893.00/13670: Telegram
The Counselor of Embassy in China (Peck) to the Secretary of State
[Received 9:20 a.m.]
244. (1) Semiofficial Central News Agency reports that Chiang Kai Shek flew yesterday from Kuling to Canton. An officer of the [Page 268] Embassy was not informed last evening by the Minister of War that Chiang would proceed to Canton this week and the agency’s report is believed to be true since Chiang’s movements are rarely announced until made.
(2) Chen Li Fu, party leader and member of the standing committee of the Central Executive Committee, together with Chu Cheng, President of the Judicial Yuan, flew yesterday to Canton from Shanghai to reorganize party affairs in Kwangtung. The Minister of the Navy is now at Amoy or near by ostensibly for routine inspection purposes but reportedly to prepare for naval action on the West River, particularly at Wuchow, Kwangsi, if necessary.
(3) Japanese news agency Domei reports that five additional Central Government divisions (the 11th, 14th, 18th, 50th and 67th) yesterday embarked from Canton for duty along the West and North Rivers and 12 planes of the Central Air Force proceeded to Yunnanfu August 9th in preparation for an attack upon Kwangsi.
(4) Unconfirmed reports are circulating here that negotiations with Li Tsung Jen and Pai Chung Hsi have broken down and that their continued refusal to conform to the Government’s wishes is based on a belief that Chiang Kai Shek wants at all costs to avoid civil war and will ultimately agree to an arrangement whereby they will render lip service to the National Government but will remain in actual control in Kwangsi.
(5) To the Department and Peiping. Repeated to Canton. By mail to Hankow, Shanghai.