Telegram from John Leighton Stuart to Secrertary of State George C. Marshall

INCOMING TELEGRAM DEPARTMENT OF STATE-DIVISION OF COMMUNICATIONS AND RECORDS TELEGRAPH BRANCH 5-X N Action: FE Control 7273 Info: SS Rec'd December 21, 1948 C 8:11 p.m. UNA OLI FROM: Nanking THSMAN CIA AAN TO: Secretary of State EURX ARCHIVES RECORDS SERVICE" NATIONAL AND = DCR NO: 2585, December 20, 5 p.m. LOG Cabinet situation remains confused. Even many of Generalissimo's closest friends are convinced that he must go in order that there may be peace. His sole staunch supporter in continued resistance appears to be Hu Shih, who, equally with Generalissimo, is con- vinced that sole honorable way is to continue resistance against Communism and his hand is strengthened by re- portedly reassuring messages Generalissimo is receiving ?rom Madame. Otherwise those surrounding Generalissimo, including of late even Chang Chun, feel continuation present in- effective policy directed by Generalissimo will be disastrous; that some change is needed; that effort to negotiate peace is best policy, but no one of them either singly or collectively dares face Generalissimo with demand for his retirement, thus permitting some such arrangement. Group headed by Chang Chun, but including Chang Chih- chung, Wu Tieh-oheng, Shao Li-tze, Wang Chun-hui and Chen Li-fu, are holding off from joining Sun Fo Cabinet until assured Generalissimo will relinquish his full powers. Failing this they are considering recommending Generalissimo that China appeal other members Big Five in UN to arbitrate China conflict and to act as pro- tectors of any agreements reached, They feel need for peaceful solution, yet fear lack of good faith part Com- munists should agreement be possible. Fearing repati- tion Eastern Europe, their aim is territorial arrange- ment. DECLASSIFIED E. O. 11652, Sec. 3(E) and 5(D) ar (E) Meanwhile, OSD letter, April 12, 1974 2:15-71 By NLT- HC NARS Date 9-13-76 INFORMATION COPY