Telegram from Acting Secretary of State Joseph Grew to Ambassador Averell Harriman

NLT-372 for SEGRET DECLASSIFIED by autherity of E.R.1445 OP 29 JUNE 1945 s TOP SECRET VolVII P.909 ARCAIVERAND CINATIONAL PRIORITY Data: 17-73 3968 us RECORDE FROM: OPNAV TO : ALUSNA, MOSCOW 1015 JON 29 70 292011z, NCR NUMBER 307. TOP SECRET AND PERSONAL FROM THE ACTING SECRETARY OF STATE TO AMBASSADOR HARRIMAN. 1. The President has directed me to send you in reply to your 281015 the following message received today from Hurley: QUOTE. I have been in daily conferences with the Generalissimo, Soong and Tang since Soong's return. They have been kind enough to discuss frankly with me all matters pertaining to your White House message transmitting the Yalta agreement. China desires that agreement with Soviet will eventually become multilateral under the supervision of the United Nations. I am convinced that Soviet and China will be able to reach an agreement quickly. The two words in Yalta decision that are still causing most trouble are "preeminent" and "lease. China will endeavor to make terms agreeable to Soviet but under specific definitions rather than under general terms. China wishes to avoid the use of words that are in conflict with territorial integrity and in- dependent sovereignty but is agreeable to meeting the terms. UNQUOTE. 2. The present status of negotiations between Chiang's Government and the Communists, as reported by Hurley on 20 May, is as follows: QUOTE. We have succeeded in having the National Government recognize the Chinese Communist Armed Party as a political party by appointing a Chinese Com- munist as a delegate to represent the National Governnent at San Francisco. The Communists recognized the National Government by accepting the appointment. We - 1 -