893.00P.R./19

The Minister in China (MacMurray) to the Secretary of State

[Extracts]
No. 2108

Sir: In accordance with the Department’s instruction No. 78, of October 9, 1925,39 I have the honor to submit the following summary, with index, of events and conditions in China during April, 1929.

Hostilities between Nanking and the Kwangsi faction came to an abrupt end with the withdrawal of the Wuhan forces from the front on April 4th and the entry of General Chiang Kai-shek into Hankow on the following day. The hold on Eastern Shantung, of the insurgents [Page 154] under General Chang Tsung-ch’ang, was also broken during the period under review, so that the month ended more brightly for the Central Government than had March. Fundamentally, however, the situation continued unchanged, the ostensible unity of the country remaining a temporary balance of forces as among various military groups whose interests were still unreconciled if not irreconcilable. The Kwangsi faction, defeated at Hankow but not eliminated, apparently was on the verge of hostilities against Canton at the end of April. Furthermore, there appeared to be little hope of harmonious cooperation between the Nanking Government and Marshal Feng Yu-hsiang, whose desire to control an area capable of supporting his large armies, preferably with an outlet to the sea, was incompatible with General Chiang Kai-shek’s ambition to govern a united country.

. . . . . . . . . . . . . .

As reported by the Consul General at Shanghai, the China National Aviation Corporation, with an authorized capital of ten million dollars, Chinese currency, entirely owned by the National Government, was organized on April 5th by the State Council at the suggestion of and under the presidency of Mr. Sun Fo, Minister of Railways. It was brought into being for the purpose of entering into contracts with the Aviation Exploration Incorporated. The latter, headed by Mr. C. M. Keys, of New York, is a subsidiary of the Curtiss group of companies. Two contracts, of April 17th, were entered into, the first being for the carrying of air mail by the American company for the Chinese Government, on three important lines, and the second providing for the establishment and operation of flying schools, factories, and aerial transportation. Many persons long resident in China are of the opinion that the scheme is in advance of present conditions in this country.

Mr. Cunningham reported further that on April 17th the ratepayers ratified the sale for Taels 81,000,000 to the American and Foreign Power Company, Incorporated, of the Shanghai Municipal Electricity Department, the most important municipal undertaking of the Shanghai International Settlement. The company which made the purchase is predominately American. The property had cost the Shanghai Municipal Council but Taels 40,000,000, which would indicate that the sale was purely a business matter to the municipality and that it was a demonstration of confidence in the National Government on the part of the investors.

The Chung Shan Highway, at Nanking, which forms a seven and one-half mile approach, from the waterfront on the Yangtze River, to the Sun Yat-sen Mausoleum on the lower slope of Purple Moun tain, was opened on April 1st. As indicated in a report from the [Page 155] Consulate at Nanking, the highway will serve the double purpose of making accessible to anticipated throngs of tourists the tomb of Dr. Sun, as well as of relieving the traffic congestion in the walled city, which has become a serious problem following the establishment of the government in Nanking.

. . . . . . . . . . . . . .

Relations Between Nanking and Hankow

As indicated by the Consul at Nanking, the most significant phase of the general situation during April was the short-lived military campaign against Hankow. The National Government’s order for a general offensive against the disaffected Hankow units was issued on March 30th, and the Wuhan area was captured on April 5th. The shattered Hankow contingents retreated thereafter to the western section of Hupeh but numbers of them declared their loyalty to the Central Government and were reorganized by the military leaders of the governmental forces. Following the capture of Hankow it was thought that the Honan troops under Marshal Feng Yu-hsiang might take advantage of the situation to seize Hupeh but no significant military movements with that end in view occurred during the period under review. General Chiang Kai-shek, who proceeded to Hankow early in April to confer on rehabilitation measures in Hupeh and Hunan, did not find it advisable, apparently as a result of the uncertain attitude of the Honan generals, to pursue the defeated Hankow units far into western Hupeh.

After the Wuhan area was captured, the central authorities considered the possibility of an anti-Kwangsi campaign from Hunan and Kiangsi. No important action in the matter was taken during the month, however.

It will be recalled that General Lu Ti-ping was removed from the Chairmanship of the Hunan Provincial Government in February by Wuhan Branch Political Council, an act which precipitated the conflict between Nanking and Hankow. He was restored to a position of authority, in gratifying fashion, during April by being made the Wuhan Garrison Commander.

. . . . . . . . . . . . . .

