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The Chargé in China (Robertson) to the Secretary of State

1664. Ward reports under date September 23 in substance as follows:

General Chu Shao-liang asserts rebel objective is to control four districts comprising most important parts of province, namely Hi, Kashgar, Chenghua and Tacheng. (Embassy’s 1645 to Department, repeated Moscow.) General Chu states that Turkestan [Irkistan?] is now being attacked and he predicts its capture will be followed by attack on Kashgar; he believes situation only seems better, expects negotiations will fail, and believes winter will witness more severe fighting than any so far. Ward reports fresh Chinese forces continue to arrive and defense measures are being rushed at Tihwa; evacuation of women and children continues although not at same speed as few days previously. (Sent Department, repeated Moscow.)

Ward states strong reaction against optimism of few days previously leads a Central Bank man, Commissioner of Customs and other influential Chinese to share General Chu’s conviction that rebels will request more than Chinese can concede.

Ward reports that General Chang Chih-chung, who is to return to Tihwa upon arrival of Ining delegates, is quoted in Tihwa as having [Page 1015] said that negotiations in Chungking between Government and Communists are deadlocked by claim of Communists for provinces, concurrence in which would “put China back to 1935”.

Robertson