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3. He denied that Japanese demand had [approached] the Foreign Office in any way in connection with developments in the South. (Since it is known that the Japanese Chargé d'Affaires has not visited Nanking this month, Suma is in Japan and that Nanking office of the Japanese Embassy is in charge of a Third Secretary, this denial would seem to disprove of the Hong Kong press reports mentioned in second paragraph of Canton's June 9, 3 p. m.)

4. Repeated to Department and Peiping, by mail to Tokyo.

PECK

893.00/13525: Telegram

The Consul General at Canton (Spiker) to the Secretary of State

CANTON, June 10, 1936-8 p. m. [Received June 10-1:55 p. m.]

Referring to my telegram of June 10, 7 p. m.,23 mobilization proclamation of Marshals Pai and Li made public today announcing, first, that wherever their army penetrates there all relations with Japan shall cease and all humiliating agreements made with Japan be null and void; second, that resistance to Japan is the sole purpose of northern expedition since Kwangsi is opposed to all forms of civil strife; third, that all anti-Japanese forces, of whatever province and irrespective of affiliation, are welcome to join Kwangsi in its crusade, and fourth, that no individual or armed force will be molested as the army progresses unless they be traitors to the Chinese people.

2. Marshal Chen continues to avoid any commitments, the Kwangsi leaders being spokesmen and leaders of the advance into Honan. Kwangtung forces believed concentrated on or very near provincial border. It is known that Chen is seeking to purchase very large amount of cement for immediate delivery, presumably for construction of defences. Increasing belief locally that Chen is using every effort not to be drawn into actual conflict with Nanking. Canton remains quiet but apprehensive. Sent to Embassy and Hankow.

SPIKER

793.94/8050

The Ambassador in China (Johnson) to the Secretary of State No. 510

PEIPING, June 10, 1936. [Received July 13.]

SIR: I have the honor to enclose a copy of a memorandum 24 of a conversation which I had on June 8 with the Counselor of the Soviet

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Embassy, Mr. Anatole Bitner, during which he expressed the opinion that the local situation is more dangerous than it was a year ago because of the preparations of the Japanese for the occupation of the five northern provinces, that the process of eliminating the army of General Sung Che-yuan is being carried on quietly, that the Japanese will accomplish their purpose without war, and that Japan is not likely to attack Russia, being too absorbed in preparing the ground in Manchuria and North China.

Respectfully yours,

893.00/13531: Telegram

NELSON TRUSLER JOHNSON

The Counselor of Embassy in China (Peck) to the Secretary of State

177. My 176, June 10, 1 p.m.

NANKING, June 11, 1936-9 a. m. [Received 8:45 p. m.]

1. Standing Committee of the Central Executive Committee yesterday set July 10 for convening of plenary session and it is expected that an appeal will shortly be made to Southwestern leaders to participate with an ostensible view to adopting a common policy towards Japan, the Southwest and the National Government. A delegation of important leaders may be sent to Canton to make the appeal, and Kung is being mentioned in this connection.

2. We learn from reliable official sources that press reports of the incursion of Kwangsi troops into southern Hunan are in part true and Kwangsi troops have gone north beyond Lingling (Yungchow), south central Hunan, and others at least to Chenhsien (Chenchow), southeastern Hunan. The first body is reported to have passed through Lingling June 8 and to number 2000. Reports that two bodies have converged at and occupied Hengyang (Hengchow) have not been confirmed.

3. Reports concerning any National Government plans for stopping the advance of Southwestern troops northward are conflicting. The official report from official sources is that the first Government line be [is] just south of Changsha.

4. Prior to the present internal crisis some 12 members of Italian air mission were transferred from Nanchang to Nanking and several planes were brought here. A foreign pilot attached to Chiang Kai Shek headquarters has stated that the Italian instructors are to be replaced by Americans, 22 of whom have been engaged in the United States including 2 army reserve officers. (Selection was probably made by Holbrook, formerly in Hangchow school.) Reliably reported that Chiang Kai Shek "has asked the National Aviation Corporation to remove its headquarters from Shanghai to Chengtu ["]

and it is understood that the corporation is still negotiating with his representatives concerning this request.

5. Repeated to Department and Peiping, paragraphs 2 and 3 repeated to Hankow.

PECK

793.943 Manchuria/23: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

TOKYO, June 11, 1936-6 p. m. [Received June 11-9:08 a. m.]

125. Treaty between Japan and Manchukuo signed yesterday is published in the English press today.25 The Foreign Office has confirmed the accuracy of the text which is described as the first step towards abolition of extraterritoriality in Manchuria. This treaty is concerned primarily with questions arising out of the administration of the South Manchuria Railway zone and the payment by Japanese of Manchukuo taxes. It contemplates the withdrawal of special Japanese police by the end of 1937 and is to be followed in due course by other agreements looking to the extension of Manchukuo judicial authority over Japanese subjects resident in Manchuria. Text follows by mail.

