Foreign Relations of the United States, 1949, The Far East: China, Volume VIII

893.00/2–149

The Consul General at Hankow (Callanan) to the Secretary of State

Hankow, February 1, 1949—2 p. m.
[Received February 1—3:35 a. m.]

17. Pai will not sacrifice his Army defend Wuhan. Communists can take over any time they decide attack in force. Pai has denied separate peace (re Shanghai’s 290, January 28⁸⁶) but admits privately Huang commissioned [to] contact Li Chi-shen group. Pai also has representatives in Peiping but expects close cooperation with Li Tsung-jen (remytel 15, January 30⁸⁶).

Military movements across river to Wuchang now greatly accelerated. Local populace jittery due outbreak looting and absence police. Most stores closed as silver dollar at GY⁸⁷ 2,000.

Sent Department, repeated Nanking 17, Shanghai 13.

Callanan

86. Not printed.
86. Not printed.
87. Gold Yuan.