893.00/14834: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received December 30—7:37 a.m.]
545. Reference our 529, December 24, 6 p.m. The Embassy has been officially notified that, during the absence of T. V. Soong, Chiang Kai-shek, President of the Executive Yuan, will concurrently perform the duties of Minister for Foreign Affairs. Chinese and foreign observers do not expect Soong to return to China to take up his post. Quo Tai-chi appears to be eliminated for the time being as a result of internal and petticoat politics.
Chen Yi, formerly Governor of Fukien and a Japanese educated military officer, has been appointed to the responsible post of Secretary General of the Executive Yuan replacing T. F. Tsiang, American educated, former Ambassador to Russia, who was regarded as one of [Page 554] the most able and energetic younger officials of the government and whose action in endeavoring to reduce the budget incurred the disfavor of the politicians. Tsiang, however, remains as head of the Political Affairs Department of the Executive Yuan and there are reports that he may be appointed Vice Minister for Foreign Affairs temporarily. O. K. Yui, former Mayor of Shanghai, political Vice Minister of Finance, is also mentioned for that appointment. Chu Chia-hua, Minister of Organization of the Kuomintang, has been appointed concurrently Vice President of the Examination Yuan. His appointment suggests more rigid party control of government personnel. He is German educated and is considered by some to have pro-Axis leanings. Admiral Shen, lately Governor of Shantung, succeeds General Chen as Minister of Agriculture and Forestry. Liu Shan-ching, formerly superintendent of National Police and subsequently Minister of Interior, becomes Vice President of the Control Yuan.
The foregoing changes give little suggestion of any strengthening of the government for an all out war effort or to meet the economic difficulties which will now increasingly confront China, With other indications, they suggest rather a tendency toward a conservation and perhaps passive attitude in regard to military operations and pressing internal problems and a strengthening of illiberal elements preoccupied with considerations of personal and clique influence in national administrative fields. These elements appear inclined to favor a wait and watch policy toward the international scene. The Central Executive Committee authorized the Generalissimo to adjust present laws and ordinances and enact practical measures for strengthening resistance and it may be hoped that this increased authority may in some measure serve to counteract other tendencies. Dr. Kung, Minister for Finance, is still ill and his Ministry continues to be faltering and ineffective, the two Vice Ministers apparently being in a position to assume little responsibility or authority.