Word: kai-shek
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Before the bell, there was an anxious wait for 1) the payoff on a major U.S. gamble that Red China would turn down the U.N. invitation to discuss ceasefire, and 2) agreement between the U.S. and Generalissimo Chiang Kai-shek on defense of the offshore islands...
Spiked Spearhead. Meanwhile, the U.S. had diplomatic difficulties of its own in the form of a thorny negotiation with Chiang Kai-shek over the evacuation of the Tachen Islands. Last September the U.S. decided that the islands of Quemoy and Matsu were not militarily vital to the defense of Formosa. Later, as a condition to giving up the Tachens, Chiang demanded a public U.S. promise to defend Quemoy and Matsu. Politically, this was a reasonable condition, for with the Tachens gone, the other islands, as well as having tactical value, would become a test in the minds of free Asians...
...gross interference of the U.S. in the internal affairs of China," Molotov said he would consider it. (Molotov was more expansive later when visiting Publisher William Randolph Hearst Jr. asked if there might be a local cease-fire to permit the bloodless evacuation of the Tachens. "If Chiang Kai-shek should desire to withdraw his forces from any islands, hardly anyone would try to prevent him from doing so," said Molotov dryly...
...interest in U.N. intervention, he had rushed to confer with the U.S. and New Zealand. As a temporary member of the Security Council, New Zealand was nominated to take the lead. Among them, they agreed that the cease-fire proposal should be limited to the outlying islands; if Chiang Kai-shek and Chou En-lai got to arguing about Formosa, there would be no hope of agreement on anything...
...Eden's plan: to yield the offshore islands, including Quemoy, to the Communists in exchange for a promise to let Formosa alone. "What we want is 75 miles of blue water between the two contending parties," said one. Then, with boundaries tidied up and hostilities in abeyance, Chiang Kai-shek could be recognized as sovereign in Formosa, Mao Tse-tung in continental China, and both accorded recognition and eventual acceptance into the U.N. Assembly. This week, Russia announced guarded acceptance of a cease-fire but stated its own opening terms: the U.N. must order all U.S. forces...