Saturday, 11 October

Minister Guo Taiji forwarded Hu Shih’s telegram to me, reporting the main content of his talk with the American Secretary of State on the fourth of this month. It said:

1) There was no latest development over the negotiations between the United States and Japan. He also explained that the United States did not abandon the basic principle it had long embraced.

2) The war between Germany and the Soviet Union would come to a standstill in the winter, and Germany would turn its invasion to the South. The Mediterranean and North Africa would come under stress similar to the Near East.

3) The attitude of Thailand has really improved and it has slightly changed its pro-Japanese stance.

Peng Xuepei invited me to dinner. During the dinner, I talked with him about the matter concerning Mao, manager of the Eurasia Aviation Corporation of Lanzhou, having declined to sell a ticket to the Consular of the Soviet Embassy but instead he had arranged a special flight [unclear, see original]. Peng said the matter had been investigated and it was true. The Generalissimo also cabled to order an investigation. As a result, Mao was dismissed and a demerit given to the General Manager of the Eurasia Aviation Corporation. These types of people being involved in embezzlement are so rude. Probably he thought that he had someone to support him so he behaved like this. To me the punishment is still very light, but even to this extent, it could not be done without a cablegram from the Generalissimo. Li Dugong came. He has been appointed as the Officer of Office of the General Staff for receiving the American Military Delegation. This position is really very important and there were many competing applicants. It was the Generalissimo’s idea that he was selected. I felt really happy for Li Dugong.