Government preferred, and even that it would be made if I thought such language would be preferable; but at my last interview with the Minister of Foreign Affairs, he said that he would rather that I communicate the regulations to you. He intimated that if you then felt that they would generally receive an interpretation which would be embarrassing to the American Government, they would be changed. Possibly the question is an academic one, inasmuch as whatever language is used, the subvention is for freight moving through the Canal and the tolls as an element of expense to the shipping lines will always be one of the features taken into consideration by the Government in determining the amount of the subvention. It may perhaps be immaterial that the reference is so specific as in Article 3; nevertheless, I have thought it not unlikely that our Government would prefer a regulation that did not so clearly justify the inference that the subvention is a repayment of the Canal tolls. I await your further instructions. I have [etc.] WM. MILLER COLLIER 825.85/86 The Assistant Secretary of Commerce (Brown) to the Secretary of State WASHINGTON, July 5, 1928. MY DEAR MR. SECRETARY: I have received your communication dated June 7,° and the accompanying despatch No. 1369 of May 5, from the American Embassy at Santiago, with reference to the regulations issued by the Chilean Government for the purpose of putting into effect the law subsidizing the Chilean merchant marine service through the Panama Canal. Apparently there is no ground for any fundamental objection to the action of the Chilean Government. The fostering of national shipping by that Government, whether on routes that traverse the Panama Canal or on other routes, is of itself solely a matter of national concern. However, inasmuch as the Panama Canal is open to ships of all nations on terms of equality, it would seem preferable that the regulations issued by the Chilean Government did not take the form of providing or of apparently providing for the repayment of Panama Canal tolls. Very truly yours, 'Not printed. WALTER F. BROWN 825.85/85 The Secretary of State to the Ambassador in Chile (Culbertson) No. 907 WASHINGTON, December 5, 1928. SIR: The Department refers to despatch No. 1369 of May 5, 1928, from your mission, transmitting copies of the regulations issued by the Chilean Government for putting into effect the law subsidizing the merchant marine service through the Panama Canal, and transmits herewith for your information a copy of a letter under date of July 5 last from the Department of Commerce,' to which the despatch in question had been referred for comment. There is also enclosed, as of interest in showing that the reimbursement of canal dues is a fairly common practice among nations, an excerpt from the Dictionary of Tariff Information, page 652.8 While in the light of the information available the Department sees no occasion for any further action, it will be glad to have your further comment on the matter in case you feel that any such comment is called for in the circumstances. CHINA CONTINUED CIVIL WAR IN CHINA; OVERTHROW OF THE PEKING GOVERNMENT; AND REORGANIZATION OF THE NATIONALIST GOVERNMENT1 893.00 P. R./3 The Chargé in China (Mayer) to the Secretary of State No. 1403 [Extract] PEKING, February 20, 1928. SIR: In accordance with the Department's instruction No. 78, of October 9, 1925,2 I have the honor to submit the following summary, with index, of events and conditions in China during January, 1928: The month under review was a relatively quiet one due in part to the traditionally thoroughgoing observance of Chinese New Year, which fell on January 23rd, and in part to the cold weather which hampered military operations. The state of comparative calm was also due in large measure to lack of cohesion among the various so-called Nationalist factions. The power and influence of the Kuomintang continued to diminish during January. The importance of a group of Kwangsi militarists increased correspondingly and interest during the month may be said chiefly to have centered in its activities. The aim of the group, generally speaking, appeared to be to control Kwangtung, Hunan, and Hupeh, and then to attack the position of Chiang Kaishek. The plan was not carried out during the period covered by this report. As indicated below, some progress, however, was made in this direction. CONDITIONS IN CANTON One of the prominent Kwangsi military leaders was Li Chai-sum, whom the radical Cantonese leader, Chang Fa-kwei, had ousted from Canton in November. As it turned out, General Chang's control over the city was short-lived. His influence as well as that of the For previous correspondence concerning political conditions in China, see Foreign Relations, 1927, vol. I, pp. 1 ff. Not printed; it instructed the Minister to supplement his political reports by a brief monthly summary of events and conditions in China. 'Generalissimo of the Chinese Nationalist armies. 