H. H. Kung
Encyclopedia
K'ung Hsiang-hsi (September 11, 1881 – August 16, 1967), often known as Dr. H. H. Kung, was a wealthy Chinese
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

 banker and politician
Politician
A politician, political leader, or political figure is an individual who is involved in influencing public policy and decision making...

 in the early 20th century. He was highly influential in determining the economic policies of the KMT
Kuomintang
The Kuomintang of China , sometimes romanized as Guomindang via the Pinyin transcription system or GMD for short, and translated as the Chinese Nationalist Party is a founding and ruling political party of the Republic of China . Its guiding ideology is the Three Principles of the People, espoused...

 government in the 1930s and 1940s. He was known as the richest man in China at that time.

Early life

Hsiang-hsi Kung was born in Taigu
Taigu County
Taigu County is a county of Shanxi, China. It is under the administration of Jinzhong city. It located at 37°25'N 112°33'E.-External links:*...

, Jinzhong
Jinzhong
Jinzhong is a prefecture-level city with 3,249,425 inhabitants at the 2010 census in east central Shanxi province of the People's Republic of China.-Administrative divisions:...

, Shanxi
Shanxi
' is a province in Northern China. Its one-character abbreviation is "晋" , after the state of Jin that existed here during the Spring and Autumn Period....

. He was educated in the United States. He received his Bachelor of Arts
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...

 from Oberlin College
Oberlin College
Oberlin College is a private liberal arts college in Oberlin, Ohio, noteworthy for having been the first American institution of higher learning to regularly admit female and black students. Connected to the college is the Oberlin Conservatory of Music, the oldest continuously operating...

, and a Master of Arts
Master of Arts (postgraduate)
A Master of Arts from the Latin Magister Artium, is a type of Master's degree awarded by universities in many countries. The M.A. is usually contrasted with the M.S. or M.Sc. degrees...

 and Law Degree
Legum Doctor
Legum Doctor is a doctorate-level academic degree in law, or an honorary doctorate, depending on the jurisdiction. The double L in the abbreviation refers to the early practice in the University of Cambridge to teach both Canon Law and Civil Law, the double L indicating the plural, Doctor of both...

 from Yale University
Yale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...

.

After completing his education abroad, Kung returned to his home province of Shanxi. During the 1911 Xinhai Revolution
Xinhai Revolution
The Xinhai Revolution or Hsinhai Revolution, also known as Revolution of 1911 or the Chinese Revolution, was a revolution that overthrew China's last imperial dynasty, the Qing , and established the Republic of China...

, Kung mobilized forces in support of Yan Xishan
Yan Xishan
Yan Xishan, was a Chinese warlord who served in the government of the Republic of China. Yan effectively controlled the province of Shanxi from the 1911 Xinhai Revolution to the 1949 Communist victory in the Chinese Civil War...

, helping Yan to overthrow the authority of the Qing
Qing Dynasty
The Qing Dynasty was the last dynasty of China, ruling from 1644 to 1912 with a brief, abortive restoration in 1917. It was preceded by the Ming Dynasty and followed by the Republic of China....

 government in Shanxi. Yan was soon recognized as the military governor of Shanxi by Yuan Shikai
Yuan Shikai
Yuan Shikai was an important Chinese general and politician famous for his influence during the late Qing Dynasty, his role in the events leading up to the abdication of the last Qing Emperor of China, his autocratic rule as the second President of the Republic of China , and his short-lived...

, and effectively controlled Shanxi until 1949, when the Communists took control of mainland China. After 1911, Kung became one of Yan's most trusted advisors.

After the Xinhai Revolution, Kung helped to establish a complex of Christian schools in Taigu that was supported and affiliated with Kung's alma mater, Oberlin College. After establishing this school complex, Kung became its principle. Kung's influence on Yan's thinking from 1911 onward was significant, and was a major factor in Yan's subsequent determination to modernize Shanxi. The reforms that Yan subsequently conducted won Yan widespread acclaim, and Shanxi gained a reputation during the Warlord Era
Warlord era
The Chinese Warlord Era was the period in the history of the Republic of China, from 1916 to 1928, when the country was divided among military cliques, a division that continued until the fall of the Nationalist government in the mainland China regions of Sichuan, Shanxi, Qinghai, Ningxia,...

 as being the "Model Province".

In 1922 Shanxi experienced a serious famine. Kung, as one of Yan's most trusted advisors at the time, worked closely with the American Red Cross and missionary organizations like American Mission Board and the China International Famine Relief Commission to deliver relief supplies and to improve Shanxi's infrastructure to make the delivery of relief easier. According to foreign members of the Famine Relief Commission, the collective efforts of all involved were successful in preventing what otherwise would have been an "appalling calamity", and by 1923 conditions in Shanxi returned to normal.

