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Anglo-American Tensions Over the Chinese Offshore Islands, 1954-1958 ANGLO-AMERICAN TENSIONS OVER THE CHINESE OFFSHORE ISLANDS, 1954-1958 TRACY LEE STEELE LONDON SCHOOL OF ECONOMICS Thesis submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy of the University of London September 1991 UMI Number: U039456 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U039456 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 Library British Library of Political and Economic Science V'I'S 6 5S^V ABSTRACT The purpose of this thesis is to explore the ‘special relationship’ between the United States and Great Britain and their ability to work together in the Far East despite widely divergent policies towards the People’s Republic of China. The American policy of non-recognition of the PRC and its active support of the Republic of China, in opposition to Britain’s early recognition of the PRC, did not hamper British and American efforts to work together to wage or contain the Cold War. In reference to the crises in the area of the Chinese offshore islands of Matsu and Quemoy, I would argue that the US and Britain put their differences aside during tense periods because they agreed generally on over-all policy, to disengage the PRC from the influence of the Soviet Union, but used different means to attain this goal. Both Britain and the US, to different degrees, attempted to establish ‘two China’s’ in order to stabilize the situation in the Far East which left unchecked might trigger a third world war. The skirmishes in the offshore islands in 1954-55 and 1958 highlighted the danger of this situation and affected the related issues of the China seat in the United Nations, the embargo placed on trade with the People’s Republic at the time of the Korean war, Hong Kong and the diplomatic relationships in the region. This thesis examines the impact of these issues on Far East policy, particularly, how agreements reached on the United Nations and trade issues affect British policy during the 1958 offshore islands crisis. The change in British policy from fiaf 1954 to 1958 is striking, reflecting external issues such as Suez and Harold Macmillan’s rise to the office of prime minister. American policy, although less inflexible than is traditionally assumed, shifts slightly over the same period and attempts to normalize the situation by placing tighter controls on its ally, Chiang Kai-shek. As will be seen, British cooperation on Far Eastern issues was an important prerequisite for American manoeuvres in the region. TABLE OF CONTENTS TABLES: Maps of the Region 2 ABBREVIATIONS 5 ACKNOWLEDGEMENTS 7 CHAPTER 1: Introduction 8 CHAPTER 2: Oracle 18 CHAPTER 3: Tangled Relationships: The United States, 74 Britain and the ’Two Chinas’ CHAPTER 4: Foreign Policy and Controls on Trade with 134 the People’s Republic of China CHAPTER 5: The China Seat at the United Nations 169 CHAPTER 6: The Washington Talks of 1957 and their 209 Aftermath CHAPTER 7: Another Showdown: the Allies Stand Together 250 CHAPTER 8: Conclusion 329 BIBLIOGRAPHY 339 1 200 ioo Nikolaevsk • SAKHALIN“ p q Mukden Peking • Seoul CHINA - 5 ^ 2 , Kyoto Nanking O Hankow SHIKOKU Chungking KYUSHU Kunming Wuchow Canton Hanoi / FORMOSA (TAIW AN) P a c if i c HAINAN 0 c e a Manila PHILIPPINE Caro Line Is. — t a NA N K IN G SHANGHAI WUHU HANKOW HANGCHOW, NING PO C H U H SIEN NANCHANG CHANGSHA WENCHOU CH IENO U — HENGYANG 7. : TAl SHAN UEH ^ — CHIH-CHU TAO (SPIt • ■ - TUNG-YUNG (YIN MATSU ■ PAI C H V A N UEH T A Q ' FOOCHOW CHUNG-CHUAN TAO ■ | (TUNGKUEN) CHANGTING KEailNG' TAIPEI VU-CH'IU (oacsEU) AMOY' * * CNINMEN (QUEMOYI SWATOW CANTON TAKAO Guerrilla forces on these islands were withdrawn to the Ta Chen Islands /9 on January SOUTH CHINA COAST (inch FORMOSA) - P M A C A O H O N O K O N O (Fort.) (U.K.) LOCATION:a t i o n OFo f AIRFIELDSa ir f ie l d s ANDa n d STATUSs t a t u s OFo f OFF-So f f -sjmmjslands ^ C om m unist Airfield ------------- island held by Chinese Nationalist guerrilla^ Island garrisoned by Nationalist troops Island occupied bv Chinese Communists sin^j^ Januaryi Railroad Road 100 200 S ta tu te Mil 100 3 TUNG-AN oMa-chiang HUITOW BAY TA-TENG TAO (Tw atin)HSIA-MEN TAO (Twatin)HSIA-MEN WEI-TOU CHIAO (Amoy) (Weitow-Klao) CHIN SHAN CHIANG UEH HSU AMOY [Little Quemi IN-MEN AMOY HAKtOK t ■ r WU-HSU -V, (Wu-Sti) W , a r m * HfT er ARTrtl e k y FORMOSA STRAIT 40903 ABBREVIATIONS AWF Ann Whitman File CINCPAC Commander in