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893.00/13780: Telegram

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

of State

PEIPING, December 17, 1936-3 p. m. [Received December 17-1:05 p. m.]

620. Embassy's 601, December 10, 5 p. m. A current newspaper report, not yet confirmed, states that fighting "of a serious nature" began again on December 14 on the eastern Suiyuan front in the vicinity of Hsingho. An observer from the Military Attaché's office and Victor Keen (China correspondent of the New York Herald Tribune), both of whom have just returned from the Suiyuan front, are nevertheless in agreement in stating that the situation there is quiet. Keen, who left Peiping almost immediately for the South, is quoted in the press today as stating that the morale of the Chinese troops is good, that considerable stores of meat were obtained by the Chinese with the capture of Pailingmiao (which he visited), and the damage done there "by Japanese bombing planes" has been exaggerated.

He confidentially stated to a foreign Military Attaché, and not for publication, that a surrendered staff ["irregular"?] officer of Wang Ying's cavalry [forces?] in a personal interview stated as follows: Some 40 Japanese officers and [technicians] attached to the brigade were killed before its surrender to the Suiyuan [forces] on December 10 at Ulanhua (southwest of Tamiao; all but a few hundred of Wang Ying's forces have now surrendered, but Li [Shou] Hsin with some 10,000 Mongolian and Manchukuo "irregulars" is at Changpei; about one quarter of Teh Wang's forces, which consisted of about 4000 Mongol cavalry, surrendered to the Chinese at Tamiao on December 11 (the actual date of capture); the casualties and captured and surrendered of the "irregulars" total to date about 7000; Pailingmiao is now garrisoned by between 2000 and 3000 Shansi and Suiyuan forces, supplemented by a Nanking anti-aircraft unit of about 100 men.

According to the same source," "irregulars' military expedition was planned, officered and financed by Kwantung army. All military units received their pay direct from Kwantung army. Expedition was commanded by former colonel in Kwantung army who was killed at Tamiao". Surrendered officer is also alleged to have stated that the Kwantung army donated 12 planes, 5 tanks, 3 trucks and about 100 lorries, ammunition and provisions.

The above information may be of doubtful value since it originated from a surrendered "irregular" officer and it is therefore submitted for what it may be worth. It seems improbable, even with the affair in Sian, that any effective attack can be launched on Suiyuan by the "irregulars" in the near future.

By mail to Tokyo.

LOCKHART

893.00/13779: Telegram

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

NANKING, December 17, 1936-4 p. m. [Received December 17-1:30 p. m.]

357. General Chiang Ting Wen, who was among those detained by Chang Hsueh Liang in Sian, has been released and is expected shortly in Nanking with a personal letter from General Chiang Kai Shek. Sources close to Kung express optimism over the situation. There has been a noticeable division of opinion here as to method of handling the matter, the younger army group believing in forceful measures while older group, and this includes Kung and Madame Chiang Kai Shek, favor negotiation.

Sent to the Department; code text to Peiping by mail.

JOHNSON

893.00/13782: Telegram

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

NANKING, December 18, 1936-noon. [Received December 18-8:45 a. m.]

360. I have just seen Dr. Kung and have conveyed to him our Government's concern over safety of General Chiang. Dr. Kung asked me to express to the President and to you his thanks. Dr. Kung expressed himself as hopeful of a solution which would result in the safety of General Chiang although he admitted that the situation was still very serious. He told me that he expected General Chiang Ting Wen in Nanking this morning.

Sent to the Department; code text mailed to Tokyo and Peiping.

JOHNSON

893.00/13787: Telegram

The Ambassador in Italy (Phillips) to the Secretary of State

ROME, December 18, 1936-noon. [Received December 18-9:30 a. m.]

536. Count Ciano told me yesterday that in view of his long friendship with Chang Hsueh-liang he had sent him a personal message appealing to him to free Chiang Kai Shek. He allowed me to read this message which, though in friendly terms, was strong. He told me furthermore that the Italian Ambassador in China had been instructed officially to communicate a similar message to Chang Hsuehliang which in part pointed out the risks of any cooperation with Moscow on Chang's part.

Although Ciano did not indicate that he had any proof that Chang was acting under the influence of Moscow, the Minister said he was convinced of it. He also felt sure that Chang himself had been governed by his personal hatred of Chiang Kai Shek.

In the only press comment on the situation the Government spokesman in an editorial on December 17th indicates that Moscow had a hand in the capture and is covering up its own traces by accusing Japan of inspiring the revolt. He maintains that the policy of seeking an agreement between Japan and China is the only wise course for China. PHILLIPS

893.00/13786: Telegram

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

NANKING, December 18, 1936-4 p. m. [Received December 18-10:30 a. m.]

