793.94/7075: Telegram

The Second Secretary of Legation in China (Atcheson) to the Secretary of State

169. 1. I learn from an authoritative and highly placed source that Sung Che Yuan was relieved because he expressed determination to defend his territory against the Japanese and that while his dismissal could not be avoided the government entertains grave fears that it may precipitate a declaration by Chen Chi Tang of the independence of Kwangtung and Kwangsi, ostensibly to set up an anti-Japanese Government in the southwest but with the secret support of the Japanese. At a meeting of government ministers yesterday fears were also expressed that if Chen revolted as an alleged anti-Japanese gesture the students and younger elements in Nanking might cause civil disorders. This fear I consider greatly exaggerated.

2. Chen recently telegraphed Wang Ching Wei pledging his support but according to an official of cabinet rank the government is apprehensive that Chen’s hatred of Chiang Kai Shek is so great that he may not resist the present opportunity to attempt what he might believe would be a fatal blow at Chiang and the incumbent régime in Nanking. This official states that Hu Han Min left Canton following the murder of one of his henchmen because he foresaw a separatist move and wished to disassociate himself from it, and that since his departure Chen has been rapidly displacing Hu’s adherents in official life. Fears of the alienation of Hunan are less grave, the present expectation [Page 266] being that, in case of an open break between Canton and Nanking, Hunan will not defy the National Government but will not render it assistance.

3. With the appointment yesterday of Wang Ke Min95 as acting chairman of Peiping Political Affairs Readjustment Council it appears that the center of Sino-Japanese discussions concerning Hopei will again shift to Peiping.

Despatched to Legation and Department.

Atcheson
  1. Director of the finance division, Peiping Political Council, since 1933.