893.00/13626: Telegram
The Consul General at Canton (Spiker) to the Secretary of State
[Received 6:45 p.m.]
Referring to my telegram of July 18, 11 p.m. Marshal Chen secretly left for Hong Kong on H. M. S. Moth. There were heavy movements of Kwangtung troops westward across city last night which are continuing this afternoon although smaller bodies are moving east. Destination of such forces not yet ascertained; some of them probably occupying points to west as discouragement to possible Kwangsi advance while others are replacements in areas occupied by Yu Han Mou. Gunboat at Wuchow today reports that large number of launches and junks gathered at that city have departed with troops returning up West River, this indicating that Pai and other Kwangsi commanders have agreed to Li’s undertakings to Kwangtung leaders as reported in my telegram of July 18, 11 p.m.
2. Aside from marked troop movements, Canton remains outwardly quiet, heavy rains contributing to such situation. Finance Commissioner has made popular concession to public by announcing suspension for 1 month of usual tax on imported rice.
3. There is a general feeling of relief and confidence that removal from Kwangtung of the two marshals marks good stride forward in national political adjustment but responsible Chinese invariably qualify their optimistic beliefs with the words “unless the Japanese now do something.”
4. In strictest confidence I am reliably informed that Provincial Chairman and the Mayor who fled to Hong Kong are returning to Canton tomorrow morning but will remain in seclusion until Nanking indicates its desires. Their return interpreted as indicating there is little danger of any disturbance in the city. This information supplied to me on condition that it be held in strict confidence until press reports are published.
5. Sent to the Department, Peiping, Nanking, Shanghai and Hankow.