793.94/7663: Telegram

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

18. Embassy’s 17, January 14, 4 p.m.

In addition to appointments previously reported, Sung Che Yuan has appointed his own men to important posts in several other organizations which control revenue. These posts were previously held by appointees of Nanking.
The character of Sung’s regime is becoming increasingly autonomous in line with Japanese desires. A junior Chinese official under Sung states that the latter intends to retain all revenues of Hopei and Chahar, remitting none to Nanking, including postal and customs revenue. The local postal authorities received notice yesterday from [Page 11]Sung that revenue from the sale of revenue stamps should not be forwarded to Nanking. However, the local customs authorities have not yet received a comparable order.

Repeated to Nanking and Tokyo.