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793.94/8450: Telegram

The Acting Secretary of State to the Counselor of Embassy in China

(Lockhart)

WASHINGTON, December 21, 1936-4 p. m.

302. Your 616, December 16, 3 p. m.

1. The Department perceives no objection to Berger addressing an informal communication to the "Chief of Police, Peitaiho Beach" in regard to the robberies of American property.

2. With regard to the question raised in paragraph 2 of your telegram under reference, the Department concurs in the view expressed by the Embassy that no useful purpose would be served in discussing with the "East Hopei Anti-Communist Autonomous Government" a matter affecting its revenue. The Department feels, therefore, that it is not advisable to make any representations to that regime in regard to this matter.

For your information it may be observed that informal efforts on the part of American consular representatives with a view to protecting American interests in the territory controlled by the "East Hopei Anti-Communist Autonomous Government" would not warrant any implication of recognition by this Government of the regime in question.

3. As a matter of record, it is suggested that the Embassy give consideration to bringing, at an appropriate time and in an appropriate manner, the case to the attention of the Chinese Foreign Office.18

MOORE

893.00/13805: Telegram

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

NANKING, December 21, 1936-5 p. m. [Received December 21-8:25 a. m.]

369. T. V. Soong has sent a holograph letter from Loyang to Young Marshal demanding that he release Generalissimo without delay. He enclosed editorial "Open Letter to Sian Troops" from Ta Kung Pao, December 18, copies of which are also being scattered among Sian forces by airplane. Editorial contains following points:

1. Generalissimo should be escorted back, not merely allowed to escape from Chang; 2. He need not leave but may remain in Sian to direct national affairs from that place but this must be approved

18 The Embassy in China, in its despatch No. 958, January 5, 1937, reported that "two shipments of petroleum products have recently been made by the Standard-Vacuum Oil Company to its agents in the East Hopei area without molestation and that, as the situation now stands, Mr. Berger does not consider that any action by the American authorities is required." (793.94/8514)

by him and concurred in by repentant mutineers in a circular telegram; 3. No guarantees other than integrity of Generalissimo and public opinion of nation should be sought for their pardon if they repent and their proposals will be adopted on his release if he deems them useful; 4. At request of Generalissimo punitive action is temporarily postponed so that they may prove their loyalty. Rebels are also reminded of folly of talk of national salvation when all Government and military machinery has been halted by their action.

Resumption of Government bombing air raids on December 20 has caused heavy losses and stopped rebel movements near Sian. Sent to the Department; by mail to Peiping.

JOHNSON

893.00/13808: Telegram

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

of State

PEIPING, December 21, 1936-5 p. m. [Received December 21-11:35 a. m.]

629. 1. The Shensi revolt has had the effect, perhaps temporarily only, of suspending the agitation of students at Peiping, although it is understood that rather pronounced differences have arisen among them on the question of the advisability of despatching a punitive expedition to Shensi. Although professing to believe that a more aggressive policy towards Japan is needed, the sympathy of the students on the whole appears to be with Chiang Kai-shek notwithstanding the huge demonstration staged at Peiping on December 12 (see Embassy's No. 604, December 13, 1 p. m.)

2. There are signs that Yen Hsi Shan may emerge from the present trouble with increased power and prestige. If Chiang Hsueh-liang is finally ousted from authority there would seem to be a good prospect for the expansion of Yen's authority since it is believed that he might be satisfactory to both factions if a drastic reorganization of the military establishment in the northwest area should become necessary as now seems inevitable. The defection of Yu Hsueh Chung from Lanchow, reports of which are persistently reported but not yet confirmed, are most disturbing as he has long been one of Chiang Kaishek's most steadfast adherents.

3. Reports, apparently well-founded, continue to circulate that defections from the "irregulars" in Suiyuan to the Government side are occurring almost daily.

By mail to Tokyo.

LOCKHART

I am inclined to vouch for the authenticity of the above telegram, but [sic] I believe it to be the circular issued by Chang since it was obtained from a northeastern army spokesman in Peiping. The spokesman is authority for the statement that the terms "startling changes in the international situation" and "nations are intriguing between one another" relate to the German-Japan-Italian agreements. Inasmuch as text of telegram has apparently not been published here, I suggest that it be not given out for publication.

Seemingly authentic news releases from Canton indicate that Li Tsung Jen, Pai Chung Hsi and Li Chai Sum and others in Kwangsi have pledged their complete support to Nanking Government. It is believed that Chang Hsueh-liang expected sympathy from them in his objectives.

By mail to Tokyo.

LOCKHART

893.00/13806: Telegram

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

of State

PEIPING, December 21, 1936-3 p. m. [Received December 21-5: 04 a. m.]