Developments in Shantung Following the Tsinan Incident Settlement

Reference was made in the March despatch to the settlement of the Tsinan incident on the 28th of that month, Japan undertaking thereby to withdraw her troops from Shantung within two months from the date of the signature of the agreement on the understanding that Japanese lives and property in the province would be protected in accordance with the accepted principles of international law. [Page 156] With the expectation that the Shantung provincial government would despatch troops to garrison Tsinan and the Railway Zone without delay, Japan proceeded to carry out the terms of the agreement, and, although May 27th was the date set for the completion of the evacuation, the Japanese authorities had planned to have their troops leave Tsinan on April 17th and the province itself by May 4th. It would seem as though such prompt action should have had the support of the Chinese authorities. On the contrary, a political complication, resulting apparently from the desire of General Chiang Kai-shek to prevent Marshal Feng Yu-hsiang from controlling Shantung, caused the Nanking authorities to request that the evacuation not proceed so rapidly. It had been arranged that the troops of General Sun Liang-ch’eng, the Chairman of the Provincial Government, a Feng Yu-hsiang adherent, were to take over on April 16th. An embarrassing delay ensued, however, from which it appeared that it was the intention of General Chiang Kai-shek to divide with Marshal Feng Yu-hsiang the responsibility for the protection of the province and limit his authority. Marshal Feng seems to have felt that it would be wise to withdraw altogether and on April 27th General Sun Liangch’eng removed his troops to Honan. It was not definitely known at the end of the month what forces the National Government would send to take over the province and who would be appointed to the Chairmanship of the Provincial Government, but nevertheless there was reason to believe that the evacuation of the Japanese troops would have been completed before the expiration of the two months fixed by the agreement of March 28th.

The following comment on the situation is taken from a despatch of May 6th from the Consul at Tsinan:

“The withdrawal of the Japanese expeditionary force was utilized for a silent but none the less serious trial of political strength between General Chiang Kai-shek and Marshal Feng Yu-hsiang, in which the former appears to have gained the upper hand, at least for the present…40

“Ever since the spring of last year when the northern march of the Nationalist forces was assured, thanks to the crushing defeat inflicted on General Sun Ch’uan-fang, the only northern general prepared vigorously to contend the Nationalist advance, by the armies of Marshal Feng, it has been recognized that Marshal Feng’s adherents were to control the Province of Shantung and they have been doing so for the past nine months with the sanction of the National Government and its President, General Chiang Kai-shek. Furthermore, upon the conclusion of a settlement of the Tsinan ‘incident’ it was generally understood that General Sun Liang-ch’eng, Chairman of the Shantung Provincial Government and a subordinate of Marshal Feng, would take over Tsinan, Tsingtao, and the Railway Zone, [Page 157] when evacuated by the Japanese. It was not until General Chiang Kai-shek had successfully defeated the Kwangsi insurgents … that he felt strong enough to snatch Shantung from the very grasp of Marshal Feng.

“The whole thing was done with consummate skill. Instructions were issued, through the medium of the National Government, ordering Marshal Feng’s subordinate to stop despatch of troops to Tsinan and taking all arrangements out of his hands. After some delay, further instructions were issued establishing dual control of the Kiaochow-Tsinan Railway and the most important section of the province. In the meantime, one of General Sun’s divisional commanders had been bought out and a formidable force of anti-Feng troops massed in the province. Marshal Feng, realizing that a determined effort was being made to prevent his gaining full control of the province and even to ‘squeeze’ him out of it altogether, apparently decided that it was wiser to withdraw his forces intact than to risk a trial of strength with General Chiang Kai-shek who would probably be supported by General Yen Hsi-shan. That a serious conflict may ensue as the result of developments in Shantung is entirely possible. There certainly appears to be little doubt that a more or less definite split has occurred between General Chiang Kai-shek and Marshal Feng Yu-hsiang, as evidenced by the withdrawal of all the latter’s adherents occupying official posts in the National Government at Nanking.”

Conditions in Eastern Shantung

The following summary of the situation in Eastern Shantung during April is based on a despatch, of May 1st, from the Consul at Chefoo:

The outstanding event of the month was the alleged capture, on April 22nd, of Muping (Ninghai) by General Chang Tsung-ch’ang’s forces, which later turned out to be a rout for the latter and an overwhelming victory for those under General Liu Chen-nien. This marked the end of the Chang Tsung-ch’ang attempt to gain control of Shantung. Only General Chu Yu-pu, in command of about 1,000 men, still held out at Fushan at the end of April.

During the past twelve months there have been, at various intervals, six changes of flag and nine different factions in power at Chefoo. On the morning of April 23rd, the Nationalist flag was hoisted for the third time. The month ended with General Liu Chen-nien, who claims allegiance to the Central Government, again in control of Chefoo and sharing nominal control of Eastern Shantung with other allegedly Nationalist military leaders.

It is noteworthy that these so-called Nationalist forces, other than those of Marshal Feng Yu-hsiang, are all composed of ex-Chang Tsung-ch’ang (Shantung) or Chu Yu-pu (Chihli) men, whose allegiance and flag has changed with the fortunes and inclinations of their leaders. It should also be noted that Liu Chen-nien formerly commanded Chang Tsung-ch’ang’s bodyguard. No bona fide Nationalist [Page 158] troops have yet made their appearance in Chefoo, nor has the Central Government made any attempt to appoint its own officials to the civil or military posts.

Tsingtao, a Special Municipal Area

The Consul at Tsingtao reported that the passing of the city to Nationalist authority was the outstanding political event in his district during April. The termination of the old “five barred” regime and the incident transfer of authority, long anticipated but delayed ostensibly by an insufficiency in the credentials with which the Nanking appointee was supplied, was effected without notice in any quarter except the Japanese. It was decided that the port should be given the status of a special municipal area, detached from provincial authority and depending directly from the Central Government. The regulations involved were still in the process of formulation in Nanking during the period under review.

. . . . . . . . . . . . . .

I have [etc.]

J. V. A. MacMurray
  1. Not printed.
  2. Omission indicated in Minister’s despatch.