Memorandum from Secretary of State Edward Stettinius to President Harry S. Truman

DESLASSIFIED E.O. 11652, Sec. 3(E) and 5(D) or (E) Dept. of State letter, Aug. 10. 1972 By NLT-HL NARS Date 6.24.75 THE SECRETARY OF STATE WASHINGTON April 19, 1945 MEMORANDUM FOR THE PRESIDENT SUBJECT: Dr. T. V. Soong's Call. Dr. Soong is Acting President of the Executive Yuan (corresponding to a Cabinet) and concurrently Foreign Minister. He is brother-in-lav to the Generalissimo and to Dr. H. H. Kung. He is a progressive and very influential figure in the Chinese Government. It is anticipated that he will wish to discuss China's present political situation and its economic and financial difficulties occasioned by the strain of war and serious inflation. Of primary importance in the political situation is the failure of the National Government, controlled by the Kuomintang (Nationalist Party through which the Government came into being) to reach a settlement with the Chinese Communists. Each side blames the other for the failure. Neither side, we feel, is making a sincere effort to reconcile their political differences. The position of the Kuomintang is weakened by inefficiency and corruption in the Government. The position of the Communists is open to criticism because of their maintenance of a semi-independent Army and political organization in north China. The Kuomintang-Communist issue is SO delicate that you may not care to discuss it with Dr. Soong at this time. With regard to the economic situation, Soong, it is understood, is anxious to obtain from the Treasury Department agreement to an increased shipment of gold to China. The Treasury Department has been following this matter closely, but it is understood to entertain misgivings with regard to the Chinese Government's handling of the gold sales. Dr. Soong is also concerned with increasing the flow of consumer ARCHIVES AND "NATIONAL RECOADS of SERVICE