Foreign Relations of the United States Diplomatic Papers, 1934, The Far East, Volume III

793.94/6728

[Washington,] April 24, 1934.

1.: In connection with consideration of attitude and action in rejoinder to the action taken last week by the Japanese Foreign Office, it [Page 129] should be kept in mind that the United States Fleet is now no longer in the Pacific Ocean (Note: It is now possible for the jingoes and chauvinists of the Navy faction in Japan to be, if they choose, more audacious than at any time since the spring of 1932).
2.: There should be kept in mind the facts that the U. S. cotton and wheat “loan” to China and the extensive sale to China of American airplanes, together with employment by China of American aviation instructors, have figured prominently among the developments in China which the Japanese have viewed with misgiving and of which they complain. The “loan” was made during the present Administration, by the R. F. C.,42 without the approval of the Department of State; and the Far East personnel of the Department went on record at that time with warnings in regard to it. The sale of airplanes to the Chinese and employing by the Chinese of American aeronautic personnel were actively promoted under the Hoover Administration, by the Department of Commerce, notwithstanding indications of misgiving by this Department and definite expressions of opinion advising against it by Far Eastern personnel of this Department.

S[tanley] K. H[ornbeck]