893.00/7–1448: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received July 14—10:43 a. m.]
1286. Hong Kong ConGen reports following July 12 conversation between C. Y. Li of KmtRC and officer of consulate. Li Tsung-jen has given definite assurances desire full cooperation with KmtRC and written agreement will follow shortly. KmtRC will obtain release of its three key men Nanking referred to in ourtel 1263, July 12 without assistance. Dependent on their escape, KmtRC confident ability coordinate its plans with those of Li Tsung-jen and anticipates move will probably be made prior to July 18. KmtRC leaders will depart Hong Kong by four-engine aircraft for unspecified interior China point. Communists exerting pressure Marshal Li immediately convoke PCC in their areas which he refuses. Marshal Li invites Vice Consul Service accompany his party to interior as observer.
In Embtel 1264 of July 12 we give our reasons for belief Li Tsung-jen and Fu Tso-yi possibly now conferring over formation political alliance and cessation civil war and have on several occasions informed the Department of our belief in KmtRC expressed intentions make overt move in near future to reestablish provisional government. We consider KmtRC statement of understanding with Vice President entirely possible. Each group has as major aim formation new government and elimination Gimo and doubtless each feels this aim more easily encompassed through united action. At moment we have no information which would indicate precise nature of cooperation between two groups and would regard their “understanding” as possibly only agreement to take parallel but independent action.
[Page 358]Maximum aim of KmtRC has been to replace Gimo with coalition government headed by Marshal Li, this new government resulting from PCC over which Marshal Li presides. While Marshal Li undoubtedly has much popular support, the degree of his organized support in terms adherence of leaders with significant political and military followings is unknown and possibly small. However, he has assiduously cultivated Communists with view of establishing himself in role of potential mediator. If able assume this role he would undoubtedly exercise much influence in any PCC and resultant government and might well be able to maneuver other regional political groups into position where they would have to cooperate with him.
Sent Department; pouched Consulate[s], China.