Office of the Historian

893.00/12946: Telegram

The Chargé in China (Gauss) to the Secretary of State

Peiping, February 7, 1935—2 p.m.
[Received February 7—6:25 a.m.]

66. From a source which I regard as both well informed and reliable, I learned that a decision was recently made by Chiang Kai-shek to effect the following changes in North China:

(1)
Yen Hsi-shan to come to Peiping in about March as chairman of the branch Military Council. After his arrival, General Ho Yingchin, Minister of War, now head of that Council, to return to Nanking.
(2)
The Peiping branch Political Council to be dissolved, and General Huang Fu not to return to Peiping but to remain at Nanking as Minister of the Interior.
(3)
Most of the former Mukden troops [in?] the north to be transferred to the region of Ichang, on the Yangtze. Chang Hsueh-liang [Page 44] to move his headquarters from Hankow to Ichang and to engage in the campaign against the Communists in Szechwan.

2.
From the same source I learn Chiang Kai-shek will remove his headquarters from Nanchang to Hankow, where he can direct the campaign in Szechwan and at the same time be prepared to deal with the Southwest if necessary. No rapprochement between Nanking and the Southwest having actually been effected.
3.
The appointment of Yen Hsi-shan as the principal Government representative in North China would place Sino-Japanese affairs in this area in the hands of an official of known Japanese leanings. I am told that the appointment has Japanese approval.
4.
I have confidence in the information given by my informant but at the same time I should report that there are disinterested Chinese observers in whose judgment the Legation also has confidence who do not believe that Yen has been or can be persuaded to leave Shansi Province and take up a post at Peiping.
5.
If the changes outlined in paragraph 1 are effected they may be regarded as further indication of a gradual yielding by Chiang Kaishek and his group in the National Government to Japanese pressure. The changes would of course be accompanied by an extensive replacement of officials and the shifting of troops.
6.
General Chiang Kai-shek has recently left Nanking for Kuling and Nanchang and it is reported that he may fly to Chungking. I consider that for the present the Japanese pressure at Nanking will be somewhat relaxed and that the Japanese will be content to see the situation move slowly but steadily in the direction they desire with a more conciliatory and friendly attitude on the part of the Chinese leaders as shown in General Chiang’s press interview reported in the Legation’s 60, February 3, 3 p.m. We may expect to see the gradual replacement of officials at Nanking by persons acceptable to Japan such as General Huang Fu who has been appointed Minister of the Interior and has also been mentioned for the post of Minister of War. And it may be anticipated that at an opportune moment China may be persuaded to find occasion to withdraw from the League and to dispense with the services of the League advisers. Both Japanese and Chinese leaders probably realize, however, that the readjustment in Sino-Japanese relations must be most gradual.
Gauss