793.94/8009: Telegram The Ambassador in China (Johnson) to the Secretary of State NANKING, June 29, 1936-11 a. m. [Received June 29-10:30 a. m.] 209. 1. An officer of the Embassy was informed this morning by a responsible official of the Foreign Office that the North China situation is now causing the Chinese Government much greater concern than is the crisis with the Southwest. He said that if Sung Che Yuan should yield a little longer to the Japanese military, serious developments might be avoided. He did not know what influence in this respect might be exerted upon Sung by the new Tientsin Mayor, Chang Tzu Chung, whom he described as a stronger, more stubborn and more antiJapanese officer than Sung. He said the Japanese had opposed Chang's appointment but had not made an issue of it although they had wanted Chi Hsieh Yuan given the office and they were now working to eliminate Sung's 29th army (formerly Feng Yu Hsiang's Kuominchun) from Hopei. If Sung (and Chang) should not yield in this, it was feared that the Japanese would use force to accomplish their desires. In any event he saw another major crisis looming in the North. 2. Appointments of Chang as Mayor of Tientsin and of Major General Liu Ju Ming as Chairman of Chahar, previously made by the Hopei-Chahar Council, were formally mandated by the National Government June 26. 3. Kawagoe is scheduled to leave Shanghai for Nanking tomorrow by Japanese naval vessel. He will present his credentials as Ambassador July 3. The Foreign Minister expects him to take up the customs incidents as his first important matter of business but Suma, First Secretary of the Japanese Embassy, informed me this morning that he is directing the Japanese Consul General at Tientsin, who is now in Shanghai conferring with his Ambassador-designate and is expected to visit Nanking, to settle the matter locally. 4. To the Department and Peiping. By mail to Tokyo and Shanghai. 893.00/13578: Telegram JOHNSON The Consul General at Canton (Spiker) to the Secretary of State CANTON, June 29, 1936-4 p. m. [Received June 29-11:20 a. m.] 48 Referring to my telegram of June 27, 11 a. m., local government controlled press today publishes text of telegram allegedly addressed 48 Not printed. to Nanking on June 25th by the Southwest Central Executive Committee. Telegram presents five points mentioned in my telegram June 23, noon, and addressed them as "the irreducible minimum to form agenda of the Central Executive Committee at Nanking and, upon passage, to be put immediately into effect". Telegram concluded by urging that five points be referred to the Standing Committee, that all red tape and formality be dispensed with by that Committee in placing the agenda before the Central Executive Committee, and that under no circumstances should the Southwest's proposal be allowed to fall into the hands of the Secretariat of the Central Executive Committee. 2. The same press publishes an open letter to the public from Marshals Chen and Li excoriating the Japanese and the attitude of the Nanking leaders. The marshals state that "slander has been our reward for patriotism" and they urge that the country appoint an investigation committee to examine into the matter. 3. Veteran Hsiao Fo Cheng in statement issued by local government press agency accuses Chiang of sophistry in his recent statement to the press at Nanking (published in Hong Kong June 26th) and concludes by ridiculing Chiang's alleged announcement that he will not become a candidate for the Presidency of China. Hsiao suggests that the People's Convention is still far distant and that Chiang is presumptuous and highly premature in assuming that he is desired for the office. It is generally believed that military are compelling Hsiao to act as organization's civilian mouthpiece and that he and many other individuals and organizations are being ordered to sign a seemingly unending series of proclamations et cetera prepared by the military. 4. Another informant just arrived from Kwangsi confirms previous reports of heavy troop movements northward. Informant reports tremendous increasing feeling in Kwangsi against Pai because of currency situation and conviction that Pai's challenge to Nanking is suicide. American missionaries at Kweilin, Kwangsi, have telegraphed that they left that city yesterday en route to Canton. Previous letters stated they would evacuate in the event of threatening developments in Kweilin area where there had been persistent but unconfirmed reports of fighting to the north. 5. Reliable information from northwest Kwangtung reports movement of approximately 30,000 Kwangtung troops into Lokchang and Namyung area in northern Kwangtung between June 10th and 20th but none since latter date. 6. At 3 a. m. yesterday sandbag barricades were placed on road in Canton suburb where Marshals Chen, Li, the Provincial Chairman and other high officials reside. Following foreign inquiry as to significance of barricades they were hastily removed with statement that construction was merely practice measure. Authorities apparently taking special precautions but have not declared martial law. Canton outwardly quiet though there is apprehension that there may be serious developments about July 10th and persistent rumors that Yu Han Mou will take over local control from Chen. 7. Reuter's Canton correspondent today reports representative as stating that Kwangtung and Kwangsi will send seven delegates to Shanghai July 8th prepared to attend plenary session July 10th if Nanking gives satisfactory assurances of adoption of the five points mentioned in paragraph 1 of this telegram. Local official has just denied truth of Reuter report and alleges that the two provinces will send two special representatives direct to Nanking to negotiate. 