893.002/12–644
Memorandum by the Chief of the Division of Chinese Affairs (Vincent)
Significance of Recent Chinese Cabinet Changes
Chinese Cabinet changes are significant primarily as indicating that Chiang considers it necessary to make at least a gesture responsive to criticism of Government administration in the recent People’s Political Council and throughout the country. Only time will tell whether he really means to effect reforms. It is our belief that he will, but that the reforms will not be far-reaching.
Encouragement with regard to the appointment of General Chen Cheng as Minister of War is modified by the retention of General Ho Ying-Chin as Chief of Staff. If Chiang supports Chen there should be reform in military administration in spite of probable friction between Chen and Ho. He is very much persona non grata with the Russians.
O. K. Yui, succeeding H. H. Kung as Minister of Finance, has integrity but no great ability. He is close to Chiang, in a subordinate manner, having at one time been Chiang’s personal representative at Hong Kong.
The appointments of General Chen and O. K. Yui may have the effect of bringing military and financial administration more directly under Chiang, a development which in a way is not encouraging. Further concentration of control in Chiang’s hands would have obvious drawbacks.
Dr. Wang Shih-chieh as Minister of Information brings to that office a man of ability who, if he is given a free hand, should do something toward relaxing press censorship and whose general influence in the Government should be beneficial. Wang has conducted the negotiations with the Chinese Communists in recent months and, subject to the limitations placed upon him by Chiang, has worked sincerely for a settlement.
Other appointments have no great significance.
[Page 706]T. V. Soong’s appointment as State Councillor has no significance.
It is believed that Chiang, in making the changes, has been more responsive to internal than to external criticism (I am stressing this in press interviews). The changes are not simply a “reshuffle”. Good men have come into the Government who, if backed by Chiang, should be able to effect improvements in administration.