893.00/6–1444

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

No. 2683

Sir: I have the honor to enclose a copy of a memorandum of June 7, 1944,79 written by Second Secretary John S. Service, on detail to General Stilwell’s staff, in regard to the National Administrative Conference, the first of its kind, which was held at Chungking from May 29 to June 1.

Summary of Enclosure: According to a Chinese present at most of the meetings of the Conference, little was accomplished and the acrimony displayed at the 12th Plenary Session of the Kuomintang Central Executive Committee continued. There was apparently outspoken criticism of the Central Government by some of the Provincial Chairmen and while the CEC Session gave some indication of changes in the relationship between the Central Government and the provincial governments no significant changes were said to have been made as a result of the Conference. Politically, the Political Science Group dominated the meeting with the four Provincial Chairmen belonging to that group reportedly having been joined by General Liu Wen-hui, Chairman of the Sikang Provincial Government and one of the Szechuan warlords. End of Summary.

One hundred and twenty-six high ranking Government officials were reported to have attended the National Administrative Conference, including Generalissimo Chiang Kai-shek, presidents of some of the Yuan, government ministers and chairmen of the provincial governments of six provinces (Szechuan, Sikang, Kweichow, Kansu, Chekiang and Fukien). Provincial governments headed by army commanders who were unable to attend the Conference because of the military situation were represented by secretaries-general and commissioners of the provincial governments. Problems said to have been discussed by the Conference were as follows: (1) the relationship between the Central Government and local governments; (2) local self-government; (3) price control and stabilization of the economic system; (4) reconstruction of occupied areas and post-war demobilization; and (5) other problems concerning public administration.

[Page 455]

In accordance with a resolution adopted by the CEC at its meeting in May (Embassy’s despatch No. 2660 of June 8) regarding the relationship between the Central Government and local governments with respect to administration, the Conference is said to have decided that the provincial governments will in the future be subject to the control of the Executive Yuan in matters of national character or about changes in personnel, budget and administrative plans. It was also decided that the provincial governments will have the right to change their budgets and administrative plans upon their own initiative and to report such changes afterwards to the National Government for approval. A decision of the 8th Plenary Session of the CEC in 1941 had put provincial budgets under the direct control of the National Government and the foregoing measure relating to the budget would give increased power to the provincial governments if put into effect. Another measure said to have been the subject of much discussion was the question of the collection of tax in kind. The provincial governments apparently succeeded in avoiding the responsibility of collecting this tax, which is an unpopular task, and it is reported that the collection will be carried out by the Central Government and local government organs.

While there are apparent concessions to the provincial governments in the proceedings of the Conference, it is generally believed that there are no more than outward concessions and that the power of the Central Government remains relatively unchanged in as much as the chairmen and commissioners of the provincial governments will continue to be appointed by the Central Government, almost without reference to local wishes except in the case of provinces such as Yunnan and Szechuan where provincial interests and opposition to the Central Government are strongest.

Respectfully yours,

C. E. Gauss
  1. Not printed.