The Mukden Accident of Sept. 18, 1931, compelled the Kuomintang government into facing a dilemma of war-and-peace. Because of its own weakness in policy-making autonomy and “gatekeeper” function, KMT government hesitated as to how to reply to the invasion of Japanese troops for more than four months. This hesitation and the whole policy-making process has become a controversial issue in Sino-Japanese relations research. In this article, the author used the President Chiang Kai-shek File (the former “Ta-Chi File”「大溪檔案」) to reconsider this process, and to put forth some new analyses. In the author's opinion, this period of hesitation could be regarded as a “trial and error” process; although the Nanking government had tried many alternatives during this four months period, but never could get the consensus of factions in the KMT political system. In result, the policy outcomes tended to be ambiguous and oscillatory. Until the Shanghai campaign of 1932, this situation was allayed at last by the cooperation of Chiang Kai-shek and Wang Ching-wei (汪兆銘).