893.00/3–147: Telegram
The Minister-Counselor of Embassy in China ( Butterworth ) to the Secretary of State
[Received March 1—12:50 p.m.]
415. I paid a courtesy call on Dr. Soong this afternoon. He was in good spirits and received me most cordially. He said that he felt that his position had been growing untenable as his unpopularity increased in the face of mounting inflation and his attempts to hold it back through budgetary control,87 and that he had determined last night to submit again his resignation and get out. He gave me the impression that his meeting with the Generalissimo was not unamicable. He went on to say that whereas he did not feel he could usefully serve as President of the Ex[ecutive] Yuan or Chairman of the Supreme Ec[onomic] Council, which office in the present situation is concurrent with the Presidency of the Ex-Yuan, “I am Chinese and a patriot”, and in the crisis facing China his services were available to the Generalissimo whenever he called. He vouchsafed the fact that the Generalissimo would temporarily take over the presidency of the Ex-Yuan, and he indicated that he would stay on for awhile to assist him in the change-over.
Although Soong has no doubt found it desirable to suggest resigning from time to time during past months and has been concerned by the growing open hostility toward him during the past critical month, it seems clear that T. V. Soong decided to force the issue last evening. In this connection reference is made to the Generalissimo’s statements contained in Embtel 390 Feb. 28, 8 [2] p.m., that Ex-Yuan would be reorganized “not before 2 weeks and not later than 4 weeks.”
The reason why Soong decided to force his resignation was the growing intensity of the attacks on him at the PPC,88 Legislative Yuan and in the press which were gathering momentum and which he must have known meant that the Generalissimo sooner or later would have to let him go.
The Supreme National Defense Council met late this afternoon and appointed the Generalissimo as temporary President of the Ex-Yuan with T. V. Soong acting largely for him, pending the organization of the State Council that will appoint the new Ex-Yuan of which Chang Chun89 will probably be the president. Chang Kia-ngau, Carson Chang’s90 brother and at present Chairman of the Ec Commission [Page 49] for the northeast, was appointed Governor of Central Bank, but his appointment should not be evaluated in terms of his relationship with Carson Chang but in the light of his banking background and of his affiliation with Political Science [faction].