File No. 893.00/2893
The Minister in China ( Reinsch) to the Secretary of State
Political affairs in Peking have reached a stage of deep degradation. …
The military clique are attempting to make the War Participation Bureau the center of their influence on the Government. General Tuan is now at its head. It is given control of business relating to finance, natural resources, and police over the heads of the powerless ministries. It uses Japanese financial support and debauches Government finances by corrupt expenditure on a vast scale. Twenty-million-yen loan presumably concluded [will not be made public?]. Larger sum under consideration for immediate action involving Japanese control of the army, entire Chinese military establishment, military training arsenals, and ammunition. General Hsü Shu-cheng, the chief manipulator, is to be sent to Japan to conclude this matter. Other arrangements are incidental to this, such as loans mortgaging natural resources in forests and mines as well as Government agencies like telegraph system, also the monopolistic trading company reported on in telegram August 29,1 and the unsound gold-note scheme which is being attempted contrary to obligations to other nations. In all respects, the methods of this clique are insolent and ruthless including an absolute suspension of all free discussion in the newspapers which are terrorized through frequent police interference. Eight papers recently suppressed because printing details of loans concluded with Japanese. This organization is attempting to fix upon the country military rule under Tuan. While supposedly devoted to prepare for participation in European war, only aim War Participation Bureau appears to be personal enrichment of clique and their control of country through corrupt and ruthless means. Troops belonging to the bureau were recently on their way to Fukien to fight against the South but were stopped by Governor Li Shun. The bureau has spent million[s?] in corrupt practices during presidential election and vice-presidential election now pending. This organization involves a denial of every principle of national and international action for which Allies are fighting; it involves the suppression of opinion, secret agreements, lack of public responsibility and the supremacy of military power. This organization is devoid of all moral and actual authority in China as is the Central Government which it controls. It is not fulfilling any of fundamental duties of Government, being powerless to command, to levy taxes, or to protect the citizens. The clique maintain themselves by buying with foreign money the support of the most corrupt among the military leaders. That they cannot be got rid of is due solely to foreign support. The country from end to end is suffering under their abuses but organized opposition is prevented by sinister outside influence which works with corrupt elements wheresoever found and paralyzes sound action.
[Page 113]The new President is desirous of a reunion of the country yet there is danger that he will fall into financial dependence upon the military clique. However, there are many tentatives for reunion. The Commonwealth Party under Liang Shih-yi and Chow Tze-chi is opposing the military. They have so far blocked election of General Ts’ao K’un as Vice President because the election of a Northern military man would definitely close the door to an understanding with the South. Elements inclined to cooperating [?] with them are Governor Li Shun and the other Yangtze governors, commercial bodies in China, and the moderate elements in the South. It has been suggested that committees from both parties should meet in order to make laws and arrangements for a new united parliament. All this takes time, the forces of corruption work day and night.
The tentatives toward reunion would be greatly assisted if in the spirit of the President’s telegram October 10, to President Hsü, the hands of the President of China and of leaders striving for reunion would be strengthened by moral support from America, from England, and the other Allies. Corrupting and demoralizing action exercised through the Peking clique needs as a counterbalance publicity and open support of all tentatives for reunion together with the convocation of a national parliament. Only this can prevent irremediable injury through the squandering of public resources and the mortgaging of the future of the country by an irresponsible clique which holds none but the most formal political authority.
That its authority to dispose of the destinies of China is supported only on the fact of its having locally succeeded to the national authority of the Chinese Government brings up the question how long this clique devoid of real authority is to be recognized as the Government of China and how long the powers are to sanction the paying over to it of the revenues belonging to the whole nation. … To stop this nefarious business, a number of steps would be necessary:
- 1.
- There must be complete and world-wide publicity. In the open light, the majority of these projects could not have been born at all. At present the effort is not only to suppress absolutely all information about the dealings affecting the rights of all China, but to suppress also constructive proposals such as that of President Wilson contained in his recent telegram to President Hsü. When the leading British paper in China recently made the tentative suggestion that America and Great Britain could best show the Chinese Government the way out of its difficulties through an impartial mediation, counter efforts were immediately made by Japanese officials; for instance, Japanese Consul at Nanking called on Governor Li Shun and stated his confidence that the Governor would certainly consider the proposal of the Shanghai paper as an unwarranted interference by western people in the internal affairs of China.
- 2.
- The Japanese Government should understand without delay that the methods and aims of its present action in China are viewed with the severest disapproval and that the results of such action cannot be accepted on the basis that unconscionable or monopolist arrangements will have to be canceled and rightful relations established after the war in the joint interest of the Chinese people and all of the nations having relations with it. The Japanese Government [Page 114] has avowedly acted as a trustee of the Allied Governments and must therefore expect to make an accounting of its trusteeship.
- 3.
- In China it should be made immediately plain to politicians, the military, and the Chinese public, that the utilization of the War Participation Bureau, supposed to be working in the Allied interest, for purposes of personal and factional politics is thoroughly disapproved and that unless this organ confines itself to its proper work and the Chinese Government makes successful efforts to unite the Chinese nation under its authority, the continued recognition of the present Peking Government becomes questionable.
- 4.
- The immediate completion is essential of the arrangements contemplated for placing finances of China on a firm basis providing abundant means for justifiable purposes but eliminating so-called industrial loans diverted to corrupt intrigues.
I have the honor to request for guidance in a most difficult and dangerous situation, an expression of the policy of the President and the American Government for meeting a danger threatening the interests and the peace of the United States as well as the future of the Japanese and the Chinese people; and an intimation how far you desire me at this time to work for complete publicity of all arrangements affecting American and general interests and to intimate when occasion affords disapproval of actions tending to continue disunion and of the use of the War Participation Bureau for factional purposes. My European colleagues are equally, if not more concerned over the situation here. It is their opinion that but little can be expected from representations to the men controlling the present Government who are but puppets in hands of outside forces but that relief can be expected from[?] only when it is possible to talk frankly but in the strongest terms to the Japanese Government whose best interests are in fact also gravely endangered by the reckless policy hitherto pursued in China.