793.94/7941: Telegram
The Counselor of Embassy in China (Peck) to the Secretary of State
[Received 6:35 p.m.]
165. 1. National Government officials, including Vice Minister for Foreign Affairs, deny any declaration or threat of war against Nanking by the Southwest as reported by Domei from Canton, June 2, although it is true Southwest Executive Committee and Political Council on June 2, despatched a joint telegram to the National Government (a) protesting against increase in Japanese North China garrisons; (b) denouncing Japanese aggression; (c) expressing fear that Peiping and Tientsin are going the way of Manchuria; (d) pledging full support if the National Government resists the Japanese with armed force; (e) urging the National Government to “lead the nation in a fight against the aggressors”.
[Page 191]2. We are informed by one Chinese official in the confidence of high National Government leaders that the Domei report that National Government troops were massing on the Kwangsi and Kwangtung borders as a threat against those two provinces was designed as a smoke screen for an autonomous movement in southern Fukien which was now crystalizing, with Japanese assistance, as the result of activities of Formosans and certain “rebel” Chinese. He said that the concentration of National Government troops in areas bordering Kwangsi and Kwangtung was primarily motivated by this autonomous movement, presumably with a view to (a) suppressing it or (b) preventing its spread into Hunan and Kweichow whose loyalty has at times been open to some question. (Domei’s statement of troop movements, which he confirmed as being correct in general outline, was that 14 divisions are concentrated in Kiangsi, 5 divisions are [located?] in Hunan on the Kwangsi–Kwangtung border, and further units are being rushed from Chekiang to southern Fukien, the total numbering 350,000, not including air reserves said to have been concentrated in Kweichow although within Hengchow, Hunan.)
3. The stationing of troops on the Kwangsi border for the purpose of action in southern Fukien is difficult to understand and he said in this connection that though troop movements might also act indirectly to persuade the Southwestern leaders to adopt Nanking’s point of view concerning [apparent omission] which had been reiterated informally by the delegation of Nanking officials sent to attend funeral rites for the late Hu Han Min. The desiderata in this connection were reported by Domei as “demands” of Chiang Kai Shek: (a) abolition of Southwestern Political Council and Executive Committee; (b) placing of all Southwestern administrative organs under control of Nanking Executive Yuan; (c) incorporation of Southwestern troops into the National Government military organization; (d) unification of currency; (e) remittance to Nanking of national taxes; (f) appointment by Nanking of all high military and civil officials in the Southwest. According to the informants these were not demands but “suggestions” and the joint telegram sent June 2 by the Southwestern Political Council and Executive Committee was part of the process of bargaining between the Southwest and Nanking in connection therewith.
4. To Department, Peiping, Canton. By mail to Tokyo.