793.94/8146: Telegram

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

448. Reference Embassy’s telegram 440, September 11, 1 p.m.1

1.
Wang Keh Min has definitely decided not to accept a post in North China. This decision is presumably the result of opposition by Sung Che Yuan and other Chinese elements supported by Japanese elements opposing Wang.
2.
A high Japanese official states that approval was given in July to Wang by Japanese authorities on the understanding that he would be invested by the National Government with wide powers for negotiations but that the failure of the National Government to grant Wang such powers had caused the Japanese authorities to alter their attitude. It is also possible that Wang’s going to Dairen to confer with Lieutenant General Itagaki of the Kwantung army may have offended the Japanese North China Garrison and given it further cause to turn against Wang.
3.
Wang’s decision would appear to weaken somewhat the possibility of future nominal participation by the National Government in Sino-Japanese “economic cooperation” in North China, thereby contributing to some degree to greater autonomy in the North. Also, Sung’s gratitude for Japanese support in eliminating Wang at least for the time being may make Sung more amenable to Japanese suggestions in the future.
4.
The press reports today that Chang Hu and Li Shih Hao are being considered for the post of Chairman of the Economic Committee of the Hopei-Chahar Political Council to act as principal Chinese negotiator for Sino-Japanese economic cooperation. Both these men formerly held Government positions in the Anfu regime when they allegedly made princely fortunes. Neither has a reputation for any special economic or financial ability but they are said to be obedient to orders.

By mail to Tokyo.

Johnson
  1. Not printed.