893.00/1–2649: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received January 27—12:25 a. m.]
221. Communist radio January 25 broadcast reply Government proposal send delegation to negotiate peace. Communists accepted proposal, but hedged acceptance with conditions leaving Government no scope for bargaining. Communist spokesman stated “Government long ago unable represent people of China. Only Democratic Coalition Government to be created by new political consultative conference, which will soon be convened without participation reactionary elements, can be qualified represent people China. Therefore, our permitting reactionary Kmt Government send representatives negotiate is not recognition any qualification that Government represent people of China, but because that Government still has in its hands portion military force”. Spokesman then said Government must realize its retaining [remaining?] military forces inferior to those of Communists, said Government must accept Mao Tse-tung’s eight conditions and pointed to Peiping settlement as model which negotiations should follow.
From above, it would appear to us that Communists have coldly reaffirmed their decision to reject Government’s attempt enter new coalition as intact bloc and that they will decide which members Kmt, if any, acceptable to new regime as individuals. It also appears clear that Communists are demanding surrender remaining Kmt armies in order that they may be “nationalized”. It has been Li Tsung-jen’s intention negotiate peace only if Communists willing offer equitable terms. In light this broadcast it would seem that Li has to choose between complete capitulation and continued resistance. We believe that he will choose latter course, basing his resistance in South and Southwest China.