893.00/8–548: Telegram

The Consul General at Mukden (Ward) to the Secretary of State

380. Personal representative Generalissimo arrived Mukden 2nd August discuss July 5 Peiping shooting Northeast students with Northeastern leaders. Representative instructed by Generalissimo effect amicable settlement and given plenipotentiary cover [power?] that end. Friendly agreement reached here and representative departed Mukden 4 August for Peiping to inaugurate action agreed upon. Northeasterners satisfied and their leaders state will be neither demonstration on August 15 as planned nor further moves for present toward political emancipation. Representative asked Northeasterners whether other grievances entertained and when informed thereof promise discuss with Generalissimo personally.

Source, who desires identity remain unknown, has been summoned Peiping by Fu Tso-yi to draw up economic plan for unifying economies [Page 401] North China and Northeast. Because source not member local govt here, his meeting with Fu enhances belief existing many circles here, including Consulate General, independent group China centering around Li Tsung-jen now laying basic plans step in and assume control present Chinese Govt should Nanking falter or collapse.

Source need [did?] not indicate time schedule such move but information given by him indicates plans now in advanced stage. Plan for military and political control will center around Li Tsung-jen with regional control in Central China given to Pai Chung-hsi, in North China to Fu Tso-yi and in the Northeast, his first step will be to release the young Marshal28a and return him northeast. When such action taken, Wei Li-huang expected resign his position as Commander of the Northeast Bandit Suppression Headquarters, retire from active duty and leave Northeast.

When queried as to whether or not such move would open Northeast to Communists, source stated Northeastern Communists generally divided into three groups. One group, with Li Li-san as political leader and one Tsao as military leader, takes directives from and works in close cooperation with Moscow. This is small group and for most part situated in areas adjacent Soviet Union. Second and large group is considered the true Chinese Communist group, and, while in sympathy with Communism as exemplified and led by Moscow, maintains an independent attitude in taking directives from Moscow. Political leader of this group Mao Tze-tung and the military leader in Northeast Lin Piao. Third group comprising approximately 80% of entire Communist military power in Northeast, composed of local Northeasterners, former staunch followers of young Marshal, of dubious loyalty to Communism and who are fighting in cooperation with Communists because of hatred for Generalissimo, Central Govt in its political debauchery of Northeast, and Kuomintang. Organization this last group is not close and no recognized leader thereof has emerged. His [Its] strength lies in military leaders of its component groups being long time personal friends and source categorically states he is positive should Generalissimo be replaced by Li Tsung-jen this last mentioned group would immediately rally around young Marshal and, in coordination with present Govt sources now in Northeast, rapidly succeed in defeating other two groups Northeastern Communists, thus bringing peace to area and opening way for economic recovery.

Sent Embassy 414; repeated Dept 330. Dept pass Nanking.

Ward
  1. Chang Hsueh-liang.