Marshall Mission Files, Lot 54–D270

Minutes of Conference Between General Marshall and Mr. Percy Chen88 at No. 5 Ning Hai Road, Nanking, August 23, 1946, 10:30 a.m.

Also present: Capt. Soong

Mister Chen expressed his optimism in the present situation and said that General Marshall will eventually have the present problem solved.

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General Marshall stated that the present problem could have been solved much easier two months ago and that the longer the delay the more complicated the problem became.

General Marshall said that the Generalissimo told him in February that there were no liberals in the Communist Party. General Marshall disagreed. Today those liberal elements in the Communist Party are losing control and the radicals are becoming the leaders.

General Marshall inquired of Mister Chen how much of the Communist mobilization order is threat and bluff and how much of it is actual preparation. To this, Mister Chen made no reply. General Marshall continued to say that it was probably part of Communist overall policy and added that when such propaganda spreads among the lower echelons within the Communist Party, it might be very difficult to control. General Marshall commented that the greatest weakness on both sides is lack of appreciation of the fear on the other side. If such fear could be dispensed with, then the problem could be more easily settled.

General Marshall then said that he was now trying to start a State Council. Through this Council the Chinese would have their own instrument of discussion and they could not complain further that they had no opportunity to discuss. General Marshall further stated that the only chance for the Kuomintang Government to survive is to prove that it is a better government.

Mr. Chen concurred that to tackle the present problem by organizing a State Council is the right procedure. He believed that this procedure would bring results. He further stated that the reorganization of the army would not be possible unless the Communist Party could be given political assurance. Mr. Chen then inquired if General Marshall had had an opportunity to explore the liberal movements in China. To this General Marshall replied that he had had discussions with a great many individuals, including Democratic Leaguers, Young China Party members, non-party members and various individuals. General Marshall further stated that he would see anyone who asked to see him.

Mr. Chen stated he learned that Dr. Sun Fo89 had not participated in the present negotiation. Dr. Sun conceived the idea of the presently suggested State Council. It seemed to Mr. Chen that a man like Dr. Sun would be of great value to General Marshall at this dangerous moment. Dr. Sun has a good reputation among the labor and financial circles in the U. S., and he has a good background and is worthy, in his own right, to participate in the negotiation.

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China started the war against Japan with the promise of help from Russia and Dr. Sun Fo was the man who went to Moscow to arrange such help with Mr. Stalin.90 Consequently, Dr. Sun also gained the confidence of the Russians. Although the British are becoming less interested in the Orient, Mr. Chen was sure that they have an equal confidence in Dr. Sun. In China, all the liberals feel that Dr. Sun is the only person they would support and follow. Among the moderates of both the Kuomintang and the Communist Party, Dr. Sun also commands high respect. From all points of view, Dr. Sun has a wide knowledge of the current situation in China to enable him to appreciate the fear on each side which is so frequently mentioned by General Marshall.

Mister Chen further stated that it is Dr. Sun’s belief that the situation today has grown too large for the U. S. alone to handle as mediator and to guarantee fair dealing for either the Kuomintang or the Communist Party any longer. He (Dr. Sun) directly favored some sort of participation with the Russians—by ideological contact which he thinks is fundamental. Before the situation in China becomes dangerous to the world, is the time to take up the matter with Russia and find out just what they want in China. Dr. Sun suggested that Russia be brought in to mediate the situation. In this way, it would give both the Kuomintang and the Communist Party a feeling of a certain amount of assurance.

  1. Son of the late Eugene Chen, Chinese Minister for Foreign Affairs for last time in December 1931–January 1932.
  2. Son of Sun Yat-sen and President of the Chinese Legislative Yuan.
  3. Iosif Vissarionovich Stalin, Chairman of the Council of Ministers of the Soviet Union.