793.94/5316
Memorandum by the Assistant Chief of the Division of Far Eastern Affairs (Hamilton)
Dr. Frank W. Chinglun Lee called. He referred to his interview on June 2 with the Secretary and stated that the Secretary had given him some very good advice, pointing out that China must show the elements of national unity and self-control constructively and evidence an ability to achieve national unity and self-control. Dr. Lee stated that he had called to express frankly the present views of the Chinese Government and the Chinese people toward the Sino-Japanese trouble. He stated that he was in the United States not only as a representative of the Chinese Government but also as a representative of the Chinese people. He stated that he had received recent telegrams from the Chinese Foreign Minister stating that China was opposed to the convening of any conference to set up a free city at Shanghai or demilitarized zones in any part of China but that China would be glad to take part in any conference which would consider the Manchuria situation and the general situation between China and Japan. He stated that in any such conference China would be ready to submit to any third party or to arbitration or to judicial determination any questions at issue between China and Japan. He stated that China would abide by any decision reached as a result of such a conference.
Referring to the presence of Japanese troops in Manchuria, Dr. Lee stated that the Chinese Government was committed to the principle of declining to negotiate directly with Japan so long as Japanese troops remained in Manchuria outside the Railway Zone. He stated that the Chinese Government held the opinion that if China should negotiate directly with Japan while Japanese troops were stationed throughout Manchuria, such action on China’s part would be “letting down” the United States. Mr. Hamilton remarked that he did not understand that statement, as he did not think there was any objection [Page 56] on the part of the United States to China instituting direct negotiations with Japan; that so long as such direct negotiations did not result in any settlement contrary to the provisions of the Nine-Power Treaty or in a settlement dictated by military pressure, he did not see how China’s taking part in direct negotiations with Japan could be construed as “letting down” the United States. Mr. Hamilton stated that he thought it important that China should face frankly the realities of the situation and endeavor to effect settlement on a practical and realistic rather than technical basis.
Dr. Lee referred to the present temper of the Chinese people. He stated that the people would insist that any further attacks in Chinese territory by Japanese troops be met by resistance; that the Chinese nation and people had no idea of waging war but that the country was united in the intention to offer defense against any further Japanese attacks. Dr. Lee stated that no government could exist in China today which was not committed to the principle of self-defense against further attack from Japan. The Government purposed to continue to place its case in the hands of the League of Nations in the hope that the League through the present Commission of Inquiry might bring about settlement of the present dispute. He spoke with great feeling and emphasis of the fact that the whole Chinese people was committed to the idea of self-defense.
Referring again to Manchuria, Dr. Lee mentioned press reports of the Japanese Premier’s remarks to the effect that the situation in the Far East necessitated the giving of further support to the “state of Manchoukuo”. Dr. Lee stated that the Manchuria régime was simply a Japanese puppet; that it could not exist for two weeks if Japanese military support were withdrawn; that there could never be peace between China and Japan so long as the puppet state remained; that China was determined that Manchuria should remain an integral part of China; that in the face of Chinese opposition it was impossible for Japan to make the new state in Manchuria profitable to Japan; that by means of guerrilla warfare China would resist the new state; that it might take two years or five years or ten years or longer for China to regain Manchuria but that China was determined to see that Manchuria was not alienated from China.
Dr. Lee referred again to the matter of establishing a free city at Shanghai and reaffirmed that China was opposed to any such project. Mr. Hamilton remarked that as Dr. Lee well knew there were many foreigners resident in Shanghai and other large ports in China who favored the extension of the areas under foreign control. Dr. Lee interposed that there were also many Chinese who favored that idea. Mr. Hamilton stated that he was glad Dr. Lee had made that remark and added that of course some of the foreign and Chinese advocates of [Page 57] such an idea were motivated by selfish interests, such as people interested in real estate promotion, but that many of these people desired above all else the maintenance of peace and order and the assurance that life and property would be given adequate protection. Mr. Hamilton stated that the suggestions made by the Secretary yesterday were pertinent to this question and that if China could stop the civil wars and turmoil that had characterized China for the past twenty years and bring about stability and peace, the principal reason for the advocacy by certain groups in China of free cities or demilitarized zones would disappear. Dr. Lee stated that he realized the soundness of this view and he stated that recent developments in China pointed toward the discontinuance of civil war and the development of stability. He said that the merchant and industrial and banking classes had committed themselves to the proposition that there should be no more civil war in China; that this represented a nation-wide movement and feeling; and that it would be impossible for civil wars to be waged in the face of that movement. Mr. Hamilton expressed the hope that Dr. Lee’s optimism in this respect would be justified.
Dr. Lee stated that in January of this year the Chinese Government received a report that the Japanese Government had proposed to the American Government that, in view of the present trouble between China and Japan, the United States prevent the export of arms and munitions of war both to China and to Japan. Dr. Lee stated that such a proposal, if carried out by the United States, would operate to the serious disadvantage of China, which was dependent upon foreign importation of arms and munitions, but would not seriously embarrass Japan, as Japan had its own arsenals and munition factories. Mr. Hamilton stated that he had never heard of any such Japanese proposal. He remarked that we were aware of the fact that many peace organizations in the United States had advocated the discontinuance of shipments of arms to China and Japan during the present trouble but that he had never seen or heard anything about Japan advocating such action. Dr. Lee stated that the Chinese Government was most anxious that the United States should not be closed to it as a source of supply of arms and munitions. Mr. Hamilton stated that Dr. Lee was of course familiar with the present law and procedure governing the export of arms and munitions of war from the United States to China. Dr. Lee stated that he was. Mr. Hamilton said that he was not aware that any change in that law and procedure was contemplated.
Dr. Lee stated that he was in the United States and would be here during June to explain to the Chinese community in the United States the present attitude and policy of the Chinese Government toward Sino-Japanese matters, to purchase arms and munitions for the Chinese [Page 58] Government and to obtain technical assistance in this country. Mr. Hamilton remarked that Dr. Lee understood the situation in regard to the export of arms and munitions; that the Department was opposed, on grounds of policy, to American citizens going to China to fight with the Chinese armies and that American citizens who took such action might find that they had violated American laws. With regard to Dr. Lee obtaining technical assistance for the Chinese Government in this country, Mr. Hamilton stated that he understood that what Dr. Lee had in mind was to engage the services of private American citizens. Dr. Lee replied in the affirmative and Mr. Hamilton stated that the Department would consider such cases if and when they were presented to it. Dr. Lee remarked that since he had arrived in the United States a considerable number of American citizens had offered to go to China to fight with the Chinese armies but that he had consistently declined such offers. Dr. Lee emphasized that he did not wish to do anything that would run counter in any way to the policy or wishes of the Department of State and that if we ever heard that he was doing anything that we did not like, he would immediately stop such action upon being notified by us to that effect. Mr. Hamilton stated that we appreciated this attitude on the part of Dr. Lee.
Mr. Hamilton thanked Dr. Lee for calling and giving him such an interesting exposition of the present situation in China and the attitude of the Chinese Government toward the trouble with Japan.