Minister in the Kuomintang government

Kung was an early supporter of Sun Yat-sen
Sun Yat-sen
Sun Yat-sen was a Chinese doctor, revolutionary and political leader. As the foremost pioneer of Nationalist China, Sun is frequently referred to as the "Father of the Nation" , a view agreed upon by both the People's Republic of China and the Republic of China...

, and worked with Wang Jingwei
Wang Jingwei
Wang Jingwei , alternate name Wang Zhaoming, was a Chinese politician. He was initially known as a member of the left wing of the Kuomintang , but later became increasingly anti-Communist after his efforts to collaborate with the CCP ended in political failure...

 before serving in the government of Chiang Kai-shek
Chiang Kai-shek
Chiang Kai-shek was a political and military leader of 20th century China. He is known as Jiǎng Jièshí or Jiǎng Zhōngzhèng in Mandarin....

. Kung began his career in the government of the Republic of China
Republic of China
The Republic of China , commonly known as Taiwan , is a unitary sovereign state located in East Asia. Originally based in mainland China, the Republic of China currently governs the island of Taiwan , which forms over 99% of its current territory, as well as Penghu, Kinmen, Matsu and other minor...

 as the Minister of Industry, holding this position from 1927-1928 in the Wuhan Nationalist Government, led by Wang Jingwei. After the fall of Wang's government, Kung served as the Minister of Industry and Commerce from 1928-1931 in the Nanking Nationalist Government, and later as the Minister of Finance, from 1933–1944. Kung later became the Governor of the Central Bank of China
Central Bank of China
The Central Bank of the Republic of China , known in English from 1924 to 2007 as the Central Bank of China, is the central bank of the Republic of China . Its legal and common name in Chinese is literally translated as the "Central Bank"...

, from 1933–1945. In 1927 one of his first acts in government was to balance the national budget. To raise the capital required, Kung increased the taxes on cigarettes by 50%. Several Shanghai cigarette factories demonstrated against these taxes with shutdowns. Kung also threatened to increase the salt tax by 28%.

Kung joined the central executive committee of the Kuomintang
Kuomintang
The Kuomintang of China , sometimes romanized as Guomindang via the Pinyin transcription system or GMD for short, and translated as the Chinese Nationalist Party is a founding and ruling political party of the Republic of China . Its guiding ideology is the Three Principles of the People, espoused...

 (KMT) in 1931. He served as Premier of the Republic of China
Premier of the Republic of China
The President of the Executive Yuan , commonly known as the Premier of the Republic of China , is the head of the Executive Yuan, the executive branch of the Republic of China , which currently administers Taiwan, Matsu, and Kinmen. The premier is appointed by the President of the Republic of China...

 from 1 January 1938 – 20 November 1939. Kung then served as the Vice-Premier of the Executive Yuan, from 1935-1945. Dr. Kung served as China's Chief Delegate to the International Monetary & Financial Conference in 1944, where he signed the Bretton Woods Accord during the Bretton Woods Conference at the Mount Washington Hotel, New Hampshire, in the United States. This conference established the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...

 (IMF) and the International Bank for Reconstruction and Development
International Bank for Reconstruction and Development
The International Bank for Reconstruction and Development is one of five institutions that compose the World Bank Group. The IBRD is an international organization whose original mission was to finance the reconstruction of nations devastated by World War II. Now, its mission has expanded to fight...

 (IBRD), which today is part of the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

 Group.

After his move to the central government, Kung continued to advocate for good relations between Chiang Kai-shek and Yan Xishan. Yan's opposition to Chiang during the 1930 Central Plains War
Central Plains War
Central Plains War was a civil war within the factionalised Kuomintang that broke out in 1930. It was fought between the forces of Chiang Kai-shek and the coalition of three military commanders who had previously allied with Chiang: Yan Xishan, Feng Yuxiang, and Li Zongren...

 caused Yan to formally retire from all positions of leadership in Shanxi, and to flee to the Manchuria
Manchuria
Manchuria is a historical name given to a large geographic region in northeast Asia. Depending on the definition of its extent, Manchuria usually falls entirely within the People's Republic of China, or is sometimes divided between China and Russia. The region is commonly referred to as Northeast...

n city of Dalian
Dalian
Dalian is a major city and seaport in the south of Liaoning province, Northeast China. It faces Shandong to the south, the Yellow Sea to the east and the Bohai Sea to the west and south. Holding sub-provincial administrative status, Dalian is the southernmost city of Northeast China and China's...

