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The Minister in China (MacMurray) to the Secretary of State

324. My 277, July 7, 5 p.m.59

The present so-called governing cabinet continues futile, existing without power even in the capital. Its only important occupation is the quest of money. On June 5th it requested release of $1,000,000 [Page 671] for pay of the Peking garrison and police and, on July 10th, of $300,000 maintenance of peace and order from Customs funds. Interested Legations deny that any interest in the disposition of these funds after stipulated obligations were safeguarded but by decision of the Inspector General only the second sum was paid to the Chinese Government. On July 20 the cabinet requested release of [$]50,000 per month for administrative purposes, to which no reply has been made. It is reliably reported that the Government is endeavoring to arrange for the issue of $25,000,000 of bonds secured on customs revenue now considerably in arrears. This I intend to protest against with interested colleagues as unjust discrimination against prior foreign obligations having general security.
Marshal Wang Huai-ch’ing, commander in chief of the Metropolitan forces, has tendered his resignation. He has been hounding Inspector General for funds which have been refused. This appears to be mainly for the purpose of securing money for the maintenance of his troops; may also be in protest against rival activities of a Fengtien appointee who is commander of gendarmerie and obeys only Chang Tsung-ch’ang.60
Military affairs seem to be at deadlock on the Hunan-Shansi and Nankow battle fronts.
Yang Wen-kai,61 who is Sun Ch’uan-fang’s62 representative in the cabinet, left Peking July 30th, which may indicate that Sun is withdrawing his support from the Peking regime.
Execution by order of Chang Tsung-ch’ang without pretense of trial of Chinese editor August 6 exemplifies negligibility of governmental authority.
  1. Not printed.
  2. Tupan of Shantung.
  3. Minister of Agriculture and Commerce in the Regency cabinet headed by Admiral Tu Hsi-kwei.
  4. Tupan of Anhwei, Chekiang, Fukien, Kiangsi, and Kiangsu.