Tempest in Chungking

From the simple, concrete-and-stucco Bank of China headquarters in Chungking came rumblings last week of a major political upheaval. While grey-gowned clerks delicately fingered their abacuses in the cold, smoky counting rooms, directors of the bank reclined in rattan chairs, sipped tea, and ousted their fiery chairman, brilliantly able Dr. T. V. Soong. Successor: his politically potent brother-in-law, Dr. H. H. Kung.

This axing abruptly ended Dr. Soong's nine-year reign as head of one of the world's great financial organizations. Chinese murmured that more was to follow: Harvard-educated T. V. seemed to be on a greased political chute, might even lose his position as Foreign Minister. Political observers recalled that among the Foreign Ministers at the Cairo Conference, T. V. was conspicuously absent.

Lesson in Failure. Eleven years ago, T. V. lost his first major struggle with astute Dr. Kung, who then replaced him as Minister of Finance. Until 1940, T. V. avoided politics. He was sent to Washington, negotiated a $100-million loan from the U.S., later secured Lend-Lease help for China, got Administration approval of Claire L. Chennault's scheme to recruit U.S. pilots for A.V.G.

Greatly admired though he was in the U.S., T. V. Soong found it difficult to maintain his prestige in China after the fall of Burma, when he could get almost no help from the U.S. Besides questions of public policy there were personal differences between T. V. and his two potent sisters, Mme. H. H. Kung and Mme. Chiang Kaishek: Mme. Kung in general represents conservative party politics and T. V. by comparison, the aggressive liberal forces. Mme. Chiang sided with the Kungs.

When Mme. Chiang visited the U.S. last year she paid relatively little attention to her brother, despite the fact that he was officially Foreign Minister of his country. T. V. had little or no influence on her. Packed Board. T. V. left the U.S. last fall, returned to Chungking, failed to patch up his differences with Chiang Kaishek. Last week, the Bank of China's board voted to increase its membership from twelve to 25, thus gave the anti-Soong, pro-Kung group decisive voting power. T. V. was forced out; H. H. was handed a post which will enable him to complete his control over China's economic life. As Minister of Finance, vice president of the Executive Yuan, head of the Central Bank of China, and now board chairman of the Bank of China, he has political and economic power surpassed only by the Generalissimo.

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