Talked with S. K. 【周書楷] last night and this morning. These are some of his observations. (1) C. 【蔣中正] is a realist, not likely to counter-attack without U.S.A. support. (2) ViP 【陳誠] and the Prince 【蔣經國] are both careful, but their supporters are sometimes reckless and petty. C. seems to intend ViP to be successor but expects ViP to give the Prince a fair deal. (3) The two vice-ministers in the Foreign Office have not come up to people’s expectations. (4) The quick withdrawal of the ambassador from Laos was meant as a warning to the U.S.A., that 2-China policy is anathema. (5) C. does not really expect much from Chang Chi-yun 【張其昀]. (6) Wang Yun-wu 【王雲五] is quite an opportunist; tries to be more pro-C. than C. (7) The Taiwanese, whose relatives were victims of Chen Yi’s 【陳儀] massacre are irreconcilable. The farmers and the businessmen are satisfied, have no interest in politics. Some ambitious politicians try to create trouble. (8) Taiwan Power is marvelous in efficiency; morale among its employees is high. Taiwan Sugar is good. JCRR 【農復會] ranks with Taiwan Power. (9) Both ViP and the Prince have weak staffs.