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In early June 1949, Chiang Kai-shek received startling news from Mao Renfeng, the head of the secret bureau who had been weakened by Li Zongren. The content of the news pointed out that the Taiwan Provincial Security Command is conducting round-the-clock surveillance of Chiang Ching-kuo. This news shocked Chiang Kai-shek, but his heart was full of contradictions and doubts.
Chen Cheng, Chiang Kai-shek's confidant and godson-in-law, has challenged Chiang's authority since he became chairman of the Taiwan provincial government. Chiang Kai-shek had always had doubts about Chen Cheng's loyalty, but he was also reluctant to easily believe Mao Renfeng's secret reports. However, Chiang Kai-shek, who was suspicious by nature, still tended to believe the authenticity of the news after much consideration.
Chiang Kai-shek recalled a few days earlier correspondence in which he offered to arrive directly in Taipei from Zhoushan, but Chen Cheng's reply disturbed him because Chen Cheng did not respond within 24 hours, which went against usual behavior. Therefore, Chiang Kai-shek decided to go to Taiwan in person, land in Kaohsiung with Chiang Ching-kuo, and then move to Xikou Tai in Taipei's Jiaoban Mountain.
Intelligence agencies later confirmed that Chen Cheng's surveillance of Chiang Ching-kuo was indeed true. Chen Cheng took this action because he was worried about the instability of the situation in Taiwan, and the United States also took the opportunity to win him over, trying to take advantage of the chaos of the situation to support the forces of Taiwan independence. Although Chiang Kai-shek did not care much about this intelligence, he had to take action considering that Chiang Ching-kuo was being monitored.
Chiang Kai-shek began to doubt Chen Cheng's loyalty and thought that Chen Cheng might take advantage of the opportunity to usurp the throne. He felt that Chen Cheng's treatment of radicals and Communist Party suspects was too lenient, which deepened his suspicions about Chen Cheng. In addition, Tsai Xiaoqian, head of Taiwan's underground party, Taiwan Province, was active in Taiwan's business circles and almost semi-disclosed his identity, but Taiwan's military and police did not take action. All these factors deepened Chiang Kai-shek's suspicions of Chen Cheng, and he decided to take action to teach Chen Cheng a lesson.
Chiang Kai-shek met Chen Cheng at his residence in Xikou, Taipei, and Chen Cheng was dressed in a general's uniform, but after entering Chiang Kai-shek's inner room, he quickly became respectful. Chiang Kai-shek mentioned Chiang Ching-kuo and hoped that Chen Cheng would take more care of him. Chen Cheng responded that Chiang Ching-kuo had been following him, but did not hold public office, so there was a lack of discipline. Chiang Kai-shek referred to the turmoil and panic in Taiwan, fearing that radicals and Communist Party suspects would take the opportunity to sow chaos.
Chiang Kai-shek decided to take action, enacting the Regulations for the Punishment of Rebellion and the Regulations on the Elimination of Bandits and Spies, and began mass arrests of progressives and underground Party members. Chiang Kai-shek's drunkenness was clearly that he hoped to consolidate his power through these measures and send a signal of demonstration to the military and political officials.
Under the cloud of white terror, the situation in Taiwan has further deteriorated. A large number of progressives were arrested, Cai Xiaoqian, secretary of the Taiwan Provincial Party Committee of the CCP's underground party, also defected, and Lieutenant General Wu Shi, the CCP's "secret envoy No. 1", was killed. Under Chiang Kai-shek's pressure, the situation in Taiwan under Chen Cheng's rule gradually moved towards the harsh era of white terror.
Throughout the process, however, Chen Cheng remained extremely respectful and submissive to Chiang Kai-shek, and he worked hard to maintain Chiang Kai-shek's authority, despite the difficulties and challenges of the situation.
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