628. 1. The Japanese military authorities in North China continue to maintain an attitude of watchful waiting vis-à-vis Shensi revolt. Contrary to the general practice they are giving out but few interviews and these are quite moderate in tone. The representative of Sung Che Yuan who called at this and some other Diplomatic Missions (see my No. 612, December 15, 3 p. m.) did not call at the Japanese Embassy. 2. It does not appear that either Japan or Russia had any direct connection with instigating the Shensi revolt. It may ultimately develop that the revolt arose in large part either from petty jealousies among the military leaders, short rations and back pay, false information circulated among the troops, or lack of understanding of policy of Chinese Government in dealing with Japanese situation.

3. The longer Chiang Kai-shek is detained the more complicated the situation will become. It is becoming increasingly evident that Chang Hsueh-liang is not the only one with whom the Nanking Government will have to deal. Other recalcitrant military leaders in the Northwest will necessarily have to be brought back into line.

By mail to Tokyo.

LOCKHART

893.00/13804: Telegram

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

NANKING, December 21, 1936-4 p. m. [Received December 21-9:04 a. m.]

368. Shanghai's telegram of December 20, 4 p. m., especially paragraph 5.17

At my request Dr. Kung undertook on December 19 to send a telegram to Donald as from me asking if latter could make arrangements with the Young Marshal for evacuating American missionaries at Sian. I suggested that this be effected by airplane if possible and that other foreigners be included in the arrangement.

Repeated to Peiping, Shanghai, Hankow.

JOHNSON

893.00/13809: Telegram

The Consul General at Shanghai (Gauss) to the Secretary of State

SHANGHAI, December 21, 1936-4 p. m. [Received December 21-12:05 p. m.]

662. 1. Local interest today centers in activities of T. V. Soong at Sian where he is reported endeavoring in private capacity to effect release of Generalissimo and also in flight yesterday of General Huang Shao Hsiung to Taiyuan to enlist aid of Yen Hsi Shan in solving Sian crisis. Meanwhile Nanking Government appears to be maintaining firm attitude towards settlement of issues.

2. Japanese Ambassador Kawagoe who left Shanghai yesterday for Nanking under instructions to interview Chinese Foreign Minister will according to Japanese press reports express deep interest of Japanese Government in terms of any compromise that may be negotiated between Nanking and Sian, pointing out that Japan could not remain unconcerned should such settlement provide for adoption by Nanking of policy of cooperation with Communists to oppose Japan. At present however the Japanese continue to maintain an attitude of watchful waiting.

3. Local stock, bond and exchange markets remain steady and trade continues uninterrupted.

4. Repeated to Nanking by mail; to Peiping by airmail.

"Not printed.

GAUSS

893.00/13807: Telegram

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

NANKING, December 21, 1936-6 p. m. [Received December 21-11 a. m.]

370. Department's 86, December 19, midnight.

1. I communicated Department's message to British Ambassador this morning. He was without instructions from his Government and we will await further eventualities.

2. French Ambassador called upon me this morning and inquired about British proposal. Apparently French Government had completely misunderstood, for it described it as a proposal for the offer of mediation by the powers. I read to the French Ambassador Department's 84 of December 18, 7 p. m.; my 365, December 19, 11 p. m.; and Department's 86, December 19, midnight, and explained to the French Ambassador that the proposal contemplated merely offering Chang Hsueh-liang, Yang Hu Cheng sanctuary and safe conduct out of China after his [their?] arrival at a port, preferably Tientsin. I explained to him that both the British Ambassador and I were in agreement that it would be highly dangerous and very improper for us to offer any mediation under present circumstances.

5 [3]. Suma called upon me this afternoon and inquired regarding British proposal. I explained to him as I explained to the French Ambassador. Suma stated that his Government had not made up its mind but was seeking information and advice.

6 [4]. I called on the Minister for Foreign Affairs this afternoon to inquire concerning developments. He stated that Soong was still in Sian and that they hoped for some news tomorrow. I found them expecting Donald to arrive in Nanking this afternoon. There is no change in local situation. All are anxiously awaiting outcome of present negotiations.

Sent to the Department; code texts by mail to Peiping and Tokyo. JOHNSON

893.00/13811: Telegram

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

NANKING, December 22, 1936-11 a. m. [Received December 22-2:26 a. m.]

371. T. V. Soong accompanied by Donald returned to Nanking by air yesterday. It is believed that T. V. is returning to Sian today possibly accompanied by Madame Chiang Kai-shek.19 Neither Don

19 Mr. Soong, Mme. Chiang, and W. H. Donald left by airplane for Sian that day.

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