893.105/95
The Chargé in China (Atcheson) to the Secretary of State
[Received June 25.]
Sir: I have the honor to refer to despatches nos. 1184 of May 14, 1943,78 and 1194 of May 18, 1943, transmitting reports79 from Second Secretary Drumright at Chengtu concerning friction between the Central Government and Szechwanese provincial interests, and to transmit copy of a memorandum78 by Second Secretary John S. Service relative to the same general subject.
Summary: Recent difficulties between the Central Government and Szechwanese vested interests, a continuation of the friction which has existed since the Government moved to Szechwan, have been so serious as to necessitate the visit of Dr. H. H. Kung, Vice President of the Executive Yuan and Minister of Finance, to Chengtu to consult Szechwan leaders. The Szechwanese have four demands: a Governor suitable to them; equal treatment for provincial troops; local control of capital development; and reduction of land tax in kind and compulsory purchase of grain. Faced with the importance of Szechwan as the chief base of the government, the possibility of unrest, and the power for obstruction of the powerful local interests, the Central Government will probably make some concessions on at least the second and fourth points.
Respectfully yours,