893.00/14531: Telegram

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

163. Various reliable sources who have been repeatedly canvassed during the past month by McHugh14 as to the exact state of affairs between the Central Government and the Communists insist that the tension eased about 3 weeks ago after a conference here with the Generalissimo when, despite attempts by certain Government military leaders to jockey him out of the Government, the Communist representative was permitted to air his views for 2 hours after which Chiang Kai-shek himself exhorted the conference toward greater cooperation, forbearance and discipline. A discussion as to the exact number of hsien which the Communists shall control is apparently still unsettled, the Government having agreed to increase it from 12 to 18 and the Communists holding out for more. It has been agreed, however, that their former military allowance of pay and equipment for 3 full divisions will be increased to equipment for 6 and pay for 9 such units. Chiang has been repeatedly quoted by those close to him, however, as being adamant on the point that the Communists in the future must obey the orders of the Central Government.

Report of clashes between the Communists and Central Government troops in Shansi and especially Hopei continue, it being alleged that the former forces now control all but three districts in the latter province. Nevertheless this is believed essentially to be a series of local clashes for power which are regrettable but not necessarily fatal to improved relations between their superiors. Chou En-lai15 recently returned from Moscow to Lanchow and has gone to Tenan, Shensi, and that it is believed he is expected here shortly and the general belief is that this will further ameliorate the situation although there is no specific information as to what he has learned.

Both Donald16 and T. V. Soong17 insist that the recent arrival here of Madame Sun Yat-sen18 with her two sisters from Hong Kong [Page 314] has nothing whatever to do with the Communist situation. They pointed out that although she is a rank leftist she has never been directly connected with the Eighth Route Army clique. They admit, however, that she might be receptive to appeals and prove to be a possible source of further dissension. The presence of the three ladies at this time, however, is solely for the purpose of presenting a united family front to the world during the Wang Ching-wei crisis.

It is requested that the substance of the foregoing be made available to the Naval Attaché19 and Navy Department.

Repeated to Peiping and Shanghai.

Johnson
  1. Maj. J. M. McHugh, U. S. M. C., Assistant Naval Attaché in China.
  2. Secretary General, Chinese Communist Party and Vice Commander, Chinese Soviet Military Council.
  3. W. H. Donald, Australian adviser to Generalissimo Chiang Kai-shek.
  4. Chairman, Board of Directors, Bank of China.
  5. Widow of the Chinese revolutionary leader and sister of T. V. Soong, Mme. Chiang Kai-shek and Mme. H. H. Kung.
  6. At Peiping.