893.00/13584: Telegram
The Consul General at Canton (Spiker) to the Secretary of State
[Received June 30—3:45 p.m.]
Referring to my telegram of June 29, 4 p.m., Marshal Li Tsung Jen yesterday took oath as Commander-in-Chief of the Fourth Group Army of the Anti-Japanese National Salvation Forces (see paragraph 2 of my telegram June 6, noon; and one paragraph of my telegram June 24, 9 p.m.,50 concerning Chen’s similar assumption of new title June 23rd). Following extracts from Li’s speech of acceptance as published by local government news agency are in marked contrast with Chen’s conciliatory advices that Nanking’s leadership be accepted:
“My armed colleagues and I, having been intrusted with this important mission will make every endeavor to bring the Southwest’s policy of resistance and salvation to fruition. At the same time we nope that the revolutionary masses of the country will come into line with us”. “While we must do our utmost to resist Japanese, we must at the same time keep diligent vigil over Chinese traitors who are to be ruthlessly crushed. As with fighting the bandits, we must first list the internal traitors in order to strengthen both fronts”. “I not only pay my very best regards to all revolutionary people and the soldiers of the whole country but also hereby declare that I am resolved to lead the entire Fourth Group Army to the front in our national and revolutionary campaign”.
- 2.
- Local authorities continue to endeavor to suppress all discussion of local political situation, most casual remarks apparently being [Page 230] sufficient cause for numerous arrests by plain-clothesmen who swarm in the city. Anti-Japanese propagandists are addressing street crowds but little interest shown, partly because of fear that plain clothes men using this device to trap listeners into making political comments. Unusually large number of Japanese alleged business men and sightseers have been arriving in Canton during the past week. Canton remains quiet.
- 3.
- Financial situation in Kwangsi reported serious, Kwangsi Provincial Bank, which has been designated sole medium for exchange transactions having closed its doors several days ago (see paragraph 3 of my telegram June 11, 1 p.m.51). Canton currency has remained fairly steady for past 5 days averaging 180 to the Hong Kong dollar. At least 2 million silver dollars of deposits, referred to in first sentence paragraph 3 of my telegram June 6, 4 p.m.,52 have been withdrawn believedly for deposit with Government reserve of silver in Canton.
- 4.
- Sent to the Department, Peiping, Nanking, Hankow and Shanghai.