Evening star., 1937-01-31
CHINA IS FACED
W|THNEW CONCERN
Must Worry About What
Japan Will Do About Com
promise With Reds,
Sy tie Associated Press.


SHANGHAI, January 30.-The Chi
nese government was confronted to-
day with the worrisome question Of
what Japan may do about the settle
ment of the podtico- military crisis in
Chinas Northwest, where the Central
Government was compelled to COM
promise with the Communists.
Toxic long has demanded that Nam
king make no peace with China'S ma
tive reds, threatening that Japan her
self might be compelled to undertake
their suppression if China faltered in
that task.
Factors in the settlement between
Marking and the rebellious elements
in Shensi and Kansu Provinces, an
nounced Thursday. have come to light
which, Chinese leaders fear, will draw
Japan's irritation.
There has been no. official state
ment of the terms of the settlement,
but it is the consensus of officials in
Marking that the governments seven
year war against Chinese Communists
is at an end. Authoritative sources
said Nanking had to make large
money payments to the rebel elements,
including the Communists; that it had
to agree to halt its anti-red CAM
paign and allot territory in which the
Communists would be permitted to re-
main unmolested.
Communists Recognized.
All this, it was said, means that
the National government has tacitly.
If not openly, recognized place for
the Communists in the Chinese ma
ton, and that soon they may even
have a voice in the Nanking regime
atseh.
Thus it appears the government has
paid heavily for liquidation Of the up
rising in Shensi Province and for staV-
ing of the threat of civil war. That
uprising began December u, when
troops Of Marshal Chang Hsueh-liang
and Gen. Yang Hu-chen at Sianfu.
inspired by Communists. seized the
Nanking generalissimo, Chang Kai-
shek. Gen. Chang was held l3
DAYS before he was freed to fly back to
Nanking.
Japan May 1ncite war.
Japan's possible reaction to the
compromise with the Reds casts an
ominous shadow over Markings out
look, many observers say. Nanking
leaders have expressed fear the jap
anese may use their influence to
aggravate the still dangerous situation
IN the northwest, possibly plunge
China into civil war and thereby
pave the way for Japanese military
Intervention.
Reports from Marking today said
government troops had reached the
outskirts of Sianfu in accordance
with the agreement by which they
we're to resume control Of the Shensi
capital. The erstwhile rebels were
moving into the northwestern terri
tories assigned them.
Gen. Yang Hu-chen's elaborate
trench system for holding the city
against the government forces was
being destroyed. Marking troops
hoped to have the Lunghai Railway,
main east-west trunk line, repaired
shortly to permit normal service.
Authoritative Marking sources said
the settlement Of the northwestern
crisis revealed Gen. Chang is not
the all-powerful master Of China's
destinies he was supposed to be. They
said there are several distinct groups
among high Marking officials, Of
which the strongest probably is that
which favors cooperation and COM
promise with Japan.
Power Lies With Army.
Another group consists of leaders
Of the Kuomintang. The aggressive
1y anti-Japanese element is considered
the smallest and weakest. Only
Chiang's control Of the army, 1t was
said, keeps him in order.
Reliable informants said that while
Gen. Chang was held by the rebels at
Sianfu the pro-Japanese groups COM
bined to order military to attack
Sianfu in disregard OF the generals
simo's safety. The military refused
to do this. Not, it is stated, that his
enemies-the prc-Japanese and Kuo-
mintang leaders-hoped to eliminate
Chang under the guise Of patriot
ic action. They insisted one mans
life must not be permitted to weigh
against the authority and prestige of
the government.