893.00/8–248: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received August 2—4:23 p. m.]
1409. Generalissimo informs me there is violent argument taking place regarding reorganization Kmt. Many favor Hu Shih’s26 suggestion that party be allowed to separate into its various cliques, thus bringing about normal and practical birth of different parties. Generalissimo, while seeming to favor such development, said opposition was so strong as probably to prevent it. There was determined and powerful advocacy of retaining Kuomintang as the one Chinese political party, all seeking protection as members of one powerful party, rather than taking a chance as independents.
Foreign Minister27 just returned from visit with Generalissimo at Mokanshan, informs me that final approval of drastic economic reform program impends and that, although he must maintain secrecy as to details for moment, he anticipates program can be published within next 10 days.