893.00/2–847: Telegram
The Ambassador in China ( Stuart ) to the Secretary of State
[Received February 9—5:10 a.m.]
229. Conference with President Chiang Kai-shek on February 7. President Chiang described himself as actively exploring details of government reorganization. He explained at some length the problem of including minority parties as arising partly from their lack of really competent personnel, partly from their hesitation to join Government because they object to merely minor participation as leaving Kmt still dominant or because of fear that economic situation may lead to Government collapse. Three possible procedures are being considered:
- 1.
- General addition of non-Kmt people in existing structure not including Executive Yuan;
- 2.
- Emphasis on changes in Executive Yuan;
- 3.
- Concentration on State Council with real authority for interim period. Gimo57 tended to favor last with changes elsewhere except Executive Yuan where considerations of practical administration are more acute. Carson Chang for head of Judicial Yuan favorably considered.
Gimo thought military situation in removing threat from south Shantung well in hand. Other danger point Taiyuan also probably safe by cooperation of Yen Hsi-shan who could be relied on to protect his capital. North Kiangsu now entirely recovered. Gimo indicated that the plans for improving local administration north Kiangsu were in process with active assistance James Yen.58 Similar plans for Hopei with special reference coastal stretch were being made.
Previously Gimo had shown no concern over economic or financial situation while T. V. Soong has been so exigent as to telephone me [Page 35] three times during previous day. Following discussion between Butterworth, Blandford,59 Adler60 and myself during which the first named indicated the inappropriateness of such pressure while the head of the state remained unconcerned and apparently unaffected by the situation, Gimo brought up financial position and described it as acute and expressed strongly the hope that a loan could be promptly approved.