894.51 So 8/16: Telegram

The Chargé in China (Mayer) to the Secretary of State


1066. 1. I repeat for your information following telegram from commander in chief, Asiatic Fleet, dated December 2:

“From other sources as well as from press reports I have learned that in Kuomintang circles there is much concern, similar to that felt in North China, with regard to the proposed loan to Japan. Without attaching particular importance to such feeling, I believe that if American bankers make a loan to Japan for the South Manchuria Railway it will result in a lessening of Chinese good will toward the United States, additional ammunition will be given to propagandists for use against so-called foreign imperialism, and it will be more difficult to protect American interests both by diplomacy and by use of the naval forces. Any added Japanese good will would be offset by the new situation created in the Far East.

If you agree with the foregoing, I suggest that we inform our respective Departments.”

2. I am replying to the commander in chief in a telegram dated December 3, 4 p.m., to the effect that a paraphrase of his telegram of December 2 is being repeated to the Department of State for its information and that I have already fully stated my views on the subject to the Secretary of State.