Office of the Historian

793.94/12726: Telegram

The First Secretary of Embassy in China (Salisbury) to the Secretary of State

Peiping, March 28, 1938—4 p.m.
[Received March 28—7:30 a.m.]

191. Embassy’s 184, March 23, 4 p.m.7

1.
An agreement was signed March 26 inaugurating a “Sino-Japanese Economic Council” (paragraph 4 of Embassy’s 178, March 19, 11 a.m.7) with Wang Keh-Min as Chairman and Hachisaburo Hirao as Vice Chairman. According to the Japanese press, this organ will be the highest organ for directing economic activities in North China (including finance, commerce, industry, mining and agriculture) and a special “Ministry” will be established for the carrying out of its decisions. It is reported, however, that a similar organ is to be set up in the Japanese North China Army with Hirao as its head, and it seems probable that this organ will give instructions to the new organ of the Provisional Government.
2.
The local Japanese military spokesman outlined this morning alleged Japanese successes in southern Shantung, northern Honan, and Shansi. None of them appears to alter the military situation significantly. Chinese reports indicate some successes in counter attacks by Chinese forces. From the reports of both sides it would appear that Japanese advances in southern Shantung and Shansi have been checked, at least temporarily, and that severe engagements are in progress in which Japanese as well as Chinese forces are suffering heavy losses.
3.
A strike began March 24 among Chinese workers of the Kailan Mining Company in eastern Hopei and has affected several mines of [Page 132] the company. At one mine 15 strikers were reportedly killed March 25 and 40 wounded while 7 or 8 Chinese of a “self protection” corps were also killed. Strikers are understood to have occupied on March 27 the compound and offices of the company of Tangshan. The strikers have not yet damaged company property. The origin of the strike is obscure but there is evidence which indicated that, if Japanese interests did not instigate the trouble, they may now be making use of it in the hope of obtaining control of the company’s interests. The local British Embassy is understood to have requested the assistance of the Japanese authorities in settling the strike.8

Repeated to Hankow, by courier to Tokyo.

Salisbury
  1. Not printed.↩
  2. Not printed.↩
  3. The mines were again normal by April 29.↩