ENCLOSURE NO.2.
Nol. 146
CONFIDENTIAL.
I returned to Hong Kong ten days ago. I spent about two weeks in Shanghai, and three weeks in Nanchang and Hankow. In the latter two ports I saw the prominent members of what I may call "the Nanchang clique" and "the Hankow clique" including Borodin. Borodin is of
the Hankow clique. I met him, but did not discuss
political matters with him.
Chiang Kai-shek, Chang Ching-kiang, Huang Fo and Chang Kwen are the most important members of the Nanchang clique, while Hsu Chien, Sun Fo, Tang Yin-tat T.V. Soong and Eugene Chen are predominating in the Hankow
camp.
The Hankow clique hold the view that China cannot be unified and ruled for long by a dictator, but by a party, and that party is the Kuomintang Party. They maintain that no individual, however distinguished and valuable to the Kuomintang Party, should have au
supreme power in the Government. They hold to this
view very tenaciously.
On the other hand, the leaders of the Nanchang clique consider that China to-day needs a strong man to unite and to govern it; and they think that Chiang Kai- shek is the man. The Hankow clique, under the guidance of Borodin, strongly combat this view, and believe that they hold the whip-hand, and that in the end they will triumph over Chiang Kai-shek, because they have the support of Labour whose organization is now so strong.
that