793.94/8065: Telegram

The Ambassador in China (Johnson) to the Secretary of State

372. Embassy’s telegrams 353, July 10, 4 p.m., and 356, July 13, 3 p.m.

1.
Developments for Sino-Japanese relations in North China seem still to await the outcome of the situation in the South and the return [Page 251] or non-return of Wang Keh Min to Peiping to take charge of civil affairs in Hopei Province, leaving military affairs to Sung Che Yuan.
2.
Chinese and Japanese observers express the opinion that Japanese efforts have failed for the time being to persuade Han Fu Chu to participate in the Hopei-Chahar Political Council. Han may be influenced by Chiang’s present success with Kwangtung or by dissatisfaction with possibility of new officials becoming important in Hopei, as mentioned below.
3.
It is understood that if Wang Keh Min returns to Peiping he will be assisted by certain men whom he regards as competent in finance and economics and who are acceptable to the Japanese. These men are reported to be Wang Yi Tang, old Anfu clique member, now a member of Hopei-Chahar Political Council; Tsao Ju Lin, who served in Anfu Ministry with Wang Keh Min and who does not hold office at present; Tang Erh Ho, who was not associated with the Anfu clique but who held Cabinet positions in 1922, ’23, and ’27 and who speaks Japanese and holds no office at present; and Liu Che, of the old Mukden party, at present a member of the Hopei-Chahar Political Council. According to report, these men, with Wang Keh Min as chairman, will form some sort of an economic committee and its formation may be accompanied by some change in the present form of Sung’s regime.
4.
The Council recently rescinded the order for the arrest of Shih Yu San for subversive activity favorable to Japanese intrigue in 1933 and he has now come to Peiping and become a member of that Council.
5.
Sung Che Yuan is allegedly apprehensive that if Wang Keh Min returns to Tientsin, Wang will reduce Sung’s revenues because Wang will need part of Hopei’s revenue for use in carrying out Sino-Japanese economic cooperation in this area.
6.
Wang Keh Min’s position will be difficult as he will have to attempt to please the Japanese military, Sung Che Yuan, and Chiang Kai Shek. By mail to Tokyo.
Johnson