893.00/8–2548: Telegram

The Consul at Peiping (Touchette) to the Secretary of State

472. Remytels 460 and 461, August 17 to Nanking, repeated Washington as 307 and 308 and Shanghai as 327 and 328. North China [Page 438] military-political conference concluded August 22 after 7 days secret meetings. Approximately 110 persons participated comprising governors, garrison CO’s, peace preservation CO’s, and mayors large cities of Hopei, Chahar, Jehol, Suiyuan. Conference given little publicity in press.

Fu Tso-yi’s unpublished opening address stressed necessity military reform and administration reorganization. Main argument that must take offensive and abandon defensive psychology. On administrative side he emphasized civil officials and militia responsible maintenance order in rear areas freeing troops for offensive. North press indicated implementation these two concepts would form two main tasks of conference.

Believed possible Shanhaikuan area jurisdiction problem discussed. Also rumored possible discussion political secession North China unless adequate aid given. Another partial explanation that Fu may have called conference as check to Chen Chi-cheng who convened group non-Fu generals in July.

Sent Nanking 318, repeated Dept 472.