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

225. Chiang Kai-shek is expected in Paotingfu whither Chang Hsueh-liang is expected to go for a conference with him. T. V. Soong is also understood to be expected here in the North to attend conference.

Chinese appear still to hold Kupeikou and Western marches of Jehol where fighting has been going on. Spectacular collapse of Chinese defensive in Jehol is producing feeling of resentment against above-named leaders who are now on the horns of a dilemma. This leadership is, I believe, opposed to any attempt to dislodge Japanese from Jehol but public resentment may make them feel it necessary to take some such action. If they take action against Jehol Japanese will without doubt invade this area. If they do not take some such action popular resentment may succeed in disrupting Government.

Johnson