Office of the Historian

893.00/13964: Telegram

The Ambassador in China (Johnson) to the Secretary of State

Nanking, February 4, 1937—2 p.m.
[Received February 5—8:18 p.m.]

59. My 46, January 27, 11 a.m.

1.
There are no indications of early success in the Government’s attempt to reestablish authority over Sian. Semiofficial Central News reports that fighting has occurred in Sian between a faction of the northeastern army wishing to accept the Government’s terms of submission and a “radical” faction meaning presumably a faction [Page 19] which insists upon adhering to the policy of accepting the Communist forces as allies in open armed resistance to Japanese encroachments. Reuter publishes report that Yang Hu Cheng refuses to carry out agreement reached for withdrawal of his troops until after the Central Executive [Committee] meeting on February 15 and that he has seized funds in Sian belonging to the National Government. (See end of my 44, January 26, 3 p.m.)
2.
Chiang Kai-shek is reported to have obtained extension of leave of absence until February 15. The following reports current in Nanking portending possibility of grave developments seem to me not inherently improbable: Chiang Kai-shek, ever since his release December 25, has been struggling to find solution of the problem created by promises given to the Sian leaders by himself and by his wife and T. V. Soong29 on his behalf to induce the leaders to release him and the international complications which would follow execution of these pledges. This report states that he definitely promised to announce and commence armed resistance to Japanese encroachments, to cease attacks on Chinese Communist forces and accept their aid, and to remove alleged pro-Japanese officials from the National Government. The report adds that Chiang at one time almost decided to continue immediately suppression of the Communists and other rebels at Sian by force and to execute Chang Hsueh-liang as the rebel leader when he was visited at Fenghua by Soong who bitterly criticised him for violating the pledges already mentioned and threatened to leave China and publicly announce Chiang’s perfidy. Madame Chiang is credited with persuading Chiang to resist Soong’s advice. It seems probable that Chiang’s release was granted as the result of some undertaking and that this undertaking and the seizure by Yang Hu Cheng of large money and munitions supplies are serious factors in the problem.
3.
An official of the Italian Embassy professes to believe a report received by him that Chiang has finally decided to accept Chinese Communist forces as allies in resistance to Japan which decision informant believes will inevitably result in an alliance with Russia against Japan and the dismissal of many prominent officials now in the capital. Informant believes that the Sian problem imposes on China the necessity of choice between alliance with Russia or with Japan. Informant’s source said that the British and American Governments had secretly indicated to China no objection to China’s siding with Russia.
4.
Although the views set forth in the preceding paragraph are probably colored by the Italian conception of a world divided into Communist and Fascist blocs, it is hard to believe that the Chinese Communist forces which have successfully resisted the Government’s attempt at suppression for 10 years will abandon either their strategic position in the Northwest or their course of action to force an issue with the Government. With Russia and Japan closely watching the solution of this problem there seems to be no way for Chiang to escape deciding whether to accept the aid of Chinese Communist forces against Japan or to [adopt?] military measures against them. Either course will support the Japanese contention that the Communist forces in the Northwest are a threat to peace. Negotiations with the rebels at Sian might be expected to proceed to peace by the Chinese compromise if they were not obstructed by this factor.
5.
Some decision must be ratified by the Central Executive Committee on February 15 and the nature of the decision should indicate the amount of truth there is in the reforms discussed in paragraphs 2 and 3 above.
6.
Sent to the Department; by courier to Peiping.
Johnson
  1. Chairman of Board of Directors, Bank of China, and brother of Madame Chiang Kai-shek.↩