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General George Marshall's sharp eye saw a chance for Chinese peace. Chiang Kai-shek was willing to halt his armies in Manchuria for seven days; Communist Negotiator Chou En-lai wanted a one-month armistice. Marshall asked shrewd Dr. Lo Lung-chi, head of the pink-tinged Democratic League, to help him work out a compromise. Together they led the rival leaders to a middle ground: a 15-day truce in Manchuria...

Author: /time Magazine | Title: Foreign News: Breathing Spell | 6/17/1946 | See Source »

...usual, the Communists scored a news beat; Chou announced the agreement at an American Embassy cocktail party. Next day Chiang gave it substance by ordering his generals to hold "all advances, attacks and pursuits." Chiang took another step toward conciliation. He proposed that Marshall be empowered to act as supreme arbiter in all Communist-Nationalist disputes. Chou hedged: "We've trusted Marshall, but to trust him and to give him arbitrary power are two different things." In Marshall's personal plane Chou took the proposal to Yenan where Communist Boss Mao Tse-tung was deciding whether...

Author: /time Magazine | Title: Foreign News: Breathing Spell | 6/17/1946 | See Source »

Nephew Leo's financial theories were simpler: create U.S. gold dollars (out of circulation since 1933), British sovereigns and French napoleons and sell them to greedy, panicky black-market speculators. He explained: "The real brain of our association was a Greek, Georges Chou-naris [later arrested] . . . a true artist, a sort of alchemist of the Middle Ages. He combined antimony and lead, then moulded the metal and gold-plated it. Production costs were negligible. In eight months we grossed 100 million francs...

Author: /time Magazine | Title: Foreign News: Piker's Nephew | 5/20/1946 | See Source »

...revise upward the 1-to-5 ratio of Red troops to Government troops in Manchuria, agreed upon last February. Marshall was furious with Lo for telling the press that Marshall had said he would guarantee an agreement in 24 hours if the Communists would clearly state their demands. Chou, who hopes to keep the situation as fluid as possible, was equally furious because loquacious Lo had revealed a specific Red demand...

Author: /time Magazine | Title: CHINA: Sliding Scale | 5/6/1946 | See Source »

...Chou then said: "At the time we signed the [February] agreement we did it with the view that we had made a large concession to secure peace. This failed, and the situation in Manchuria has undergone much change." The change had been brought about by Chou's party, which continued to send troops into Manchuria, continued to pick up roving partisans in the area. Now Chou, having broken the February agreement, was demanding a higher price for a new agreement...

Author: /time Magazine | Title: CHINA: Sliding Scale | 5/6/1946 | See Source »

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