893.51 Manchuria/56
The Chargé in France (Marriner) to the Secretary of State
[Received November 1.]
Sir: I have the honor to acknowledge the receipt of the Department’s Instruction No. 106 of September 21, 1933 (file No. 893.51 Manchuria/49), referring to Instruction No. 63 of August 4, 1933,64 enclosing a copy of an Associated Press article from Tokyo relating to the formation of the Tokyo Franco-Japanese Association to make investments in the new state of “Manchukuo,” and to the Embassy’s despatch No. 185 of August 21, 1933, reporting a conversation on the above subject which the Commercial Attaché of the Embassy had on August 19th with M. Etienne Fougère, President of the Association Nationale Pour l’Expansion Economique.
It is now noted, with reference to the above, that the Department encloses a copy of a telegram received from the American Minister at Peiping, dated September 13th, 8 a.m.,65 quoting a Reuter despatch sent on September 12th from Changchun, Manchuria, to the effect that the head of the Economic Mission sent to Manchuria by the Association Nationale Pour l’Expansion Economique and “Manchukuo” authorities had reached an understanding for the investment of French capital in “Manchukuo”. The despatch stated further that the head of the Economic Mission was proceeding to Dairen, where he would meet the Vice-President of the South Manchuria Railway Company to enter into definite conversations regarding the form of French investments, and that upon the return of the head of the Economic Mission to Paris the Association was expected to send experts to “Manchukuo” to investigate automobile and electric industries, in which French capital would probably be invested.
In compliance with the Department’s instruction to investigate the accuracy of the foregoing, I now have the honor to report that the Commercial Attaché of the Embassy had a conversation on October 14th with M. Etienne Fougère, President of the Association Nationale Pour l’Expansion Economique. The Commercial Attaché [Page 439] has informed me that M. Fougère had no hesitation in confirming the statement that he had previously made last August, to the effect that nothing whatsoever had been done in “Manchukuo” except to make certain preliminary studies with a view to determining whether an opportunity exists for advancing the economic interests of France in that area, and denied categorically that there was any foundation for the reports that had appeared in the press to the effect that an understanding for the investment of French capital had been arrived at. The Commercial Attaché informs me further that he has known M. Fougère for approximately six years and has no reason to question the accuracy of his statement. The Embassy is aware that obviously M. Fougère might have preferred not to commit himself on the subject, but as he showed no hesitancy in answering the Commercial Attaché’s question, his statement must at the present be accepted at its face value.
In connection with the foregoing, the Department may wish to note the Embassy’s despatch No. 334 of October 20, 1933,66 reporting a conversation with M. Dayras of the Ministry of Finance on the subject of war debts, French finances, and a rumored loan to “Manchukuo.”
In that despatch M. Dayras is reported to have informed a member of the Embassy that it was not likely that a loan to “Manchukuo” would be considered in France at the present time. Not only that, but M. Dayras emphasized that the large banks are practically forced to consult the Government and give consideration to its views with regard to foreign loan proposals, and that the Government would almost certainly refuse to consider at this time a loan to “Manchukuo” on either long or short terms. Should M. Dayras’ opinions be correct they would appear to substantiate M. Fougère’s statement which denies the persistent rumors concerning the activities in “Manchukuo” of the Association Nationale Pour l’Expansion Economique.
Respectfully yours,