793.94/7943: Telegram
The Counselor of Embassy in China (Peck) to the Secretary of State
[Received June 5—3:56 a.m.]
167. Cabinet official informed me confidentially June 4, 6 p.m., that Kwangtung does not wish to oppose the National Government actively but that Kwangsi is exerting great pressure to that end. Informant stated that Kwangsi is being supplied by Japan with munitions on liberal terms and with advisers. Object of Japan is to create disunion in China and destroy ability of the National Government to resist Japanese domination. Informant conceded the possibility that the two Kwangsi leaders, while accepting Japanese assistance in opposing Nanking, may have secret intention of using this military aid ultimately against Japan itself. (I infer he foresaw possibility the Chinese Government might accept Kwangsi challenge to lead nation against Japan.) He said Japanese tactics are exemplified by recent disclosures to the Government by Fu Tso Yi, Provincial Chairman of Suiyuan, of secret offers made to him by Japanese military who promised munitions and money in exchange for openly declaring independence or secretly arranging to permit Japanese military dispositions in Suiyuan in preparation for future domination of Mongolia and Japanese hostilities with the Soviet Union. If second course were adopted Fu would be allowed to issue violently anti-Japanese manifestoes. Informant implied that the Kwangsi manifesto demanding that the Chinese Government fight Japan accordingly did not necessarily irritate the Japanese. Informant felt that Fukien is a danger spot of Japanese intrigue and was greatly depressed by the impossibility of foreseeing where Japan’s next attack would be. He insisted Japan does not want to deal any mortal blow to China nor goad China [Page 195] into open war but wants rather to wear down China’s powers of resistance through continual undermining.