Hengyang is gradually weakening and Chinese forces from outside have failed in attempt to break through Jap encirclement of that city which cannot hold out for more than a day or two.
Gauss