893.00/13577: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received June 27—10:45 a.m.]
207. 1. On June 25 General Chiang Kai Shek issued a press statement regarding the controversy with the Southwest, the salient features of which were the expressed willingness of the National Government to assist various provincial authorities in matters of administration and finance provided discipline and order are maintained. General Chiang in effect promised that if Kwangtung and Kwangsi leaders withdrew their troops into the respective provinces he would not prosecute them for what has occurred, nor order troops from other provinces into the two provinces named. He also reaffirmed his determination not to be a candidate for the office of President as established in the forthcoming constitution.
2. I have questioned members of the Cabinet regarding the Southwestern situation. The Minister for Foreign Affairs this morning analyzed the situation in brief as follows: the death of Hu Han Min deprived the Southwestern regime of its principal political prop and the present military venture is an attempt, through a specious appeal to a popular cause, to maintain the temper of the Southwestern Central Executive Committee and Central Political Council. Another object has been to remedy the desperate financial situation of the two provinces. The Minister for Foreign Affairs referred to General Chiang’s statement of June 25, and stated that the National Government is willing to discuss and compromise with the Southwest in matters of political administration and finance but insists that military insubordination as represented by the invasion of other provinces by Kwangtung and Kwangsi forces must be terminated first. He said that if the Southwestern provinces withdrew their forces and consented to discuss all contentious points at the meeting of the Central Executive Committee on July 10, this whole incident would probably be solved without long delay but he could not prophesy what course events would take if the Southwest leaders refused to recall their forces and he seemed despondent over the outlook.
3. By mail to Peking.