893.00/8–449: Telegram
The Vice Consul at Chungking (McGeary) to the Secretary of State
137. From Strong. Nationalist military forces now beginning same measures here which alienated population Tsingtao (as example known to me).
Ministry National Defense has ordered SWMPA58 raise one million silver dollars for construction defense works vicinity Chungking. Garrison headquarters to collect funds in cooperation with city government and will carry out work. City Council opposes measure on valid grounds defense should take place at border and defense works around city useless if Communists penetrate so far. Garrison making outright levies on banks, commercial houses, industries and landowners but all have so far avoided actual payment. Aside from futility of project, people have legitimate fear that, as at Tsingtao, it will turn into another boondoggle for private gain. Recent serious food price rises attributed in large [part?] to illegal conscription activities by various military units which are under declared strength; view fear Defense Commander that strength may be examined by Central Government before committed to combat near future, they obliged round up defenceless civilians to fill in ranks since cannot obtain men from legal conscription center. Effect has been to make farmers afraid enter city, thus creating scarcities. Garrison now using military police patrol city prevent such illegal activities. This measure plus fact silver and gold reserves exceed amount paper notes issued hoped bring price decline.
Repeated Nanking 141; OffEmb Canton 91. [Strong.]
- Southwest Military and Political Administration.↩