893.00/2–2449: Telegram

The Minister-Counselor of Embassy in China (Clark) to the Secretary of State

Cantel 78. In contrast to Li Tsung-jen, whom I found exuding confidence and giving an impression of action (mytel 70, repeated Nanking 67, Shanghai 40, February 22), I found Sun Fo today disheartened and I suspect disgruntled by trend of events. Li seems to have accomplished much by his visit Canton. Sun Fo did not want go Nanking yet he was maneuvered into position where promise to do so was extracted from him and now against his better judgment he is afraid he is going to have to go north.

Sun could not confirm press reports quoting Li as saying that peace negotiations would be deemed to have failed if Communists attempted crossing Yangtze and said with some bitterness that there was still no agreement within Government circles on “acceptable” terms of peace. Li Tsung-jen had been thinking, he said, first, of a territorial arrangement, leaving Communists in control of areas they occupy, with an agreement to cease fighting; or, secondly, although Sun said it was too early for this phase, federation of the various regions, including those occupied by Communists. There had been no agreement with Li on this subject, however, so the Government was not in a position to negotiate even if Communists were willing. He said visit of Shao Li-tse to Shihchiachuang to see Mao Tse-tung had been postponed and Shao might likely return Nanking next few days. Wu Tieh-cheng had left [for] Nanking today and he, Sun, might himself be leaving in few days. With considerable embarrassment, Sun Fo admitted [Page 150] he liad authorized member his Cabinet, through mutual friend, to approach Communists Hong Kong regarding peace proposal (mytel 64, repeated Nanking 61, Shanghai 36, February 1970). He insisted, however, that initiative was not his and that he was not sanguine of success of approach through Hong Kong.

If he should go to Nanking (in each case he used the conditional when speaking of Nanking), he would plan devote most of his time to military reform. Hsu Kan, Finance Minister, had spent hours, he said, trying to persuade military leaders to reduce standing army below present 5,000,000. Best he could obtain was agreement on 4,200,000. Dr. Sun thought this figure much too high and insisted army would be much more efficient if reduced to 2,700,000 or 3,000,000 and streamlined. Under financial reforms which Hsu Kan would announce today, it should be possible to pay 3,000,000 soldiers, say, 10 silver dollars monthly, and with silver in their pockets and improved training, Sun thought will to fight could be revived. He had discussed this with Ho Ying-chin and he had agreed to come back into government as National Defense Minister at appropriate time.

Dr. Sun still does not admit defeat in respect of Legislative Yuan although he admitted likelihood success efforts President Tung Kwan-hsien to hold first meetings Nanking, the Legislative Yuan itself then voting to move later to Canton. Nanking, he said, being under constant threat, was no place to meet and it was highly possible, there might still be rival meeting Canton organized by legislators from southwest and Taiwan who supported Kwangtung members desiring meeting here. He spoke with feeling on the subject and with obvious resentment over developments.

Sent Department, repeated Nanking 74, Shanghai 47.

Clark
  1. Not printed.