Irreconcilable

CHINA

From Burma, TIME Correspondent Theodore H. White.cabled important news:

"The Communists are now considering setting up an independent organization in North China, to be styled United Committee of Democratic China or some name of similar character. If this is done, it means that henceforth there will be two open claimants of Chinese sovereignty: Chiang Kai-shek's Government, recognized by the outside world, and a Communist state, governing 80 million people and controlling an army of 600,000. Settlement of China's internal differences by peaceful means would become highly unlikely.

"Negotiations between Chungking and Yenan have arrived at a complete breakdown. Despite the earnest exhortations of American diplomacy, no basis for agreement was found possible and the two groups are now held irreconcilable."

But in Chungking last week the key man in eight months of stormy negotiations still held open the door. Said Generalissimo Chiang Kaishek:

"The Chinese people generally are tolerant with regard to the Communist question. The Government's policy to employ political means to secure a peaceful settlement has been consistent. The policy will eventually succeed because it is in line with the good sense of the people." There will be no civil war in China, the Generalissimo added, so long as he is that nation's leader.

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