. Kung's tireless advocacy for Yan within the central government was successful, as Chiang allowed Yan to return to Shanxi in 1931. Chiang clearly recognized Yan as the de facto ruler of Shanxi by 1934.

In 1934 Kung stated, in response to the American "nationalization of silver", that "We also would like to nationalize silver but for China this is impossible because our Government is hampered by extraterritorial treaties. We do not want the price to skyrocket, for silver is vital to our national life."

Diplomacy with Axis powers

In 1937 Kung and two other Chinese KMT officials visited Germany and were received by Adolf Hitler
Adolf Hitler
Adolf Hitler was an Austrian-born German politician and the leader of the National Socialist German Workers Party , commonly referred to as the Nazi Party). He was Chancellor of Germany from 1933 to 1945, and head of state from 1934 to 1945...

 in June 13. Hitler told Kung that "I understand that people in China think the Soviet Union is their friend. But from our talk I understand that you, Herr Doktor, realize the danger of Communist doctrines." Kung also convinced Hitler to cancel a scheduled speech at a Nazi conference by the Japanese Emperor's brother. Kung said, "I was able to make Hitler understand that Japan wanted to dominate the world...I was able to make Hitler think twice before getting too close to Japan." While in Germany Kung stated his "deep satisfaction" with Hitler.

Hitler, Göring
Hermann Göring
Hermann Wilhelm Göring, was a German politician, military leader, and a leading member of the Nazi Party. He was a veteran of World War I as an ace fighter pilot, and a recipient of the coveted Pour le Mérite, also known as "The Blue Max"...

 and Dr. Schacht bestowed upon Kung an honorary degree, and attempted to open China's market to German exports. Hitler, Goring, and Schacht earmarked for Chinese students 100,000 Reichsmarks for studying in Germany after they persuaded an industrialist to set aside the money for that purpose. Kung, in favor of commercial credits, refused an international loan offer by Hitler.

Kung also met Dr. Hjalmar Schacht
Hjalmar Schacht
Dr. Hjalmar Horace Greeley Schacht was a German economist, banker, liberal politician, and co-founder of the German Democratic Party. He served as the Currency Commissioner and President of the Reichsbank under the Weimar Republic...

 while in Germany. Scherr told him that "German-Chinese friendship stemmed in good part from the hard struggle of both for independence." H .H. Kung said, "China considers Germany its best friend...I hope and wish that Germany will participate in supporting the further development of China, the opening up of its sources of raw materials, the upbuilding of its industries and means of transportation."

Kung also visited Roosevelt and Mussolini in 1937. Kung said "I thought Mussolini was doing great things for Italy... we got along well. I thought he would be a good ally of our Government."

During the Second Sino-Japanese War

By the time of the Second Sino Japanese War (1937–1945), Kung had achieved a reputation as an exceptionally powerful and manipulative figure within the Nationalist government. By the time that the KMT government moved to Chongqing
Chongqing
Chongqing is a major city in Southwest China and one of the five national central cities of China. Administratively, it is one of the PRC's four direct-controlled municipalities , and the only such municipality in inland China.The municipality was created on 14 March 1997, succeeding the...

, Kung was running his own secret service. The Communist Zhou Enlai
Zhou Enlai
Zhou Enlai was the first Premier of the People's Republic of China, serving from October 1949 until his death in January 1976...

, while serving as the CCP ambassador to Chongqing, was notably successful in gaining the confidence of Kung's advisor, Hu Egong, allowing Zhou to conduct his intelligence work more efficiently.

In January 1938, Kung, a 75th-generation descendant of Confucius, greeted his relative, Duke Kung Te-cheng
Kung Te-cheng
K'ung Te-ch'eng was the 77th generation descendant of Confucius in the main line of descent. He was the final person to be appointed Duke Yansheng and the first Sacrificial Official to Confucius. He helped formulate and was in charge of officiating the modern Confucius ceremony held annually in...

, who was also a descendant of Confucius, after Kung Te-cheng had fled to Hankou
Hankou
Hankou was one of the three cities whose merging formed modern-day Wuhan, the capital of the Hubei province, China. It stands north of the Han and Yangtze Rivers where the Han falls into the Yangtze...

 after the Japanese invasion of Shandong
Shandong
' is a Province located on the eastern coast of the People's Republic of China. Shandong has played a major role in Chinese history from the beginning of Chinese civilization along the lower reaches of the Yellow River and served as a pivotal cultural and religious site for Taoism, Chinese...

