793.94/7470: Telegram
The Counselor of Embassy in China (Peck) to the Secretary of State
[Received December 4—8:35 a.m.]
126. 1. According to the official quoted in my 94, November 29 [20], 6 p.m., Ho Ying-chin is under instructions to negotiate with the Japanese with a view, as a last resort, to establishing a special administration for Hopei with himself as head which will not interfere with the remittance to the National Government of customs and salt revenues and which may later be extended to include Chahar but not Shantung. The official states the Government expects that Ho will find it necessary to make this move and publicly announce the new administration within a few days. He states that Ho’s instructions are predicated upon the belief that it is more advisable for a [Page 469] high official acting for the Government to set up the new administration than for the change to be effected by local authorities acting contrary to the Government’s instructions under pressure from the Japanese.
Repeated to Department and Peiping.