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893.00/13755: Telegram

The Counselor of Embassy in China (Lockhart) to the Secretary

96

of State

PEIPING, December 13, 1936-3 p. m. [Received December 13-9 a. m.]

605. My 603 and 604. 1. Chang Hsueh Liang's troops whose mutiny against the Central Government seems to have been the cause of the detention of Chiang Kai Shek by Chang are said to have made certain demands of Nanking among them being: 1, war against Japan; 2, an alliance with Soviet Russia; 3, admission of Communists to Kuomintang; and 4, moderation of formal constitution instead of dictatorship.

2. Reuter reports Madame Chiang Kai Shek has received at Nanking personal message from Chang Hsueh Liang guaranteeing her husband's safety.

3. There has been dissension between Chiang and Chang for sometime over the latter's failure to deal effectively with the Communists in the Northwest and it is possible that the present difficulty is the outgrowth of that failure as well as personal animosity especially in view of the reported appointment by Chiang Kai Shek on December 11 of General Chiang Ting Wen as Commander in Chief of bandit suppression in the Northwest in succession to Chang Hsueh Liang. Marshal Chang has from time to time been charged with sympathetic leanings towards the Communists troops.

4. The revolt and detention of Chiang has created a tremendous sensation in Peiping and it is known that there is great activity in Chinese circles. It is understood that Sung Che Yuan's attitude towards Nanking has not changed and that his attitude towards communism in the Northwest has not been altered by the new turn of events. Repeated to Tokyo and Nanking.

LOCKHART

793.94/8436: Telegram

The Counselor of Embassy in China (Lockhart) to the Secretary

of State

PEIPING, December 13, 1936-4 p. m. [Received December 13-1:30 p. m.]

606. The Consulate at Tsingtao by mail despatch dated December

11 96 confirms report that the strike there has been amicably adjusted on the following terms:

96 Not printed.

1. Punishment of the principal offenders among the bad labor elements who have been discharged.

2. The foregoing bad labor elements to be deported from Tsingtao. 3. Beside the deporting of bad labor elements a strict watch over and control of other discharged laborers to be exercised by the Chinese authorities. In the event there is a recurrence (of the labor trouble) the Chinese authorities will be held strictly responsible.

4. Agitators of present labor trouble are to be deported.

5. The Chinese authorities are not only not to place obstacles in the way of laborers who wish to resume work but the authorities by proclamation and other appropriate means are positively to encourage and urge the resumption of work by the laborers.

6. The discharged bad labor elements must not be employed by the Municipal Administration.

7. The Chinese police are to exercise vigilance over bad elements among the laborers so as to preserve peace and order.

Some of the Japanese landing party have already returned to their ships according to press reports and the remainder will be withdrawn by December 15, but this is not confirmed by Tsingtao Consulate.

Repeated to Nanking, by mail to Tokyo.

LOCKHART

893.00/13759: Telegram

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

NANKING, December 14, 1936-10 a. m. [Received December 14-7:30 a. m.]

350. 1. Nanking continues quiet. Kung on assuming duties as Acting President of the Executive Yuan issued an appeal to the people to support the Government, the text of which is not being telegraphed as I assume it is carried by the press. Hsu Mo informed me this morning that Central authorities had received telegrams supporting the Government from Sung Che Yuan and other provincial governments and expressed confidence that Government can control situation. Donald is in Loyang trying to get in touch with Chang Hsueh Liang. Hsu Mo also told me that the central authorities are in touch with Sian by radio.

2. Central News Agency under date of December 13 carries a long appeal from Feng Yu Hsiang to Chang Hsueh Liang offering amnesty if he will release Chiang and discuss matters frankly with Government; offers himself as hostage as evidence of his sincerity. In this appeal Feng expressed belief that Chiang will accede to Chang Hsueh Liang's request and added "thus, your difficulties will be solved and your wish of fighting Japan may be expressed."

3. By mail to Peiping.

JOHNSON

793.94/8437: Telegram

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

TOKYO, December 14, 1936-noon. [Received December 14-10 a. m.]

258. 1. The British Ambassador has told me that Eden had called on the Chinese Ambassador in London and had strongly advised him to urge his Government not to overplay its hand. As matters stand at present the Japanese Cabinet finds itself in a precarious position owing to the adverse public reaction to the agreement with Germany, the consequent holding up of the Fisheries Treaty by Soviet Russia and the failure of the negotiations with China. The British Government believes that China has everything to gain by making such unessential concessions as will save Japan's face. If on the other hand Nanking proves completely recalcitrant to all overtures the result will tend to solidify and unify Japanese public opinion in favor of stronger measures.

