893.9111RR/3–449: Telegram

The Consul General at Shanghai (Cabot) to the Secretary of State

[Extract]

742. Shanghai press summary March 4. Sun Fo’s statement yesterday that peace talks will be held after March 15 is top news. Li Tsung-jen appointed a 10-man committee to draft a peace formula, and Government will talk peace with Communists on equal footing. Both sides will appoint equal number of delegates, but number of delegates is not yet decided and delegates have yet to be named.

Sun Fo also announced that Government was trying to implement following reforms: Discontinue conscription, reduce size of army, stop food requisitioning, define governmental powers of central and local governments and institute land reform. He emphatically stated that press office and Executive Yuan are unanimous in opinions regarding peace.

Regarding UN mediation in China’s internal disputes, Sun explained that war in China is a civil war, not an international war, and it is not function of UN to intervene other nations’ affairs. Since the Communists oppose UN mediation and since they have agreed to start peace talks, the Government will negotiate directly with Communists.

Members of 10-man committee working on a peace formula agreed on following points: Constitution may be revised according to former PCC agreement. “War criminal” issue should be reconsidered by Communists. If necessary, National Assembly and Legislative Yuan may be dissolved. Reorganization of army should be carried out on equitable and rational basis.

[Page 163]

Ta Kung Pao and Sin Wen Pao report Gen. Chang Chi-chung left Nanking yesterday for a “certain place” and will stay there for few days.

Premier Sun entertained Legislative Yuan members yesterday and asked their support. Legislative Yuan members in Nanking met yesterday and discussed problems of political reform. Most of them expressed dissatisfaction with Sun Cabinet.

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Cabot