493.11/1824: Telegram

The Minister in China (Johnson) to the Secretary of State

47. My despatch No. 2424, December 20.90 At my suggestion Peck91 saw Wang Ching-wei92 about Chinese attitude toward American proposal [Page 543] for claims commission. Peck reports Wang as stating that Chinese Government would feel no hesitation in matter if it could be done without creating precedent but feared Chinese acceptance of American proposal would pave the way for similar proposal from Japan. He stated that Doctor Kung93 had suggested setting up a separate department in the commission for the readjustment of domestic and foreign debts without creating a separate organization in the manner outlined by the American proposal. Another suggestion was that representatives of Chinese and American Governments enter into discussions with the nominal object in view of arranging for a new loan to which the adjustment of old debts might be incidental, it being understood by both that in actuality no new loan was contemplated.

He asked that these suggestions be communicated to the American Government for consideration and comment. Wang regretted that until difficulty was surmounted, that is, the devising of some means to avoid setting up a precedent which would be utilized by Japan the Chinese Government would not be able to return a favorable reply to the American Government’s proposal.

Johnson
  1. Despatch not printed; for its enclosure (memorandum of December 12, 1933, by the Minister in China of a conversation with the Chinese Minister of Finance), see Foreign Relations, 1933, vol. iii, p. 657.
  2. Willys R. Peck, Counselor of Legation and Consul General at Nanking.
  3. President of the Chinese Executive Yuan (Premier) and Acting Minister for Foreign Affairs.
  4. H. H. Kung, Vice President of the Executive Yuan (Vice Premier) and Minister of Finance.