2. I am informed that Moscow has made similar recommendations to Nanking.

3. The Chinese Ambassador here, after describing to me the various Japanese demands presented in the recent conversations in Nanking, the replies given to those demands and the counterdemands presented by the Chinese Government, said that no further negotiations would be possible until the Chinese troops in Suiyuan had driven out the Japanese-supported Mongolian forces but that the Chinese forces would stop at the frontier in order not to invite direct attack from the Kwantung army. He said that the Mongolian forces were now surrendering in large numbers and that there was no question as to the early suppression of the entire movement. The impression derived from his talk and manner was that China is at present "feeling its oats" and is very likely to overplay its hand in resisting Japanese

overtures.

4. Sir Charles Addis of the Hong Kong [and] Shanghai Bank told Eden that the Japanese representative of the Yokahama Specie Bank in London had said to him that the Japanese military had definitely given up for the present any thought of separating North China from Nanking.

5. The foregoing telegram was drafted prior to the reported rebellion of Chang Hsueh Liang.

Repeated to Peiping.

GREW

893.00/13760a: Telegram

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

WASHINGTON, December 14, 1936-1 p. m.

79. Department desires that, unless you perceive objection (in which event you should promptly cable the Department to that effect, citing reasons), you call on the Minister for Foreign Affairs or on the Acting Chairman of the Executive Yuan, or both, and express orally, as under instruction, the American Government's solicitude with regard to the safety of the person of Chiang Kai-shek, Chairman of the Executive Yuan.

Please inform the Department by telegram when you have carried out this instruction.

MOORE

893.00/13764a: Telegram

The Acting Secretary of State to the Ambassador in China

(Johnson)

WASHINGTON, December 14, 1936-2 p. m.

80. In view of the important political implications, both internal and international, of the present situation and possible developments at and connected with Sianfu, I desire that you give most solicitous attention to those matters, making full report of outstanding facts in the immediate situation and of related facts; and that you maintain close contact with Chinese officialdom and your diplomatic colleagues, especially the British. There may exist or may arise an opportunity for appropriate use of influence by representatives of foreign governments in the best interest of all concerned. It stands to reason that interference with the normal functioning of the National Government in China, especially if this should involve procedures of unlawful violence among and against high officials and perhaps a domestic military conflict, would impair and impede the progress which China has been making toward establishing political stability and economic well-being, would impose new hardships on the Chinese people, would create a new menace to foreign lives and property and interests in general in China, and would add to the danger of international conflict in the Far East. The situation therefore is of concern to the world. It is, as you know, the policy of this Government not to interfere or intervene in the internal affairs of foreign countries. At the same time, we cannot be indifferent to developments anywhere which jeopardize the interests of nations which are earnestly seeking political and economic stability and which may inject new hazards into an international situation already delicate. We are not prepared at this moment to say or to suggest that any action might appro

priately be taken by this or other governments in relation to the situation under reference; but we will be carefully observing developments therein and studying the question of possible helpful action. I therefore desire that you give us the benefit of careful observation and study on your part, consultation with your colleagues, and, promptly and continuously, any comments or suggestions which you may formulate.

MOORE

893.00/13763: Telegram

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

PEIPING, December 14, 1936-4 p. m. [Received December 14-3: 27 p. m.]

608. 1. Chinese officials interviewed today appear to be in a very confused state of mind regarding events in Shensi, and are apparently without information except that which comes from Nanking. It is very evident that at least some of them have come to the conclusion that Chiang Kai Shek is dead although they have no direct information to sustain that conclusion. Information coming from Nanking seems to indicate that Chiang is alive but it is pointed out that some significance may be attached to the fact that no direct word seems to have been received from him by the Chinese officials and that there has been a reorganization of the Military Council at Nanking.

2. A well-informed foreigner (See first paragraph Embassy's despatch No. 869, November 18 98) gives it as his opinion that the present move has been in contemplation for some time between Chang Hsueh Liang and a number of his commanders and that it is designed to force Chiang Kai Shek's hand for the formation of a constitutional government with all factions participating and with a united front against the Japanese. He believes that there is little foundation for the report that Chang Hsueh Liang will attempt to establish a separate government in the northwest.

3. It is well known that Chang Hsueh Liang's troops have for a year been subjected to nationalistic propaganda of Chinese Communism. In November, before the capture of Pailingmiao from the irregulars, Chang proposed to Chiang that the Northeastern troops should be despatched to the Suiyuan front to resist the irregulars, but Chiang refused the request as premature. Previously the animosity between the two men had been increased as a result of ill-feeling between Chang and Yang Yung Tai (Chiang's right hand man, the Governor of Hupeh, recently assassinated).

The recent convocation of high officials at Sian was for the nominal

"Not printed.

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