Wang Ching-wei and the New Chinese Government
Cabinet Information Bureau
The strength of the new Chinese Government established at Nanking under the leadership of Mr. Wang Ching-wei has been variously appraised according to the backgrounds of the reviewers. What is aimed at in these pages is to offer a few outstanding facts in connection with the political and economic resources at the command of the leader and to outline the possibilities of that Government, with a view to aiding in a correct understanding of the new situation that has developed in East Asia.
Areas under the new Central Government
Out of the twenty-four provinces of China, fifteen are entirely or partially under the rule of the Nanking Régime: these include the whole of Hopei, Chahar, Shantung, Anhwei and Kiangsu ; the greater portions of Shansi, Suiyuan, Honan, and Hupeh ; and lesser sections of Chekiang, Kiangsi, Hunan, Kwangtung ; Kwangsi and Fukien Provinces. With the consolidating of the foundations of this administration and the retreat of the Chungking régime, its influence is expected gradually to extend to the whole of China. The fifteen provinces comprise most of those which are termed wealthy with "vast land and abundant product" as the Chinese phrase goes. In density of population, richness of mineral and agricultural resources, and in respect of communications and trade, they are of far greater importance than the regions remaining under Chungking ; it was the control of those very resources, in fact, that gave General Chiang Kai-shek and his following their conviction of an ultimate victory in a long drawn-out war. It is areas such as these which naturally promote the growth of political forces, so that the two great political factions, the Kuomintang and the Communist Party, grew with these regions as their spheres of influence. The former rested their power on the commercial interests in the maritime districts and in the landed classes of the rural districts, while the latter received the support of the working classes in the cities and of the peasantry. For ten years prior to the outbreak of the China Affair, the two factions had been engaged in a desperate
struggle which ended, for a time at least, in a victory for the Kuomintang. The Communists were driven into the interior and that part of the urban populations which also formed its adherents were rendered powerless, leaving the intelligentzia to carry on their activities as the so-called Popular Front. The new Central Government thus inherits most of the territory which had been under the sway of the Kuomintang at the outset of the present Affair ; but despite certain changes that have been effected and the evidence of a greater tendency to accept Communistic propaganda, Nationalist influence remains deeply rooted in those regions.
Political Strength of Wang Ching-wei
No one determined upon the reconstruction of China can afford to disregard this influence, so that a good deal of Mr. Wang Ching-wei's political strength lies in the fact that he is the central figure in the organization of the "orthodox" Kuomintang. He parted with the more bigoted elements of that Party which, misled by the fallacious idea of building up a new China through resistance to Japan, are still directing from Chungking their reckless hostility to this country.
Early recognizing the futility of armed struggle with Japan, and understanding Japan's true motives in the creation of a New Order, Mr. Wang daringly put forward his principle of peace and national salvation, rallying to his banner those who held the same political beliefs. As a mere advocate of peace he could never have succeeded in drawing to him those who, today, are the mainstay of his Orthodox group. He had to convince them that the ideals for which he stood and stands—a peaceful China vowed to anti-Communism—made him their natural leader and the Saviour of his country. There are some who entertain fears as to the future of Mr. Wang and his Government, but they view the new régime in a false light.
Although he and his followers are denounced as traitors by both Chiang Kai-shek and the Communists, it is nonetheless certain that these opponents of his have no misconception of the true situation in China. Mao Tze-tung, the Communist leader, in recognizing the class basis upon which Mr. Wang's party has been founded, points out that "it cannot be made light of." He emphasizes likewise a danger to the anti-Japanese united front arising in the dissensions, retreats and surrenders of his partisans and the absolute necessity there is that this danger be removed.
