793.94/7344: Telegram

The Counselor of Embassy in China ( Lockhart ) to the Secretary of State

116. Embassy’s 114, November 3, noon. The Executive Yuan yesterday accepted the resignation of Yuan Liang from the Peiping Mayoralty and Sung Che-yuan has become Acting Mayor. This is almost certainly a direct result of the Japanese démarche described in the Embassy’s 105, October 30, noon. Mayor Yuan has notified the Embassy that he is leaving Peiping on the 3:05 p.m. train today.

A report is now in circulation that the Hsiangho affair may possibly be maneuvered so as to discredit Shang Chen and enhance the prestige of Sung Che-yuan. If this line of action is followed Shang will probably be the next to go.

Repeated to Nanking, by mail to Tokyo and Tientsin.

Lockhart