893.00/13808: Telegram
The Counselor of Embassy in China (Lockhart) to the Secretary of State
[Received December 21—11:35 a.m.]
629. 1. The Shensi revolt has had the effect, perhaps temporarily only, of suspending the agitation of students at Peiping, although it is understood that rather pronounced differences have arisen among them on the question of the advisability of despatching a punitive expedition to Shensi. Although professing to believe that a more aggressive policy towards Japan is needed, the sympathy of the students on the whole appears to be with Chiang Kai-shek notwithstanding the huge demonstration staged at Peiping on December 12 (see Embassy’s No. 604, December 13, 1 p.m.)
2. There are signs that Yen Hsi Shan may emerge from the present trouble with increased power and prestige. If Chiang Hsueh-liang is finally ousted from authority there would seem to be a good prospect for the expansion of Yen’s authority since it is believed that he might be satisfactory to both factions if a drastic reorganization of the military establishment in the northwest area should become necessary as now seems inevitable. The defection of Yu Hsueh Chung from Lan-chow, reports of which are persistently reported but not yet confirmed, are most disturbing as he has long been one of Chiang Kai-shek’s most steadfast adherents.
3. Reports, apparently well-founded, continue to circulate that defections from the “irregulars” in Suiyuan to the Government side are occurring almost daily.
By mail to Tokyo.