Chief, Pacific Chicom Chinese Communists Chinat Chinese Nationalists CHINCOM China Committee, permanent working group of the Paris Consultative Group CIA Central Intelligence Agency COCOM Coordinating Committee of the Paris Consultative Group of nations working to control export of strategic goods to communist countries COS Chiefs of Staff EL Eisenhower Library FO Foreign Office FRUS Foreign Relations of the United States GRC Government of the Republic of China KMT Kuo Min Tang JCS Joint Chiefs of Staff MAAG Military Assistance Advisory Group NA National Archives NATO North Atlantic Treaty Organization NSC National Security Council OEEC Organization for European Economic Cooperation PRC Peoples’ Republic of China PRO Public Record Office ROC Republic of China SEATO Southeast Asia Treaty Organization UN United Nations Organisation 6 ACKNOWLEDGEMENTS I would like to express my thanks to my supervisor Professor Ian Nish for his forbearance, patience and many kindnesses during the preparation of this thesis. I am also grateful to Professor John Young of the University of Salford, Dr. John Kent of the LSE, Dr. Scott Lucas of the University of Birmingham for their continued support and encouragement and also Dr. Michael Dockrill of Kings College for his initial suggestions. In addition I would like to thank the International History Department’s secretaries, particularly Pat Christopher and Margaret Broadgate. I would like to thank the Irwin Fund Grant that enabled me to conduct research in the United States. I would also like to thank all my friends that I have met over the years at the Public Record Office, in the Tuesday Club at the LSE and at William Goodenough House, particularly, Ustina Markus, Kazuko Hatano, Linda Kieding-Kersee, Larry Butler, Flick Lane, Nick Cull, Brian Heamdon, Heesu Kim, Farooq Bajwa, Tang Chi- hua, Oma Almoog, Tony Gorst, Effie Pedaliu, Evanthis Hastivasiliou, Klaus Larres, Patricia Clavin, Barbara Schwepcke, Paul Hammer, Doc Rossi, Tebogo Molefhe and everyone else who has helped to make my years here in Britain ones that I will never forget. It seems impossible to believe that this journey is at an end and I will always remember the days when I thought it never would. I can not say enough to express my thanks to Dr. and Mrs. Morris and Jonathan. They have offered me a "home away from home" and in many respects have been like my own family. I would particularly like to thank Kate Morris whose cheerfulness and sanity helped me through the days when stamina flagged. I would like to acknowledge the love, encouragement and assistance that I received from my late great aunt, Miss Lucille Kosinske. In addition I would like to thank my aunt, Doris McCollem, for keeping me appraised of home news, and also my aunt, Ruth Jackson. I would also like to thank Julie for being a wonderful big sister, my brother Paul for being Paul, and my brother Andrew and sister-in-law Kim for their love and support. Perhaps now they will understand that not all students of the London School of Economics are economists! Finally, I would like to thank my mother, Halcyon Steele, for all that she is and for all that she has imparted to me. I would like to dedicate my thesis to the memory of my grandmother, Mrs. R.C. McCollem, who showed us the true meaning of love and inspiration. 7 CHAPTER 1 INTRODUCTION It would indeed be an understatement to say that the United States and Britain in the 1950’s merely disagreed over China. From 6 January 1950 when Britain recognized the People’s Republic a gulf opened up between the two allies that was not fully bridged until the ‘great aberration’1 in American policy ended on 1 March 1979 when the US recognized the PRC. Despite their seemingly insuperable differences, the spread of the Cold War from Europe to Asia provided a basis for their cooperation as they came to share the common goals of splitting the Chinese Communists from the Soviet Union2 and containing the further spread of communism in the Far East. This commonality of purpose was achieved and maintained with difficulty, particularly since they also disagreed on the measures necessary to realize their goal. Thus, the occurrence of hostilities in the Chinese offshore islands not only might exacerbate their already tense relations but might also publicly expose the differences between the US and Britain which, it was then believed, was the aim of the Soviets and their Chinese ally.
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