893.00/13556: Telegram

The Counselor of Embassy in China (Peck) to the Secretary of State

187. 1. We are authoritatively informed that: (1) negotiations are proceeding (a) on one hand between National Government and Chen [Page 209] Chi Tang and (b) on other hand between Kwangsi leaders and the Hunan and Kiangsi Provincial Chairmen acting for the Government; (2) negotiations with Chen[’s] representatives involving financial transactions and a current report that the Government has recently allotted him China dollars 13 million is “probably true”; (3) negotiations with Kwangsi representatives are being conducted at Heng-yang, Hunan, and Hsiung Shih-hui, Chairman of Kiangsi, is now in Hengyang for this purpose; (4) despite the published statements of Southwestern leaders and controlled Chinese press that Kwangsi and Kwangtung troops which penetrated into southern Hunan have been withdrawn south of Hunan border, considerable numbers both of Kwangsi and Kwangtung forces remain in Hunan and Kwangsi troops are “digging in” at Kiyang; (5) when Sun Fo29 visited Canton in May to attend funeral rites for Hu Han Min he narrowly escaped being kidnapped and held as hostage and reported plan of the Government to send, at present time, a delegation of high leaders to seek a settlement with the Southwest has been abandoned because leaders selected have declined the mission out of fear for their personal safety.

2. According to despatch from Hong Kong dated June 12, a British official concerned in the prosecution of Chinese suspected of implication in the attempted assassination of Wang Ching Wei and others, November 1, 1935, states that investigation has shown that the plot was designed to enable Southern leaders to seize political power and has “definitely established” that the Southwestern leader has accepted money and arms from the Japanese and the present Southwestern démarche is backed by Japanese who wish to divert attention from Japanese activities in North China.

3. According to a no less authoritative source, 18 gunboats of the Chinese Navy along the South China coast have been ordered to Nanking.

4. To Department and Peiping. Repeated to Hankow, Canton. By mail to Tokyo, Hong Kong.

Peck
  1. President of the Chinese Legislative Yuan.