The Battle of Budapest (1943) - Germany was desperate for China to open a second front due to the magnitude of Soviet advance into Eastern Europe.
4 May 1943 - The May 4th Compromise
While Chiang badly wanted revenge, cooler heads prevailed. After their daring escape from the Altay outpost they liaise with T.V Soong who agreed to broker a meeting with Wang Jingwei. Although the NRA had successfully pushed the Entente forces further South after months of bloody, attritional grinding warfare and an unending guerilla war - there was still a pocket of troops holding on and nobody wanted to start a two front war until Southern China was fully secured.
The May 4th Compromise was a gentleman's agreement that nobody really has a full, objective account of as the only three men that were there all subtly distorted the truth in subsequent years. But the broad consensus of historical opinion is that:
- The three men agreed to restore the pre-kidnapping status quo with Chiang as President, Wang as Premier and Soong as Prime Minister.
- All Civil Protection units would be placed under Dai Li’s command and oversight.
- It was agreed to temporarily accept Stalin’s explanation that Chiang’s kidnapping was arranged by a rogue NKVD elements in cooperation with Mongolia and to announce an investigation.
- The investigation would take as long as it took to crush the Entente resistance and then conclude that the Soviet authorities were actually responsible and then declare war on the Soviet Union.
- Simultaneous to this, Wang would continue leaking information to the Soviets that China was building up forces around the Sino-Soviet border and in the Sino-Manchurian border.
- China would actually build up forces around the Sino-Soviet border - but only combat-worthless militia troops and civil protection units. In combination with Wang’s ‘leaks’ to the Soviet Union - this would force the Soviets to transfer troops from the Polish front.
- Focus on crushing the remaining Entente resistance in the Leizhou Peninsula.
Why did they agree?
Chiang agreed because the alternative was civil war. While Chiang felt that he could win with popular support and the support of the regular army foundations, China would be weakened.
Wang agreed for a variety of complex reasons. He thought that Chiang, while his popularity had diminished could still post a formidable threat and he did not want to see China weakened.
Soong agreed because he brokered the deal and wanted to avoid a civil war. Although he was on good terms with both men, he just wanted to see an end to division.
Reactions to the May 4th Compromise:
Domestic reaction was of surprise, shock and then happiness. The news that Chiang was alive gave confidence to the army and the compromise agreement assured the population that he would not start a two front war unnecessarily.
German reaction was one of initial relief turning into a feeling of despair and betrayal. The news that Wang had been in a leading role provoked confusion and discortation. The German’s Eastern front was a string of disasters. The polish government had been reduced (ironically) to a tiny strip of the Polish corridor. East Prussia was overrun. Soviet troops were fighting in Bucharest and Budapest. Half of Slovakia was overrun. Fighting a two-front war of her own, Germany *needed* her Chinese ally to start a second front. Hitler believed that Chiang’s coup had only partially suceeded and covertly sent offers to German assistance to fully purge his cabinet. Chiang’s cryptic response back only deepened the confusion but was somewhat reassuring in that he guaranteed Chinese assistance “soon.”
Franco-British reaction was one of confusion and dread. They believed that the Soviets had abducted Chiang, but had now colluded with him after Stalin had gained maximum advantage and seized Manchuria and Persia.
For Japan it was one of concern and anger. They had lost almost all of the territory they had gained and their Manchurian concessions to the Soviets. Now they had evidence of Soviet duplicity and feared betrayal from her allies.
The new US President Henry Wallace didn’t know what to think. He liked Wang and the Chinese orders for weaponry and equipment to replace the industrial output from the wrecked Southern provinces was good for business, but outcry from the daily barrage of attrocities across the world - on all sides was getting to his and the American people’s conscience.
Soviet reaction was one of relief and paranoia. They were pleased that Wang still had a prominent role to play and that the Chinese still seemed to be accepting the Soviet line (for now) but were paranoid about Chinese deception, which was magnified by Wang’s leaks. Stalin’s decision would change the course of European and world history forever.