793.94/5748: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received January 14—5:07 a.m.]
11. Certain Japanese newspapers yesterday published telegrams from Nanking to the effect that the United States has arranged to loan the Nanking Government 20,000,000 yuan for warlike preparations against Japan; also that China has arranged for a supply of arms and for economic assistance from the United States in a war with Japan and furthermore has an understanding with the Soviets for mutual defense. The telegrams do not give any indications of the interests who will supply the alleged loans. Today a Japanese newspaper states that Japan will warn the United States, Germany and other countries against supplying arms to China under present circumstances, as such action may lead to the outbreak of a world war.
Please instruct if the Department deems it advisable to take notice of these somewhat inflammatory statements in case they continue. If any official comment is to be made I believe it would have most effect here if released to the press in Washington.
Repeated to Peiping.