793.94/7915: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received May 25—10:30 a.m.]
259. 1. Chinese officials continue to deny that General Sung Che Yuan has entered into any important agreement with the Japanese. They claim that the Japanese are asking for permission to station troops at Fengtai, as well as at Changsintien on the Peiping–Hankow Railway. However, the Japanese military have already taken over a large tract of land at Fengtai and are rapidly constructing buildings on it. It is possible that Hsiao Chen Ying has presumed to make an agreement with the Japanese without reference to Sung.
2. A serious split has allegedly occurred among subordinates of Sung. Sung’s division commanders have long disliked Sung’s civilian subordinates who negotiated with the Japanese. This feeling has come to a head with the resignation of General Shih Ching Ting from the post of Chief Counselor of the Hopei-Chahar pacification headquarters. (Reference paragraph 2 of Embassy’s 201, April 20, 2 p.m.; and subdivision C of paragraph 3 [2] of Embassy’s 243, May 15, 3 p.m.) The divisional commanders are favorably disposed toward Shih and partly for this reason Hsiao Chen Ying, Chen Chueh Sheng, and other members of what is now referred to as the Kirin clique brought about Shih’s resignation through making misrepresentations to Sung. One official believes that the outcome must be that either (1) Sung will rid himself of these civilians or, (2) the civilians will effect the removal of Sung and act for the Japanese in establishing a regime. This second possibility may have motivated Hsiao in entering into agreements with the Japanese of which Sung is unaware. Sung is said to be attempting now to quiet the dissatisfaction of his military subordinates.
3. The attitude of these civilians is indicated by Chen Chueh Sheng’s interview on May 22 to the United Press correspondent in which he said that the National Government is wholly to blame for the smuggling situation in North China, and by an address made a few days ago to Hopei Province magistrates by Pan Yuan Kuei, Chief of the Department of Political Affairs of the Hopei-Chahar Political Council, the address being primarily a veiled attack on Chiang Kai Shek.
[Page 168]4. This so-called Kirin clique is understood not yet formally organized. It allegedly includes General Chin Teh Chun, the Mayor of Peiping, General Men Chih Chun, Chairman of the Reconstruction Committee, and General Fu Chan Kuei, Chief of Staff of the Hopei-Chahar pacification headquarters, presumably because they fear they could not otherwise hold their jobs.
5. Reference subdivision D of paragraph 2 of Embassy’s 243, May 15, 3 p.m., the Hopei-Chahar Political Council issued an order May 23 designating the Hopei Provincial Bank as the sole bank of issue in Hopei and Chahar. This runs counter to the monetary policy of the National Government.
[6.] The Embassy has no information about increase of Japanese forces in addition to that contained in Embassy’s 252, May 20, 5 p.m. Lieutenant General Tashiro, commanding North China Garrison, arrived at Tientsin, May 19.
7. Many rumors are current and the situation is not clear. Leading educators of Peiping met May 22 to discuss the desirability of a public expression of opinion on the situation but did not act because of their feeling that they did not know enough of the facts about the situation.
8. According to one report, the Japanese are threatening Sung Che Yuan with a new “autonomy movement” if he does not more quickly meet their wishes, the new movement to be an extension of Yin Ju Keng’s sphere to include Peiping and Tientsin.
9. According to an informed official, Japanese recently visited post offices in Kueihwa and Paotow in Suiyuan to investigate the organization and administration of those offices. There are unconfirmed reports of a concentration of Japanese Manchukuo troops in northern Chahar.
By mail to Tokyo.