893.002/5–3149: Telegram
The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received June 1—10:09 a. m.]
Cantel 509. Chu Chang-wei, political adviser to Li Tsung-jen, tells me Chu Cheng selection Premier was approved by Legislative Yuan today by vote 151 to 143. Opposition came from C–C clique who thought him too old (he is past 70), from Whampoa clique who resented removal Ho Ying-chin, and from some supporters Yen Hsi-shan who were against anyone other than Yen. Chu Cheng is now free form Cabinet which need not be submitted Legislative Yuan for approval. Latter adjourns today until September when it will meet, in theory at least, wherever government is located.
Chu thinks Ho Ying-chin will refuse accept any post new Cabinet and says S. Y. Liu will be replaced as Finance Minister by Hsu Kan. Selection Hsu Kan as Finance Minister was dictated by need have Szechuanese that position with likelihood government will move Szechuan. Monetary measures framed under Liu will be delayed in implementation few days yet; Liu will remain on standing committee Central Bank to assist.
Chu says Generalissimo will not come Canton nor will Li visit Generalissimo. Generalissimo, he says, is now at sea again, having visited Taiwan to receive delegation “old men”. He thinks Generalissimo may be en route Amoy.
Neither treasure accumulated Amoy or Taiwan has yet been made available, according to Chu, although its availability has been promised. He confirms that in view transportation difficulty only minimum personnel will accompany government Chungking and that many will proceed elsewhere. It is those who will not go Chungking who are being permitted depart Canton this state [date?] for Taiwan. Chu would not suggest timetable but seemed convinced inevitability eventual removal capital to Chungking.
Sent Department 509, repeated Nanking 346, Shanghai 298.