893.002/129: Telegram
The Minister in China ( Schurman ) to the Secretary of State
[Received 3:45 p.m.]
203. My 201, June 7, 10 a.m. Lunched today with Koo who, along with Yen and two speakers of Parliament, spent forenoon in conference with President. It is present intention to accept Cabinet resignation. Still uncertain who will head new Cabinet as no one wants to take financial responsibility of passing dragon boat festival for which at least $4,000,000 is needed and nothing in sight. Conference is to be resumed this evening.
Recalling points in long talk Yen had with me here June 3rd and remarks of Koo today, I surmise following is program of Chihli Party: First, installing new Cabinet with Yen as Prime Minister and Koo, Minister of Foreign Affairs; secondly, forcing Li Yuan-hung out of the Presidency; thirdly, temporary assumption of Presidential functions by Yen Cabinet; and fourthly, election of Tsao Kun to the Presidency. The execution of this program may be frustrated by strategy of President, or by governmental bankruptcy, or by withdrawal from Peking of Kuomintang members leaving Parliament without quorum for electing a President, or by other circumstances.