When the enemy's estimation is the correct one it would be
deplorable indeed if those who would cooperate in the great task of rebuilding East Asia should themselves be lacking in this appreciation. Mr. Wang is the apex of that pyramid which finds its basis in the populace craving peace, and it is he who serves as their mouthpiece. When he realized the inevitability of defeat and frankly asked for peace, a number of organizers of the C. C. Corps, led by Chou Fu-hai, silently worked in concert with him behind the scenes. An able propagandist, Chou, like many of his group, had had experience in organization work under the Kuomintang. Their activities resulted in securing to the Corps a membership of 70,000 within a year, with quarters at the Shanghai Branch of the Kuomintang. They likewise did much toward the suppressing of anti-Wang terrorism.
Possibilities of the New Government
The political power of Mr. Wang Ching-wei and the new National Government may be considered from various angles. In the first place his aims, which found expression in a plain but pithy slogan that has seized the minds of the Chinese people, have inspired in them a new hope. It is because his partisans number among them men of considerable talent that Mr. Wang has been able to cope with the forces arrayed against him. In 1931, when the Manchurian Incident broke out, he adopted the slogan "Negotiation and resistance." In the early stages of the present Affair, he urged "Sacrifice" and derisively called the Communist Eighth Route Army "an idle flying army." The activity which he and his party showed in propaganda work was amazing, and the effect which the statements he made after his resolute escape from Chungking exerted on the masses has no parallel in the history of the Republic.
Secondly, his political strength resides in the aptitude for organization possessed by him and his group, a result of years of experience in that field. The presence of the former Reformists in his camp is evidence sufficient of that talent, for in itself, the latter faction lacked comprehensiveness and force. It was necessary, therefore, to make up the deficiency by enlisting the cooperation of the C. C. Corps under Chou Fu-hai.
General Chiang Kai-shek attached no less importance to the matter of internal organization. This phase of his activities had been entrusted to two brothers, Chen Kuo-fu and Chen Li-fu, and the result was the coming into being of the C. C. Corps, amply financed and gradually to grow into the Chinese Fascist Party. The organization was, however, overpowered by the Blue Shirt Society
which positively insisted on resistance to Japan. The Blue Shirt Society is a well-known political group organized by the graduates of the Whampoa Military College, and with the original C. C. Corps it formed twin organizations, both of which came under General Chiang's control. However, as the hostilities against Japan were carried on by the Kuomintang in cooperation with the Communists, the Blue Shirts, as advocates of a pro-Communist policy, gained the ascendancy causing the C. C. Corps to recede into the political backstage with anti-Communism and peace as its platform. It was the more radical element of the latter group led by Chou Fu-hai, who had escaped from Chungking, which joined Wang to reorganize themselves in Kiangsu and Chekiang provinces under the banner of the Orthodox Kuomintang, and which at Shanghai in August last held the Sixth National Congress of the Kuomintang.
Lastly, Mr. Wang and his Government are able, as was the case with Chungking, to safeguard their political standing through the establishment of a "special service" whose duty it is to bring pressure to bear upon the people in order to unify their political ideas. Such a course of action is not easily understood in Japan, but it is absolutely necessary in China. The first attempt in this connection proved fruitless, but the advent of the C. C. Corps into its ranks turned failure into success.
Three years ago General Chiang Kai-shek operated this service under the guise of the Inquiry and Statistics Bureau of the Military Council, directed by Chen Li-fu, with Ting Me-tsun and Li Shih-chen occupying the more important posts. These two were originally Communists, but dissenting, they became affiliated with the C. C. Corps to eventually join the peace-and-national salvation movement, paving the way for Mr. Wang and his adherents by the work of the "special service."
Military Strength of Wang Ching-wei
In respect of the military strength of the New Central Government, it must be admitted that, so far, it is unimportant. In fact, this characteristic of Mr. Wang's movement indicates how little he relied in the past upon the control of armed forces. Being nevertheless aware of Sun Yat-sen's motive in founding the Whampoa Military College, he felt the urgent necessity to inspire the younger officers of the new National Army with his principles and the enthusiasm for peace and national salvation ; this led him to establish the Central Military Training Corps at Shanghai in December last. He himself became its Commander-in-Chief,
with Lieutenant-General Yeh Peng, formerly commander of the Wu-Han Garrison, in direct charge. There are now 1,200 members of the corps, divided into four battalions, one of which is the political training battalion composed of graduates of collegiate institutions who, after completing a three years' course of training, will be given appointments as officials of the Central Government. From the other three will come the officers, men who had held similar posts under the Chiang régime, and who, after two years' of training, are to form the backbone of Nanking's National Army.
