793.94/7523: Telegram
The Second Secretary of Embassy in China (Atcheson) to the Secretary of State
140. 1. Reference my 137, December 12, 1 p.m.; and 138, December 12, 2 p.m. I am informed by Kung’s confidential assistant that the solution of the North China crisis was attained not only by negotiation with Japanese military officers but also by conversations with Tokyo which resulted in the exercise by the Japanese Government of sufficient restraint over the Japanese military that Chinese were able to arrange for a special administration more or less along their own lines for two instead of a larger number of provinces.
2. He states that the disagreement over finances which delayed the announcement of the new Commission’s formation was settled by allocating to the Commission control over consolidated wine and tobacco, and various local taxes, the Central Government to retain salt, customs and railway revenues. He said that all National Government functions in Hopei and Chahar would continue to be in actual control of the National Government with the exception of Foreign Affairs which, while nominally under Nanking’s direction, would probably be conducted by the commissioner [Commission?] at its discretion with confirmation of its acts by Nanking.
3. To Department and Peiping.
4. The new Commission includes several members of former Anfu Party, but these are considered not antagonistic to the National Government: [Page 487] Wang I-tang who has been considered for Government office; Chia Teh-yao, Vice Minister of War in Tuan Chi-jui’s Government; and Wang Keh-Min. Kao Ling-wei is of the former Chihli Party and was Prime Minister in 1923. Men Chih-chung is an adherent of Yen Hsi-shan and Sung Che-yuan. Shih Chih-ting is a former Kuominchun commander. Hu Yu-kun is a former northeastern army leader. Liu Cheh was a member of the Peiping Political Affairs Readjustment Commission. Leng Chia-chi is Chairman of the Peiping Chamber of Commerce.
- Telegram in three sections.↩