File No. 893.00/2751
Minister Reinsch to the Secretary of State
Peking, December 7, 1917.
Sir: In connection with my despatch No. 1775 of December 3, relating to the new Cabinet, I have the honor to report that the hopes which have been entertained for a speedy compromise between the Northern and the Southern leaders nave for the present come to naught. A conference was held at Tientsin on December 4, attended by the Northern Tuchuns, or their representatives, particularly General Tsao Kun of Chihli, General Ni Shih-chung of Anhwei, General Chang Tso-lin of Manchuria, and General Chan Huai-chi of Shantung. This conference decided that the military operations against the South should be continued with all energy, and that a force of 200,000 men should be sent against the South; moreover, that ample funds for this undertaking must be immediately provided. The latter is considered to be the gravamen of the action of this official conference. None of these generals, it must be stated, are noted for their military exploits. It is to be feared that they contemplate the hiring of large forces of coolies, primarily for the personal profit and power which will thereupon result to them individually. Aware of the fact that the finances of the country are likely to be improved by the temporary postponement of the Boxer Indemnity payments, and through further release of salt revenue, they desire to make sure that most of the funds secured in this manner by the Government will come under their control.
I have specifically reported on this matter because if any financial assistance—such as loans, postponements of payments due, etc.—is really to benefit China rather than to impose a burden or entail waste, it is necessary that precautions should be taken against the [Page 113] moneys being employed as contemplated by these Northern generals, partly for continuing internal war, partly for increasing their personal wealth and importance. The people of China are thoroughly weary of civil war, and it is to be hoped that the sane and patriotic thought of the nation will be given expression in an early arrangement for a re-united national government.
The most important men in China at present are all at the bottom of their hearts in favor of peace: General Tuan Chi-jui, Acting President Feng Kuo-chang, General Li Hsun of Nanking, and Lu Yung-ting of the South. The difficulty is in bringing them and others of like sentiments together in effective action.
I have [etc.]