First, and most immediately, it seemed likely that any compromise settlement would involve his government formally ceding control of the former capital. This was not like giving up Manchuria. The establishment of Manchukuo had been a huge blow to China’s prestige, but not a disaster. Chiang had all but recognized the Japanese client state by 1933. Beiping was a different matter. Under its former name of Beijing, the city had been a national capital for centuries. Although its political importance had waned, it was still a place of immense cultural and emotional significance to many Chinese.
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