793.94/7344: Telegram

The Counselor of Embassy in China (Lockhart) to the Secretary of State

116. Embassy’s 114, November 3, noon. The Executive Yuan yesterday accepted the resignation of Yuan Liang from the Peiping Mayoralty and Sung Che-yuan has become Acting Mayor. This is almost certainly a direct result of the Japanese démarche described in the Embassy’s 105, October 30, noon. Mayor Yuan has notified the Embassy that he is leaving Peiping on the 3:05 p.m. train today.

A report is now in circulation that the Hsiangho affair may possibly be maneuvered so as to discredit Shang Chen and enhance the prestige of Sung Che-yuan. If this line of action is followed Shang will probably be the next to go.

Repeated to Nanking, by mail to Tokyo and Tientsin.

Lockhart