793.94/5766: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received January 18—4:32 a.m.]
17. My 14, January 17, 4 p.m. With reference to the announcement of the Japanese War Office that the “United States” is supplying automobiles and aeroplanes to China, the United Press correspondent in Tokyo asked the War Office to explain whether by the “United States” they referred to the United States Government or to American commercial firms. The War Office spokesman stated that they referred to American commercial firms but on the 16th he issued the statement to the Japanese press to the effect that the “United States” was supplying China through private firms in Shanghai, conveying the impression that these were governmental transactions conducted under cover of private firms and adding that the material was being purchased by Chang Hsueh-liang.
The Embassy believes that the War Office is doing this deliberately for the purpose of arousing public sentiment in favor of the Army’s request for large additional sums in the next budget.
Repeated to Peiping.