File No. 893.01/96


Feeling of greater confidence prevails. The realization of the fact that the revolutionists are without united policy and that no possible presidential candidate could command general allegiance is making leaders of all factions consider the temporary retention of Yuan. Negotiations with the southern provinces are going on, which the fear of Japan [tends to?] accelerate. Yuan himself is discouraged and there is fear that he might lose sense of responsibility if pressure should increase.

Nanking reports considerable unrest and rumors of impending declaration of independence. Declaration of independence has acquired a special, not an actual separatist design, but the determination to be specially consulted in negotiations for reconstruction.