COPY.

ENCLOSURE NO.1.

Memorandum by Major Hilton Johnson.

131

Commissioner General of the Shanghai

Municipal. Council.

During the last three days I have seen and held extended coversation with Dr. V.K. Ting, Marshal Sun Chuan-fang's official representative in Shanghai; Mr. Sung Hsueh-chin, his personal business and financial representative; Mr. Fu Siao-en, Chairman of the Chinese General Chamber of Commerce, a staunch henchman of Sun's with much to lose in the event of his failure in these parts; and two cantonese of the moderate wing of the Kuomintang one of them with considerable

Government experience in Canton behind him and (with C.C.Wu) a principal leader of the right

wing party in Shanghai. I have also had the benefit of hearing the views of Colonel Steward, British Military Attache, who has been closely

following the operation in Kiangsi, and who

recently arrived in Shanghai.

From these people, from certain communicatims

emanating from official sources, and from the

general trend of events as shown in the days news,

I have formed certain impressions which I now

set down for your information.

Ting appears to be philosophically resigned. He professes a certain degree of confidence in Sun's ability to retain a good deal of what he

still has left. But he also spoke of "fighting

to

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