Chinese public opinion strongly criticized
Zhang Xueliang for his non-resistance to the Japanese invasion. While the Japanese presented a real threat, the
Kuomintang directed most of their efforts towards eradication of the
Chinese Communist Party (CCP). Many charged that Zhang's
Northeastern Army of nearly a quarter million could have withstood the Kwantung Army of only 11,000 men. In addition, his arsenal in Manchuria was considered the most modern in China, and his troops had possession of tanks, around 60 combat aircraft, 4000 machine guns, and four artillery battalions. Zhang Xueliang's seemingly superior force was undermined by several factors. The first was that the Kwantung Army had a strong reserve force that could be transported by railway from Korea, which was a
Japanese colony, directly adjacent to Manchuria. Secondly, more than half of Zhang's troops were stationed south of the
Great Wall in
Hebei Province, while the troops north of the wall were scattered throughout Manchuria. Therefore, deploying Zhang's troops north of the Great Wall meant that they lacked the concentration needed to fight the Japanese effectively. Most of Zhang's troops were under-trained, poorly led, poorly fed, and had poor morale and questionable loyalty compared to their Japanese counterparts. Japanese secret agents had permeated Zhang's command because of his and his father
Zhang Zuolin's past reliance on Japanese military advisers. The Japanese knew the Northeastern Army very well and were able to conduct operations with ease. On January 7, 1932, United States Secretary of State
Henry Stimson issued his
Stimson Doctrine, that the United States would not
recognize any government that was established as the result of Japanese actions in Manchuria. On January 14, a League of Nations commission, headed by
Victor Bulwer-Lytton, 2nd Earl of Lytton, disembarked at
Shanghai to examine the situation. In March, the puppet state of
Manchukuo was established, with the former emperor of China,
Puyi, installed as
head of state. On October 2, the
Lytton Report was published and rejected the Japanese claim that the Manchurian invasion and occupation was an act of self-defense, although it did not assert that the Japanese had perpetrated the initial bombing of the railroad. The report ascertained that Manchukuo was the product of Japanese military aggression in China, while recognizing that Japan had legitimate concerns in Manchuria because of its economic ties there. The League of Nations refused to acknowledge Manchukuo as an independent nation. Japan resigned from the League of Nations in March 1933. Colonel
Kenji Doihara used the Mukden incident to continue his campaign of disinformation. Since the Chinese troops at Mukden had put up such poor resistance, he told Manchukuo Emperor Puyi that this was proof that the Chinese remained loyal to him. Japanese intelligence used the incident to continue the campaign to discredit the murdered Zhang Zuolin and his son Zhang Xueliang for "misgovernment" of Manchuria. In fact, drug trafficking and corruption had largely been suppressed under Zhang Zuolin. ==Controversy==