Source 3c

Transcript

This telegram is of particular secrecy and should be retained by the authorised recipient and not passed on,

[CYPHER]

CABINET DISTRIBUTION.

FROM CHUNGKING TO FOREIGN OFFICE.

Sir H. Seymour.                                                          D. 4.16pm 31^st October 1945

No. 1381                                                                     R. 5.10pm 31^st October 1945

Repeated to SACSEA (for Mr. DEning)

Commander in Chief Hong Kong.

My telegram No. 454 to Government of India.

Mutual recriminations between Communist and Central Government propagandists continue in press for example in press interview at Chungking October 27th Sanshi Government Yen Hsi Shan alleged that Communist forces had attacked and seized several towns in Shansi shortly after they had been captured from Communists by Central Government troops who had maintained defensive but never offensive attitude towards the Communists.

2. At Press Conference of October 27th Minister of Information stated that with the object of restoring the railway Central Chinese Government had agreed with Communist representatives that “status quo Communist forces in Canton railway zones will be maintained provided Communists would leave railways alone.”
3. He added they had urged Communists to send representatives of 18^th Group Army to Chungking to form sub committee to discuss that Army’s re-organisation and operation area in fulfilment of recent agreement. He added that general agreement had been reached regarding holding of political Consultative Council. Communist representatives had referred the above issues to the Yenan.
4. Wu claimed that discussions with Communists were continuing in cordial atmosphere and that there was no need for him to comment in detail on improper reports now circulating, as they are at variance with the facts.