893.00P.R.Mukden/21

The Consul at Mukden (Myers) to the Minister in China (MacMurray)29

[Extracts]
No. 186

Sir:

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The hoisting of the Nationalist flag on December 29th was the forerunner of various changes in the Government, most of them nominal, which are to be carried out as preparations therefor are made. On January 12th the Political Affairs Committee—the old Peace Preservation Council with another name—was organized with General Chang Hsüeh-liang at its head and the high military and civil authorities adopted their new titles in conformity with the Nationalist Government organization. No change in personnel has been made as a result of this change in government and the actual administration of the Government will no doubt follow familiar lines. Two changes of note are the abolishment of the Provincial Assembly and of the office of Taoyin. It was also announced that courts will henceforth be guided by the codes of law promulgated by the Nationalist Government.

The only change in the military situation was the withdrawal of a large part of the Fengtien forces from the Shanhaikuan-Luan River section although it is understood that this Government is still desirous of retaining Chinwangtao within its sphere.

Negotiations in regard to the operation of the Peking-Mukden Railway and the return of rolling stock made progress, it was reported, but no final settlement has been reached. Some rolling stock was returned to the railways within the Wall.

The new kerosene oil tax of $1.00 per case was enforced from January 1st but the companies refused to pay the tax direct or cooperate in its collection as desired by the Special Kerosene Tax Bureau. As a final step the Bureau threatened to seize all oil stocks in Chinese territory at the end of January and has actually carried out the threat in a few cases. According to instructions from Nanking, the oil tax was to be abolished on February 1st but so far no proclamation to this effect has been issued.

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Nominal changes in the machinery of government occurred on January 12th in compliance with orders from Nanking. General Chang Hsueh-liang assumed the title of Chief Commander of the [Page 138] Northeastern Frontier Army and Generals Chang Tso-hsiang and Wan Fu-lin of Vice Commander of this force. The organization of the Fengtien Provincial Government Commission, composed of eleven members with Civil Governor Chai Wen-hsuan as Chief Commissioner (the new title), was announced on the same day. The Northeastern Political Affairs Committee—the Peace Preservation Council under another name—also came into existence on January 12th. Its membership comprises the following: Chang Hsueh-liang, chief of the Committee, and Chang Tso-hsiang, Chang Ching-hui, Wan Fu-lin, T’ang Yu-lin, Fang Pen-jen, Chai Wen-hsuan, Wang Shuhan, Liu Shang-ch’ing, Liu Tse, Mo Te-hui, Yuan Chin-k’ai and Shen Hung-lieh. With the exception of Fang Pen-jen, these men are all members of the Fengtien Party. It may be added that according to press reports the Nanking Government desires to abolish this Committee which, however, is opposed by General Chang on the ground that it is needed here in view of the peculiar situation.

The formal inauguration of the new Government, it may be added, took place on February 4th.

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It may be mentioned here that Fang Pen-jen, the representative of the Nanking Government, arrived here on January 26th. His visit was primarily in connection with the inauguration of the Nationalist Government system at Mukden.

According to Chinese in close touch with the Government, the present tendency is toward closer cooperation with the Nanking Government. No doubt the elimination of Yang Yu-t’ing and Ch’ang Yinhuai is a contributory factor in this development. The Government, it is reported, has conceded many points to the Nanking representatives. Such outstanding questions as the operation of the Peking-Mukden Railway, the return of the rolling stock and the evacuation of the Shanhaikuan-Luan River section are understood to be near a settlement. Concerning the orders issued to the post offices and other Central Government Administrations to submit statements of their surplus funds, etc., it has been learned on good authority that General Chang sent a secret telegram late in the month stating that interference with these administrations will cease. The Nanking instruction to abolish the kerosene oil tax and native customs offices is under consideration and in the opinion of Chinese compliance is to be expected. The important Communications Commission, as built up by Ch’ang Yin-huai, will probably be reorganized if not eventually abolished. Certainly the Central Postal Administration created by the Commission is an anomaly.

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I have [etc.]

M. S. Myers
  1. Copy transmitted to the Department without covering letter; received March 2, 1929.