File No. 893.01/64
Minister Reinsch to the Secretary of State
Peking, January 3, 1916, 7 p.m.
The situation is regarded as more serious from the point of view of the Central Government. While no systematic organization of the opposition has as yet been created outside of Yunnan and Kweichow the continued existence of disaffection is likely to encourage opposition elsewhere. Yangtze merchants lately quite in favor of the monarchy are now blaming the Central Government for the prevalent business depression. Feng Kuo-chang, while loyal to the President, impliedly reserves independence of action. The fatalistic unanimous opinion which hitherto favored the President may work to his disadvantage should the disaffection show positive strength.