893.00/13508: Telegram
The Consul General at Canton (Spiker) to the Secretary of State
Canton, June 1, 1936—10
a.m.
[Received 8:35 p.m.]
[Received 8:35 p.m.]
Following comments constitute part 2 of my telegram of May 31, 10 p.m. Document purporting to be Hu Han Min’s will believed by local observers to have been formulated on the insistence of Pai Chung Hsi and, in less degree, of Li Tsung Jen, because of their [Page 185] personal animosity toward Chiang, Pai being considered as chiefly responsible for wrecking of any plans for rapprochement between Southwest and Nanking at this time.
- 2.
- Reference is made to those portions of this office’s political reports for December, 1935, and subsequent months7 concerning Japanese relations with the Kwangsi and Kwangtung leaders. Blowing up of railway bridge near Tientsin on May 29 has led to general local belief that Japan is once more following its formula of creating a major incident in the North whenever Nanking appears on the eve of possible rapprochement with the Southwest. In this relation see the second paragraph on page 6 of this office’s political report for April last.8 Marshal Chen is reported as favorable to closer cooperation with Nanking but under the pressure from Kwangsi seeks to remain on the fence, playing Kwangsi with Nanking. Recruiting is actively going forward in Kwangsi and its military are now seeking to purchase large number of heavy motor trucks for early delivery. Such maneuvers are viewed with suspicion as evidence that the province is relying on some strength other than its own or Kwangtung’s.
- 3.
- Kwangtung leaders have not yet been able to secure required permission from Nanking to ship 20,000,000 standard dollars to London as means for stabilizing local currency. Central Government reliably reported to be insisting that Kwangtung authorities first announce total of banknotes issued, that all unissued notes be placed in control of a newly established local currency board on which bankers, merchants, et cetera, are adequately represented, and third that the proceeds of the sale be used solely for the stabilization of Kwangtung currency. Steady decline of local currency during the last few days is causing great alarm and there is fear of a crash unless local authorities soon accept Nanking’s help on its own terms. Transmitted to Department, Peiping, Nanking.
Spiker