4 subordinates of Wang Ching-wei, who appear to have been associated with him, were undermined by the Communist disturbances which racked Canton during December and, early in January, the American Consul in charge at Canton telegraphed the Legation that Li Chai-sum had returned on the 4th of the month. It was Mr. Huston's opinion, under the disturbed conditions existing in that region, that the group headed by General Li was the greatest hope of the moderate elements of Kwangtung. The report was current that Li Chai-sum found the Central Bank emptied of all its silver reserves, several million dollars in silver having been removed by Chang Fa-kwei, by his generals, and by his political followers. It was further stated that Chang had attempted to remit half a million Mexican dollars to Chiang Kai-shek in Shanghai. On January 20th Mr. Huston apprised the Legation of a reported re-alignment of forces which, while it did not take definite shape during the period covered by this report, served at least to indicate certain of the numerous possibilities inherent in a complex situation. He stated that the Kwangsi leaders expected to call a secret conference at Canton after Chinese New Year to be attended among others by Pei Chung-hsi, Li Chung-jen, and Wu Pei-fu, the last named remaining in the background. T'ang Sheng-chih was to be restored to power and in this readjustment a combination was to emerge which would associate itself with Generalissimo Chang Tsolin against Feng Yu-hsiang and Chiang Kai-shek. The mooted plan was for Feng to be allowed to penetrate well into Shantung where he would be attacked from two sides and for Marshal Wu to draw the "Red Spears" of Honan into the fray. EVENTS IN SHANGHAI 5 6 On January 4th the American Consul General at Shanghai informed this Mission that Mr. C. C. Wu had been appointed Minister for Foreign Affairs of the Nationalist Government with instructions to proceed to the United States immediately to conclude a new treaty on the basis of the statement of the Secretary of State of January 27, 1927, in which were laid down the conditions under which the United States was willing to negotiate. In this relation it was the Legation's understanding that Mr. Frank W. Lee had been sent to the United States last autumn by the Nanking authorities on the double mission of securing American recognition of the regime he Jay C. Huston. Former commander at Hankow, who lost control to the Nanking forces in November 1927. 'Edwin S. Cunningham. 'See telegram No. 28, Jan. 25, 1927, to the Chargé in China, Foreign Relations, 1927, vol. 1, p. 350. represented and of negotiating for treaty revision. Furthermore, the Nanking Nationalist authorities appeared to envisage the possibility of affecting [sic] a diplomatic rapprochement with Peking through Minister Alfred Sze, as the potential head of a united Chinese delegation to the United States charged with bringing about a revision of existing treaties. These matters remained inchoate during January. Early in the month General Chiang Kai-shek, accompanied by Tan Yen-kai and certain other members of the Central Executive Committee of the Kuomintang, left for Nanking. Mr. Cunningham informed the Legation that before their departure it was semiofficially announced that C. C. Wu would retain the portfolio of Foreign Affairs but that Quo Tai-chi would be the acting Minister during Wu's absence. T. V. Soong was slated for the post of Minister of Finance and Sun Fo for that of Minister of Reconstruction. The Consul General stated that it was assumed from this reorganization either that Chiang Kai-shek had already received the endorsement of the Central Executive Committee of the Kuomintang or that he would do so upon its assembling in Nanking. The date of assembly was postponed again and again, however, and it did not take place during the period covered by this report. In a telegram of January 21st Mr. Cunningham reported that C. C. Wu, Sun Fo, Hu Han-min, and four other prominent Nationalists procured Section Six certificates at the Consulate General with the intention of leaving for the United States on the 25th. He expressed the opinion that this exodus indicated disappointment on the part of certain of the conservative members of the Nationalist Government and of the Kuomintang with the efforts which were being made to create a government. DEVELOPMENTS IN THE HANKOW AREA Hostilities between the Wuhan cities and the militarists of Hunan, to which reference was made in the Legation's report for December, persisted during January. Conditions along the upper reaches of the Yangtze also continued to be unsettled. The American Consul General at Hankow 10 telegraphed the Legation on January 5th that he was reliably informed that the 19th army under Hu Tsung-tu, the Wuhan garrison commander, was at that time proceeding from Hankow against Yang Sen, the Tupan of Szechwan, at Shasi and Ichang and that there was a possibility that Liu Hsiang at Chungking would cooperate in this move by Sao-Ke Alfred Sze, Chinese Minister at Washington. 10 Frank P. Lockhart. |