8. Sent to the Department, Peiping, Nanking, Hankow and Shanghai. SPIKER 793.94/8093 Memorandum by the Ambassador in China (Johnson) of a Conversation With the First Secretary of the Japanese Embassy in China (Suma) 19 49 NANKING, June 29, 1936. In the course of conversation today Mr. Suma stated that the situation in North China was very serious from the point of view of the Japanese. He felt that the political situation there was particularly uncertain. He referred to the seizure of two Japanese vessels by the Chinese Customs authorities at Tsingtao and Tientsin. Mr. Suma stated that the Japanese Consul General at Tientsin was due here in Nanking today or tomorrow to discuss these questions. He said that acting under instructions from his own Government he had protested to the Nanking authorities in this matter but that it was very difficult to handle such matters here in Nanking and he was therefore going to urge the Japanese Consul General at Tientsin to effect a settlement of these matters locally, but he expressed himself as convinced that conditions in North China were not at all promising. Mr. Suma went on to state that upon his return to Nanking, after his recent visit in Japan, he regretted to find that conditions here were not changed for the better. He said that his own Government was determined to find some agreement of a basic character which would permit Japan and China to carry on pacifically but that the Chinese were still talking platitudes, giving them kind words and doing nothing of a concrete nature to help to improve the situation. Mr. Suma said that the promises of the Chinese meant nothing. He re 49 Copy transmitted to the Department by the Ambassador in China in his despatch No. 575, July 13; received August 10. ferred to the fact that the Chinese were making an "armed camp" of Nanking against Japan; that it was now impossible to walk on the hills around Nanking as they were putting up anti-aircraft guns here, there and everywhere, against Japan; all of which made the situation very difficult and very alarming. He referred to the situation in Southwestern China and said that the Japanese Consul General at Canton had made two protests to the authorities at Canton against the anti-Japanese demonstrations and activities there, only to be told by General Chen Chi-tang that they could not control the honest feelings of the people. Mr. Suma expressed the feeling that such reactions could only portend difficulties in the future. I gathered generally that Mr. Suma felt very pessimistic as to the future of Sino-Japanese relations. NELSON TRUSLER JOHNSON 893.00/13584: Telegram The Consul General at Canton (Spiker) to the Secretary of State CANTON, June 30, 1936-4 p. m. [Received June 30-3:45 p. m.] Referring to my telegram of June 29, 4 p. m., Marshal Li Tsung Jen yesterday took oath as Commander-in-Chief of the Fourth Group Army of the Anti-Japanese National Salvation Forces (see paragraph 2 of my telegram June 6, noon; and one paragraph of my telegram June 24, 9 p. m.,50 concerning Chen's similar assumption of new title June 23rd). Following extracts from Li's speech of acceptance as published by local government news agency are in marked contrast with Chen's conciliatory advices that Nanking's leadership be accepted: "My armed colleagues and I, having been intrusted with this important mission will make every endeavor to bring the Southwest's policy of resistance and salvation to fruition. At the same time we hope that the revolutionary masses of the country will come into line with us". "While we must do our utmost to resist Japanese, we must at the same time keep diligent vigil over Chinese traitors who are to be ruthlessly crushed. As with fighting the bandits, we must first list the internal traitors in order to strengthen both fronts". "I not only pay my very best regards to all revolutionary people and the soldiers of the whole country but also hereby declare that I am resolved to lead the entire Fourth Group Army to the front in our national and revolutionary campaign". 2. Local authorities continue to endeavor to suppress all discussion of local political situation, most casual remarks apparently being 50 Latter not printed. 919456-54--21 sufficient cause for numerous arrests by plain-clothesmen who swarm in the city. Anti-Japanese propagandists are addressing street crowds but little interest shown, partly because of fear that plain clothes men using this device to trap listeners into making political comments. Unusually large number of Japanese alleged business men and sightseers have been arriving in Canton during the past week. Canton remains quiet. 3. Financial situation in Kwangsi reported serious, Kwangsi Provincial Bank, which has been designated sole medium for exchange transactions having closed its doors several days ago (see paragraph 3 of my telegram June 11, 1 p. m.51). Canton currency has remained fairly steady for past 5 days averaging 180 to the Hong Kong dollar. At least 2 million silver dollars of deposits, referred to in first sentence paragraph 3 of my telegram June 6, 4 p. m.,52 have been withdrawn believedly for deposit with Government reserve of silver in Canton. 4. Sent to the Department, Peiping, Nanking, Hankow and Shanghai. SPIKER CHAPTER III: JULY 1-OCTOBER 15, 1936 Warning of gradual abolition of extraterritoriality in "Manchoukuo"; likelihood of Marshal Chang Hsueh-liang joining anti-Japanese_movement; restoration of relations between Southwest China and Central Government at Nanking; fresh incidents menacing Chinese control of Suiyuan Province; anti-Japanese incidents at Chengtu, Pakhoi, Hankow, and Shanghai; deadlock in Japanese-Chinese conversations at Nanking for settlement of outstanding problems; British-American efforts toward moderating Japanese attitude in China; American reply to Belgian inquiry regarding extraterritorial situation in "Manchoukuo"; resumption of conversations at Nanking. 793.003 Manchuria/4: Telegram The First Secretary of Embassy in China (Merrell) to the Secretary of State PEIPING, July 2, 1936-11 a. m. [Received July 2-7 a. m.] 333. Following telegram has been received from the Consul General at Mukden: "July 1, 6 p. m. Kokutsu published text of statement issued today in the name of the Minister for Foreign Affairs regarding the future status of extraterritorial nationals other than Japanese. The statement declares that whereas, in practice, Manchukuo has hitherto accorded as a favor to nationals of countries which enjoy extraterritorial rights in China similar treatment, it has been decided to abolish |