893.00 Nanking/111
Memorandum by the Undersecretary of State (Grew)
The Italian Ambassador read to me two telegrams from Mussolini, who had instructed him to keep in touch with this Government concerning developments in China. The first telegram referred to the demands made by the five Powers upon Eugene Chen and upon Chen’s reply and then set forth the further note to Chen proposed by the Ministers in Peking in which Chen is called upon to give an unequivocal answer to the demands of the Powers and threatening him with definite sanctions in the event of his failure to do so satisfactorily. Mussolini had instructed the Italian Minister to Peking to agree to this note if it should be accepted by the other four Powers and to use his best efforts to bring about unanimous action.
A second telegram from Mussolini stated that the British Ambassador in Rome had called upon him and had said that in order to bring about unanimity of the five Powers (obviously referring to the United States), the British Government was willing to agree to the despatch of the proposed second identic note to Eugene Chen omitting all reference to sanctions in the event of noncompliance. Mussolini had instructed his Minister in Peking that he perceived no objections to this and authorized the Minister to join with the other Ministers in presenting the identic note with or without reference to sanctions.
The Ambassador then asked me to tell him our attitude towards the recommendations of the Ministers. I thereupon read to him pages 3 and 4 of our note to Sir Esme Howard of April 22 in which we expressed our feeling that nothing is to be gained by haste in the handling of this matter and that no good purpose would be served by further pressing the demands at this time upon Eugene Chen, especially when it seems questionable whether he and his organization have the authority over the Nationalist military forces necessary to enable them to comply with the demands. As regards the [Page 209] question of sanctions, this Government is not prepared at this time to apply sanctions nor is it prepared to consider the question now. We believe that the demands which were presented to Eugene Chen were clear and direct and that no harm will come if the decision further to press them is not made until the Powers can be more certain as to the direction which events will take in China.