Attitudes of Various Factions Within the Kuomintang and Our Dispositions

(December 25, 1940)

(1) Given his internal and external circumstances, Chiang Kai-shek can only adopt an offensive-defensive posture, making a big show but striking only lightly. Therefore, it is advisable to delay our reply telegram, dragging things out until the end of January before addressing the matter.

(2) Hu Zongnan has no will to fight whatsoever. From this, the attitude of other Central Army units can be inferred. For instance, Bai Chongxi has also softened; their side will have no choice but to turn things around on their own.

(3) The He Yingqin faction and the CC faction want to fight; both are pro-Japanese groups. However, if the Central Army and the Guangxi Army are unwilling to fight, then the pro-Japanese faction can do nothing. We should use every means to inform the commanders of the Central Army and the Guangxi Army of the pro-Japanese faction’s conspiracy, which fears no chaos under heaven.

(4) Nan Hanchen has already carried out some work in Xi’an. Hu and his subordinates have hosted Nan at banquets four times, welcoming and seeing him off with full courtesy, and stated face-to-face that they are unwilling to fight.

(5) According to the information obtained, Tang Enbo’s troops also have very little interest in fighting. To date, the Guangxi Army has only the four regiments of the 138th Division east of the Huainan Railway, scattered in complete disarray. The 172nd Division is still halted near Shou County, while the other four divisions are separately stationed in Huoqiu, Lu’an, Shangcheng, and Gushi, with no news whatsoever of an eastward advance. Although Li Xianzhou is preparing to advance toward Dangshan, there is still no definite information on when he will set out.

(6) Hostilities in northern Jiangsu have now ceased. We hope to explain to Liu Weizhang and demand that Li Xianzhou and Mo Dehong be stopped from advancing eastward; otherwise, a major clash will be unavoidable.

(7) The 345th Brigade of our 115th Division has already arrived in northern Jiangsu. It is now being concentrated for training and reorganization, together with the units of Huang Kecheng and Chen Yi, under a unified structure. After one or two months, their combat effectiveness will certainly be greatly enhanced. Then, with the main force

[1] This is a circular issued by Mao Zedong to within the Party.

Attitudes of Various Factions Within the Kuomintang and Our Dispositions

advancing westward, we will teach the Guangxi Army a lesson. We hope to hint to Bai Chongxi that if he wishes to maintain friendship, he should withdraw Mo’s division.

(8) Yang Dezhi’s brigade can arrive in northern Huai within one month, and three regiments from southern Anhui are also moving north. This will be sufficient to deal with the attacks by Chiang and the Guangxi clique. As long as Chiang does not capitulate, a large-scale military advance is impossible; it will always be nothing more than a big show and light strikes.

(9) Wang Shiying has returned to Yan’an from Yan Xishan’s place. According to him, the personnel and radio station of our office detained by the Central Army have been released and moved east of the river, staying together with Yan; the cipher code was also not lost. This incident originated from the so-called attack by our army on Taiquan Village. In reality, on the evening of the 27th of last month, a peasant family in that village had four head of cattle returning from grazing. In the dim darkness, they could not be clearly distinguished. The defense troops of the 61st Division mistook them for a cavalry attack by our forces from Linzhen Town and opened fire along the entire line for a time, then fled. The garrison troops of more than a regiment holding the blockhouses along the Yunyan-Taiquan line retreated in disorder toward Yichuan City, causing a great uproar. Division Commander Zhong, in his panic, detained the personnel of our office. Wang Shiying, who happened to be at Yan Xishan’s place, was not arrested. Realizing the incident arose from a misunderstanding, the division released them after four days of detention, declaring it a misunderstanding. It seems the Central Army has no fighting spirit; how could it possibly fight? This incident, which stirred up trouble all the way to Xi’an and Chongqing, was really nothing more than an attack by four head of yellow cattle.