Foreign Relations of the United States: Diplomatic Papers, 1945, The Far East, China, Volume VII

893.00/6–1245

Memorandum of Conversations, by the Economic Adviser to the Embassy in China (Sumner)

[Washington,] June 12, 1945.

Participants:	Dr. Wong Wen-hao, Minister of Economic Affairs
	Mr. Kan Nai-Kuang, Deputy Secretary General, Supreme National Defense Council
	Mr. John D. Summer

On May 23rd I made a farewell call on Dr. Wong Wen-hao. While the principal subject of conversation had to do with economic matters, including the position taken by the recent Kuomintang Congress, Dr. Wong volunteered several comments on matters of political interest:

1. When I asked what Dr. Wong thought of the results of the Congress, he replied that two very important actions had been taken. The first called for a divorce of the Kuomintang Party and the Army. A second would require a similar divorce of the Party and education. While Dr. Wong appeared to feel that these two resolutions were of great significance, he went on to say that a counter-balancing move was the action of the Congress in calling for the taking over of the San Min Chu I Youth Corps by the Government. With this he expressed great dissatisfaction, stating that the Youth Corps had no place in the Government.

2. When I asked what he thought of the political situation, Dr. Wong replied that he had little hope for a negotiated settlement of the Communist issue. He volunteered the view that the main basis for optimism was the possibility of reform within the Chinese Government. Such a reform, said Dr. Wong, would give great encouragement to the people and might have the effect of materially weakening the position of the Communists. Dr. Wong expressed the hope that corrupt officials would be removed and that reasonably honest men would be appointed. Dr. Wong laughed and said in effect that the appointment of men “reasonably honest” by Chinese standards, while it would represent great improvement, was not asking for much.

On the previous day I talked with Mr. Kan Nai-Kuang, Deputy Secretary General of the Supreme National Defense Council. With no urging on my part he indicated that he saw no basis for a settlement of the Communist issue by negotiation. Rather, he spoke of confining the Communists to a restricted area, and to the prospect of civil war. Stating that he knew the Communist leaders and had worked with them in times past, he expressed utter distrust of them as well as of Russia.

With specific reference to the Kuomintang Congress, Mr. Kan complained of there having been present “too many young men”, who were not able to distinguish the practical from the impractical. He seemed particularly annoyed at the form of young men’s insistence upon land reform. He also stated that a resolution had been passed, calling on the government to “conduct” foreign trade after the war. This he had called to the attention of the Generalissimo, who agreed that such a position was impractical. The resolution was thereupon changed by striking out the word, “conduct”, and inserting the word, “promote”.

Dr. Wong, and particularly Mr. Kan, was inclined to belittle the significance of actions taken by the Congress as contrasted with statements of the Government.