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Dffice C o r r e s p o n d e n c e

Date jmy 22,1946.

Chairman Eccles

Suhjert! Section on China In International

Mr, Knapp ^

Statistical Bureau Foreign Letter of June
20, 1 % 6 .

With regard to the attached article on China, I imagine that your
main interest relates to the passages on T. V. Soongvs position and to the
report that General Wedemeyer "trill not press for a compromise with the Chinese
Communists as a prerequisite for a loan**
1* On the first point, Arthur Hersey has given me the following report:
•It is probably true that T» V. Soong has a large
personal fortune, but if he escapes in any way from fgovernment
control of his private fortune1, it is because of his position within the Chinese Government, not because of 'diplomatic
immunity1. It is probably also true that his influence in
the Chinese Government is precarious. He is probably not
strong with the fliberal intellectuals,f nor with the Generalissimo. Most important, however, he is distrusted by
the ultra-Chinese right wing in the Kuomintang because
of his foreign ways and use of foreign advisers* Els
position really rests on his ability, for ishich the dominant right wing has to tolerate him. Incidentally, it is
nonsense to say that the f right -wing ant i-Communist elementsf
are fprogressives who want an efficient new administration
and agrarian reforms* • The pressure for efficient administration comes from the public. The question of agrarian refora
is the outstanding issue between the Chinese Communists and
the Kuomintang, next to the question of who is to hold power
and patronage.19
2. On the second point, the article is clearly wrong. The new
American Ambassador to China is Dr. J. Leighton Stuart, President of
Yenching University, and not General Wedemeyer. It is reported that
Dr. Stuart was named at the suggestion of General Marshall and it is assume that he will pursue General Marshallfs policies
even if the General returns to this country, from newspaper reports
it would appear that General Marshall1 a mission is on the point of
failure and that extensive civil war in China is imminent. Under such
circumstances there is certainly no chance of the loan going through,
at least until the National Advisory Council has fully reconsidered
the position of the loan to China.



F» R.

5 1 1


Mr, Knapp


Miss B e n t on



The Chairman w o u l d l i k e t o h a v e y o u

read the portion of the attached on
China. He is interested in knowing
whether or not there is anything to this
report. He would be glad to have any
information you can get froin the State
Department or others regarding i t .


This file contained a copyright-protected publication that has been removed.
The citation for the original is:
International Statistical Bureau. Foreign Letter, June 20, 1946, Vol. XII, No. 12, pp. 1-4.