Repeated to Peiping by mail.

GREW

893.00/13534: Telegram

The Counselor of Embassy in China (Peck) to the Secretary of State

NANKING, June 12, 1936-10 a. m. [Received June 12-4: 23 a. m.]

179. The Minister of Finance informed me confidentially yesterday that he received a visit from General Kita, Japanese Military Attaché, a few days ago and the Military Attaché with evident satisfaction inquired how Kung liked the latest political maneuver of the Southwest under the disguise of a pretended anti-Japanese expedition. Kung asked how he knew the anti-Japanese character of the move was only a pretended [expedition?] and the Military Attaché said evasively that the Japanese had means of knowing this. Kung warned that even if the anti-Japanese aspect were only pretended, nevertheless it might fan widespread anti-Japanese feeling in China into activity and thus imperil Japanese subjects scattered throughout China. Repeated to Peiping.

PECK

25 For text of treaty signed at Hsinking, June 10, 1936, see The American Journal of International Law, vol. 30, No. 4 (October 1936, Supplement), p. 188.

793.94/7948: Telegram

The Chargé in France (Wilson) to the Secretary of State

PARIS, June 12, 1936-10 a. m. [Received June 12-6:08 a. m.]

489. Following is reported as of possible interest to the Far Eastern Division. An officer of the Embassy in conversation with an officer of Chinese Embassy here who is an old friend was informed that Koo 26 was under instructions to sound out the representatives of the principally interested powers at Geneva as to their reaction should the National Government be forced by the action of Canton to go to war with Japan. The informant expressed firm conviction that the National Government would fight Japan rather than engage in civil war with Canton and said that every effort was now being made to restrain Canton until the reaction of the interested powers could be ascertained.

Repeated to Geneva.

WILSON

893.00/13539: Telegram

The Counselor of Embassy in China (Peck) to the Secretary of State

NANKING, June 12, 1936-3 p. m. [Received 6:50 p. m.]

183. 1. Central Executive Committee last evening notified its members that Chen Chi Tang had agreed to halt advance of his troops temporarily and to ask Li Tsung Jen and Pai Chung Hsi to do likewise. Kung is reliably reported to have stated privately last evening that Hengchow had not yet fallen to the Southwestern forces. Chiang Kai Shek and Chang [Chun?] are reliably reported to have stated privately this morning that the northward advance of the Southwestern troops in Hunan had halted. Central News Agency, Changsha, June 11, cites reports reaching Changsha that advance of Southwestern troops has halted south of Hengchow and states that busses were still running yesterday between Hengchow and Changsha.

2. Repeated to Department and Peiping, repeated to Canton, Hankow.

26 V. K. Wellington Koo, Chinese Ambassador in France.

PECK

793.94/7950: Telegram

The Ambassador in China (Johnson) to the Secretary of State

PEIPING, June 12, 1936-3 p. m. [Received June 12-2 p. m.]

301. Embassy's 282, June 4, 3 p. m.

1. The situation in North China is again becoming tense. SinoJapanese conversations are in progress in Tientsin. Lieutenant General Sugiyama, Vice Chief of the General Staff at Tokyo until March of this year, and Lieutenant Colonel Tanaka, representative of Lieutenant General Itagaki, Vice Chief of Staff of the Kwantung army, arrived at Tientsin June 11. (Sugiyama's visit was originally scheduled to take place early this year. Reference paragraph 3 of Embassy's 21, January 16, 4 p. m.26a) Kuwashima, Director of the Bureau of Asiatic Affairs of the Japanese Foreign Office, also arrived at Tientsin yesterday.

2. It is understood that these officers will visit Sung Che Yuan at Peiping within a day or two.

3. Chinese observers believe that Japanese pressure on Sung is being increased for the purpose of causing him to sign an agreement of significant scope. These observers are of the opinion that the Japanese are not pressing at present for the complete independence of the regime but for an autonomy and for a regularization of Japanese relations with the regime.

4. Japanese reports indicate that the Japanese military continue to contend that the situation in North China is still unsatisfactory because of the threat of Communism, anti-Japanese activities, Chinese attitude toward smuggling, and slow rate of progress in carrying out economic schemes of advantage to the Japanese.

5. The uncertainty existing at present with regard to the relations of the National Government and the Southwest is regarded as weakening Sung's power to resist Japanese pressure.

6. The attitude of Sung toward the situation in the South appears to be one of merely watching developments. Representatives of the National Government have visited him during the past few days and he has received, according to a reliable source, two telegrams from Pai Chung Hsi severely critical of Chiang Kai Shek. Some of Sung's civilian subordinates are understood to be in sympathy with the Southwest but it is not known to what end they may attempt to influence Sung.

7. The attitude of Sung's military subordinates is equally doubtful. They are understood to contemplate armed resistance to the

26a Ante, p. 16.

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