Thursday, 4 February

Thirtieth day of the twelth lunar month

In the morning, Chen Zhenyu (陳銘樞)[1] invited me for breakfast at the Guangdong Restaurant.

The Generalissimo saw me at noon in the Huangshan. A few days ago he caught a cold and has not yet recovered. Because I would depart soon, he felt obliged to see me, and instructed me as follows. 1) The matter relating to Duzhishan oil field should be handled domestically as it was situated in China. 2) Now and after the war we should be on friendly terms and cooperate with the Soviet Union, and we should not change this direction. As our country borders the Soviet Union, we should handle all matters in this way. As long as the Soviet side is not disagreeable to us, we should certainly cooperate with them. 3) With regard to the question of Xinjiang, we must regain our sovereignty. As to the economic rights such as the wool company and the iron ore at Yining, we could yield, on the condition that they will not harm our sovereignty. On the economic aspect, we could try our best to cooperate with the Soviet Union. In case we wanted to organise a cooperation company, our share should be 51% and not negotiable. I truly hope that the Soviet Union can work with us in a sincere manner. 4) As for the garrison. It should be proposed gradually from Xinjiang, and we can catch the right timing to proclaim that the Central Government will be backing Xinjiang. 5) The aviation factory could also be proposed by the Xinjiang Government. If we can solve this matter first, the Red Army garrison of the company could retreat. During our negotiations with regard to Hami, we can take the Red Army retreat as a precedent. 6) The Japan-Soviet war couldn’t be avoided. Although the Soviets will defeat Germany, Japan will still attack the Soviet Union because Japan can not survive on its own if Germany collapses. Therefore, we should prepare for all possibilities in order to cope with any situation. At that time we could cooperate with the Soviet Union or we could enter into a military alliance with her.7) With regard to the territory and sovereignty of Outer Mongolia, we should take them back. As for the economic aspect, we could cooperate with the Soviet Union, just like the case of Xinjiang. With regard to our policy towards Outer Mongolia we should always be generous. What we proposed was to help her gain autonomy, but we did not intend to station guards there. As for our policy concerning various peoples in the border areas, I may refer to The Destiny of China which was published recently. We would certainly not adopt Xu Shuzheng (徐樹錚) [2]’s policy of oppressing Outer Mongolia. When The Generalissimo met Chicherin, the Soviet Commissar of Foreign Affairs, he told Chiang that the people in Outer Mongolia were quite wary of Chinese oppression because of Xi Shuzheng’s methods. Our party now adopts generous and helpful methods, and will give absolute equality to the border peoples. We will not only give them self government, but also provide assistance. 8) There is no need to mention the CCP problem.9) To see Stalin and Molotov, and others to convey the Generalissimo’s best wishes, and congratulate them on their recent military successes

I reported to the Generalissimo about my discussions with many sides and also my proposed journey. He asked me to stay and have lunch with him. When we talked about the affairs of the Embassy, he then instructed me that it was not right to be too frugal. As the money we spent on diplomacy was related to national grace, we should reform this and should be doing the same as the British and American Embassies. I could report to him direct to apply for extra funding if needed. Also, purchasing of black market roubles should be banned too. He was absolutely delighted that we would train more diplomats for diplomacy towards the Soviet Union at the Embassy. At the end he gave me a photo as a gift, and asked me to convey 2,000 copies of The Destiny of China to Governor Sheng Shicai (盛世才).[3]

At 2.30, I left Huangshan. At 3.30 I went to Baoqiao’s home. I talked to Chen Zhenyu. He gave me three copies of the Buddha Sutra. Jiang Chunsheng was present. He told me about Sun Fo’s hand written instructions, and said it was better for Fanny to stay in Dushiqiao. In the evening, Li Wenfan (李文範)[4] invited me to spend New Year’s Eve at his residence. I went to Wang Chonghui’s at 10.00. I returned to the hotel at 11.30.

[1] Chen Mingshu (1889-1965) was Cantonese and a military leader in the Nationalist era.

[2] Xu Shuzheng (1880-1925) was a close associate of Duan Qirui (1865-1936).

[3] Sheng Shicai (1897-1970) had studied in Japan. He was a Xinji ang Warlord.

[4] He had been a close associate of Hu Hanmin (1879-1936)