893.00/10–1044

The Consul at Tihwa (Smith) to the Secretary of State 77

No. 23

Sir: I have the honor to refer to my despatch No. 7 of June 27, 1944,78 entitled “Further Mass Arrests of Alleged Communist Plotters for the Overthrow of Sheng Tupan; Possible Change in Chungking Policy Here Mooted”, in which it was suggested that the eventual inevitable replacement of Sheng Shih-tsai as Chairman of Sinkiang was likely to happen much sooner than had previously seemed possible, and to report that Wu Chung-hsin was today inaugurated into the office of Chairman of the Sinkiang Provincial Government. While shrouded in Chinese official secrecy the story behind the sequence of events leading up to this shift is believed to be known in its general outlines.

Summary: The political situation in Sinkiang has been obscure for the past eight months. At the beginning of that time it became obvious [Page 816] that there was serious friction going on between the Provincial Forces and Kazak-Mongol-Russian forces in the Altai region. This trouble quieted down temporarily after the partial withdrawal of Provincial forces from the disputed area but flared up again in the Tacheng area in July and August and has since spread to points nearer Tihwa and Ining.

Sheng tendered his resignation as Chairman of the Sinkiang Provincial Government shortly after the height of the Soviet bombing of Sinkiang troops late in March. He claimed to have unearthed a communist plot for his overthrow in mid-April and initiated a series of arrests which by June 26 totalled over 2000 in number and included several fourteen year old school children.

The Generalissimo decided in May to transfer Sheng to the Chairmanship of Kansu Province. There were several reasons for this decision. Sheng was particularly disliked by the Soviet Russian authorities and his regime tended to inciease the tension between Soviet Russia and China by constant petty persecution of Soviet residents. The atmosphere would have to be cleared before vitally necessary discussions of boundary problems could be instituted with any hope of success. There was danger of an open break with Soviet Russia if Sheng stayed on in Sinkiang. Furthermore Sheng was & potential danger to the unity of China and his regime was an anomaly in present day centralized China.

Sheng did not wish to accept the Chairmanship of Kansu but wanted a higher and safer post before relinquishing his strong position in Sinkiang and he also wanted suitable posts for his leading henchmen. By arresting several leading Chungking appointees on the charge of Communist conspiracy he served notice that he was ready to resist removal unless a more satisfactory appointment was offered. He was thereupon offered the post of Minister of Forestry and Agriculture and accepted it, leaving September 11. End of Summary.

[Here follows detailed report.]

Respectfully yours,

Horace H. Smith
  1. Approved by the Counselor of Embassy in China (Atcheson) for transmission to the Department.
  2. Not printed.