. After Kung Te-cheng fled, the Japanese blew up his residence on Mount Tai
Mount Tai
Mount Tai is a mountain of historical and cultural significance located north of the city of Tai'an, in Shandong province, People's Republic of China. The tallest peak is the Jade Emperor Peak , which is commonly reported as tall, but is described by the PRC government as .Mount Tai is one of the...

. TIME magazine addressed Kung Te-cheng by the title "Duke Kung", and referred to his residence as the "ducal seat".

After a string of Japanese mishaps in 1938, Kung gave a radio address in which he stated that "God is helping China!" Kung's radio speech came after reports that a Japanese attempt to seize Hankou had failed; and, with constant Chinese guerilla activity, Chinese forces had seized territory captured by Japan.

In 1944, Kung gave a speech at the China house with one of Mencius
Mencius
Mencius was a Chinese philosopher who was arguably the most famous Confucian after Confucius himself.-Life:Mencius, also known by his birth name Meng Ke or Ko, was born in the State of Zou, now forming the territory of the county-level city of Zoucheng , Shandong province, only thirty kilometres ...

's direct descendants, Dr. Meng Chih. Both were alumni of American institutions.

After the retreat of the KMT to Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...

 at the end of the Chinese Civil War
Chinese Civil War
The Chinese Civil War was a civil war fought between the Kuomintang , the governing party of the Republic of China, and the Communist Party of China , for the control of China which eventually led to China's division into two Chinas, Republic of China and People's Republic of...

, he moved to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. Kung died in 1967 in Locust Valley, New York
Locust Valley, New York
Locust Valley is a hamlet located in Nassau County, New York. Locust Valley is an unincorporated area of the Town of Oyster Bay...

.

Personal life

Kung had a habit of smoking stogies (a type of cigar). TIME magazine claimed that Kung smoked "15 Havana cigars" a day. He was a Christian.

Kung was a 75th generation descendant of Confucius
Confucius
Confucius , literally "Master Kong", was a Chinese thinker and social philosopher of the Spring and Autumn Period....

, as indicated by the generation name 祥 (Hsiang; pinyin: Xiáng). Kung's father was (1861 - 1911), a 74th generation descendant of Confucius, indicated by the generation name
Generation name
Generation name, variously zibei or banci, is one of the characters in a traditional Chinese name, and is so called because each member of a generation share that character, unlike surnames or given names...

 fan (繁).

Kung first married Han Yu-mei in 1910, but she died in 1913. In 1914 Kung married his second wife, Soong Ai-ling
Soong Ai-ling
Soong Ai-ling , or Eling Soong , eldest of the Soong sisters, was the wife of H. H. Kung , who was the richest man in the early 20th century Republic of China. The first character of her given name is written as 靄 in some texts...

, the eldest of the Soong sisters
Soong sisters
The Soong Sisters were three Hakka Chinese women who were, along with their husbands, amongst China's most significant political figures of the early 20th century...

. This marriage made Kung the brother-in-law of Soong Mei-ling, the wife of Chiang Kai-shek.
The children of Kung and Soong were :
  • Kung Ling-i (孔令儀), female
  • Kung Ling-kan (孔令侃), male
  • Kung Ling-chun (孔令俊), also known as Kung Ling-wei (孔令偉), female
  • Kung Ling-chie (孔令傑), male


The children all have the generation name
Generation name
Generation name, variously zibei or banci, is one of the characters in a traditional Chinese name, and is so called because each member of a generation share that character, unlike surnames or given names...

 Ling (令) in their names to indicate that they are 76th generation descendants of Confucius.

One of Kung's sons went by the English name of David and was fluent in English. He was born in 1917.

See also

  • Chiang Kai-shek
    Chiang Kai-shek
    Chiang Kai-shek was a political and military leader of 20th century China. He is known as Jiǎng Jièshí or Jiǎng Zhōngzhèng in Mandarin....

  • History of the Republic of China
    History of the Republic of China
    The History of the Republic of China begins after the Qing Dynasty in 1912, when the formation of the Republic of China put an end to over two thousand years of Imperial rule. The Qing Dynasty, also known as the Manchu Dynasty, ruled from 1644 to 1912...

  • Military of the Republic of China
    Military of the Republic of China
    The Republic of China Armed Forces encompass the Army, Navy, Air Force, and Military Police Force of the Republic of China . It is a military establishment, which accounted for 16.8% of the central budget in the fiscal year of 2003...


Further reading

  • Seagrave, Sterling. The Soong Dynasty. Corgi Books, 1996. ISBN 0-552-14108-9.
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