Wednesday, 19 November

The Ambassador to China invited us for lunch. Yu Hongjun said yesterday he had reported about finance in the Political Council. Originally, he did not want to mention the problem of prices. Nevertheless, the Generalissimo suddenly sent him a note, asking him to also report about them. As a matter of fact, Mr. H.H. Kung was never allowed to admit to price inflation, so he had to speak reluctantly based on such a principle. Consequently, he was heavily criticised. Last night the Generalissimo especially invited him to dine with him, and comforted him personally that his report was quite good. This made him feel particularly sorry for the Generalissimo. Both I, and Guo Taiji, thought that Yu was in an extremely miserable position.