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

825. Reference Shanghai’s October 29, 7 p.m. There would appear to be a number of causes for Soong resignation.

Dissatisfaction with treatment accorded him by Chiang Kai-shek.
Chiang insisted on allocation of some $20,000,000 for communist campaign although Government’s monthly deficit is reported $10,000,000.
Contrary to Chiang’s assurances to Soong that no changes in Foreign Ministry would be made prior to Soong’s return Lo Wen-kan was sent to Sinkiang 2 days before Soong’s return to China apparently because of Lo’s opposition to a conciliatory policy toward Japan.
Soong’s opposition to this policy of conciliation brought pressure from Japan partially directed through Huang Fu with whom Soong is alleged to have recently quarreled. I am informed that Ariyoshi74 and Sugimura75 have repeatedly warned Chiang and Wang Ching-wei they must get rid of Soong.
Japan was attempting to obtain from Soong a revision of duties favorable to Japan. Soong’s resignation will probably result in strengthening the position of those Chinese who favor a policy of conciliation towards Japan as a corollary of which it may be anticipated that China will look less towards the United States and the League for cooperation.
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It is as yet too early to estimate whether Soong’s resignation is of a temporary character. It is thought he will not continue as a member of the standing committee of the National Economic Council.

  1. Akira Ariyoshi, Japanese Minister to China.
  2. Yotaro Sugimura, former director, Japanese Bureau of League of Nations.