CO129-502-7 China- general situation 4-3-1927 - 26-4-1927 — Page 48

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the immediate "Northern" plan seems to be to work

westwards and to clear the left bank of the Yangtse

of Nationalist troops. The Military Attache, Peking,

believes the next Northern objective to be Anking (halfway between Manking and Hankow): the National-

ists are still 100 200 miles north of Anking, but

there are signs of a Nationalist retreat back to the

Yangtse.

Chiang Kai-shek has gone to Nanking

possibly

to rally the retirement, possibly to make some arrange-

ment with the Shantung Commander. For the first time

in the campaign, Southern formations are deserting

wholesale to the "North".

(b) On the Hankow Peking railway fighting is in

progress 80 miles north of Hankow, but it is unlikely

that Chang Tso-lin will press on to Hankow until Anking

is captured.

Split in the Nationalist Party.

The military aspect of this dissension grows,

and Chiang Kai-shek apparently feels himself strong

enough to adopt an indeperdent attitude rather than to

bow to the Hankow communist-extremists

is exercised through the Labour Unions.

whose power

The army seems loyal to Chiang. At Shanghai,

Chiang has raided and disarmed the mercenaries of the

local Labour Union, but has not succeeded in eliminating

the Communist element.

the Commander-in-Chief

The IVth Army also loyal to

has occupied a strategic

position on the lines of communication between Hankow

and Canton. Even at Hankow many military elements are

ready to support Chiang.

Chiang Kai-shek is reported to have convened a

"moderate" conference at Nanking. The outcome of this

conference should throw an important light on the

stability or other se of the Nationalist politico-

military machine.

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