361. Following is based on press releases at Nanking.

Donald has returned by plane to Sian to continue mediation efforts. T. V. Soong and Madame Kung are attending a Soong family conference at Nanking with Madame Chiang and Kung regarding safety of Chiang. Yu Yu Jen, aged statesman, telegraphed Chang Hsueh Liang and Yang Hu Cheng to send delegates to meet him at Loyang for discussion for settlement of the issue. Chang Hsueh Liang telegraphed wife of Chen Cheng, Vice Minister of War, that Chen is safe. Rebels have started attack on Government troops moving against Sian, destroyed railroads and bridges west of Huahsien. Kung stated in a broadcast in English that Chiang was in good health, that the new life movement had aroused national consciousness against internal strife which would weaken defense of Suiyuan, that strong action against rebels would prove solidarity of China, that Government will proceed with vigor along policies formulated by Chiang, that a new national unity has arisen out of the crisis. Kung further stated: "Our attitude is that the personal safety of Government's one man should not be allowed to interfere with normal conduct of the Government." Government mandate ordered Ho Ying Chin to launch punitive campaign against Chang and appointed him Commander-in-Chief thereof. General Chiang Ting Wen arrived Nanking 11:45 a. m. He reported Generalissimo well and all other Government leaders safe. Kao Tsung Wu and Suma continue Sino-Japanese conferences in Nanking.

To Peiping by mail.

President of the Chinese Control Yuan.

JOHNSON

893.00/13794: Telegram

The Acting Secretary of State to the Ambassador in China (Johnson)9

WASHINGTON, December 18, 1936-7 p.m.

84. 1. This afternoon the Counselor of the British Embassy called at the Department and left an aide-mémoire stating that it has occurred to the British Government that if Chang Hsueh-liang could be assured of his own personal safety he might be persuaded to release Chiang Kai-shek: that for instance Chang might be removed by air to Shanghai or to Tientsin whence he could leave China; and that possibly there could be made locally arrangements to this effect. The British Government inquires whether the American Government would cooperate and states that the British Government is also taking the matter up with the Japanese, French and Italian Governments. The aide-mémoire concludes with the statement that the British Government are only offering their good offices in the hope that they might be of assistance in the carrying out of any arrangements which may be reached by the parties and that they do not propose any intervention in negotiations that may be taking place.

2. Please confer with your British colleague, discuss the practicability and expediency of action on the line suggested, make no commitment on behalf of your Government, and report promptly with your comments. In your conversation with your British colleague, you should discuss not only possible advantages and possible disadvantages and difficulties which would attend procedure such as the British Government suggests but any possibility of measures whereby foreign governments might contribute helpfully and without impropriety toward averting tragic developments and further political disturbance potential within the Sian situation.

MOORE

793.94/8510

The Consul at Harbin (LaMont) to the Ambassador in China

No. 291

(Johnson) 10

HARBIN, December 18, 1936.

SIR: With reference to the deadlock in the Nanking negotiations, and the recent coup at Sian, I have the honor to submit an estimate of the way in which people of the Chinese race here would react to a Sino-Japanese conflict.

Notation by the Chief of the Division of Far Eastern Affairs: "Approved in principle by the Acting Secretary and the President."

10

Copy transmitted to the Department by the Consul at Harbin in his despatch No. 451, December 18; received February 19, 1937.

It is difficult to obtain information concerning the reactions of the native population. For one thing, there is no officer stationed here who speaks the Chinese language, and even if there were, he would experience great difficulty in frank and open conversation with thinking Chinese because they would be afraid to risk the danger of being seen in the company of a foreigner. Although frequently "Manchukuo" officials are met in a social way, these people are either renegades or mere figure-heads, and a frank expression of opinion from them would not be forthcoming even if one had the temerity to embarrass them with questions. The local Chinese language press, of course, is useless, as it is completely owned by Japanese, and under military censorship. There is not a single inch of printed material which is free, directly or indirectly, from Japanese propaganda.

From such contacts as have been possible, however, it has been disclosed that the native population almost unanimously would welcome the return of Chinese control. This is in spite of increasingly favorable economic conditions, a stable currency, perhaps a lessening of extortion on the part of officials, and a uniform rate of taxation. It is natural that the rural population should welcome the return of the Chinese, for not only have the farmers been the last to benefit by the "improvements", but they have received brutal and soul-killing treatment far in excess of the city dwellers. Their farms have been destroyed and they have been forced into concentration areas, as part of the drive against outlaws; in many cases they have been driven off their farms, or have received but a fraction of their value to accommodate Korean and Japanese immigrants; their traditional cash crop, poppy, has been made illegal except in a few areas; and the 1930-34 economic depression in Manchuria was intensified because of the chaotic conditions which prevailed, and in their ignorance the farmers are apt to blame the Japanese for all the misfortunes which have befallen them.

Most important of all, of course, is the inherent hatred any race has for alien dominance. This has been noticed in many parts of the world, where the rules frequently were more tactful with the native population than has been the case in Manchuria. This dominance involves a loss of "face" which is almost insupportable, and which causes even the relatively well-to-do city merchants to look with longing for the return of a government of their own kind, even though they have received some economic benefits from the present regime and have not suffered the extreme hardships of their compatriots on the farms.

If the recent coup in Sian should lead to extensive Sino-Japanese hostilities, however, there is no reason to suppose that the present authorities would experience any particular difficulties with the population. For one thing, the people are to a large extent disarmed, and

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