Telegram from Ambassador Selden Chapin to Secretary of State Dean Acheson

INCOMING TELEGRAM Department of State E2 TELEGRAPH BRANCH 26-B-X 10/4/50 10 a.m. SECRET CORRECTED COPY Action Control: 813 FROM: The Hague Rec'd: October 3, 1950 5:54 p.m. Info SS TO: Secretary of State G P NO: 490, October 3, 6 p.m. EUR NEA UNA NIACT. OLI CIA Secretary-General Boon gave me today resume all recent DCR cables from Dutch Charge Peking bearing Korean situation. Explained while no date fixed therein this most recent information and based largely Panikkar's observation although checked by Dutch language officers with such sources as still available. Boon believed reports correct although inclined believe might be some bluffing. "(1) Chou En-lai said private conversation China would fight case 38th Parallel were crossed; when pointed out events UNO-Assembly and SC seemed indicate more favorable tendency towards China and event war with USA Chinese industrial resources and equipment especially Manchuria bound be completely destroyed, Chou En-lai insisted China had defended herself against 'further aggression' by USA; crossing 38th would be considered such. "(2) Chief of Staff Chinese Army private conversation made statement China no choice but fight if 38th Parallel crossed; although realized war with USA would set back China's development 50 years or more, Chief of Staff opinion if no resistance offered this time, China would forever be under American control. "(3) Furthermore learned from Peking, Nehru cable personal message Mao stating: (A) Great Britain, France and US decided New York 38th Parallel would not be crossed until after matter been discussed UNO. (B) India against cross- ing 38th Parallel by military forces. (c) India bringing much pressure as possible on UK prevent crossings". Boon said telegram appreciation foregoing information that moment in from Peking high points of which he translated allowing me take notes. Dutch Charge convinced Peking Government does not want war but there real danger in moment panic Chinese Communists might precipitate situation if our forces cross 38th and penetrate deeply REPRODUCTION OF THIS