Financial Strength of Wang Ching-wei
The main sources of revenue of the Nanking Government are the Customs, Salt Gabelle and the Consolidated Tax. Last year the value of foreign trade was 4,200,000,000 yuan, 1,000,000,000 yuan representing exports and 3,200,000,000 yuan imports, of which 90 per cent of the outgoing and 82 per cent of the incoming passed through sea-ports coming under the rule of the new Administration. For this reason the Customs revenue alone is expected to reach a considerable sum. The greater part of the salt-producing regions as well as the industrial districts from which derives the Consolidated Tax, are in the control of the new régime. The rehabilitation of the war-stricken areas will serve to increase these receipts. As a consequence, Mr. Wang's Government will have little if any difficulty in meeting its disbursements. Deficiencies in any event will have to be raised by public loans. Nanking cannot as yet command the support of the wealthy Chekiang clique upon which General Chiang relied for his finances ; but it would seem that their hitherto important role in the political manœuvring has dwindled somewhat. There are in Shanghai today idle funds to the amount of over 6,000,000,000 yuan, the risks accompanying the investment in the interior having likewise drawn other capital to the safety of the foreign Settlement by the Whangpoo. It will be no easy task to reorganize the flow of these funds into the hands of the people.
The Chekiang clique itself was at first a small one. Its influence grew only after Chiang's mastery of Nanking, and then of Shanghai. It is interesting to recall that Chiang was once a broker and had been connected with Yu Ya-ching and Chang Tsing-ching, the veteran revolutionist leader. Through their good offices, Li Ming had been made Vice-Minister of Finance in the then Nanking Government, assisting T. V. Soong, the Minister. Judging from the history of this financial clique, there seems to be a fair possibility for the re-marshalling of Chinese capital for the purpose of developing
the country. The establishment of the Chung Wah Bank is regarded by some as a harbinger of better days to come, while a project is on foot to found a Chinese banking syndicate.
Another matter for consideration relates to the funds remitted to China by Chinese residents abroad. During the past fifty years, this income saved China from economic breakdown despite the adverse balance of trade. If the sympathy of this class for peace and national salvation is sincere their assistance may be counted upon, for it was upon such soil that the young Mr. Wang planted the first seeds of revolution when he organized over a hundred branches of the Chinese Union. His wife, Chen Pi-chun, is of such extraction. It will therefore be interesting to watch the policy the new Government will pursue in respect of those Chinese domiciled abroad.
Effects of Establishment of the New Government
The formation of a new Central Government upon a firm basis cannot but have considerable repercussions not only internally but also on the external relations of China. In the first place, how will it affect the Chiang Government ? It is well known that in Chungking today there are many who advocate peace. Moreover, men imbued with Mr. Wang's ideals and at heart adherents to his cause, make up the greater part of the C. C. Corps. These are Chou Fu-hai's comrades. Then there are the members of the Political Science Society who concur with the Corps in principle. Even among the militarists not all are Blue Shirts. Many sympathizers too may be found in Europe and America, and among them the enthusiasm for peace is so great that it must needs have its reaction upon the indifferent and even the antagonistic elements among whom they find themselves.
Again, the reign of order in the areas under Nanking will not only spell peace and contentment for their inhabitants but will eventually permeate to the populace under the Chungking régime. This phase would indeed prove the most important of all.
Finally may be mentioned the effect on foreign relations. Needless to say, Japan and Manchoukuo will be the first nations to extend formal recognition to the new Central Government. There are countries with vital interests in East Asia who may at heart be willing to do the same. Much, therefore, will depend upon the policies which the New Government pursues in its relations with those countries.