793.94/6839: Telegram

The Counselor of Legation in China ( Peek ) to the Secretary of State

13. My January 25, 5 p.m. paragraphs 2 and 4.

(1)
The report which I quoted that Chiang announced to the Chinese bankers in Shanghai that he had decided to accept financial assistance from Japanese sources was heard Shanghai January 24 and I am informed that its credibility is regarded as doubtful by certain persons apparently qualified to judge. I will continue my attempts here to verify the report.
(2)
I am reliably informed from Shanghai that the Federal Reserve Bank made direct to the Central Bank of China [refusal?] of a loan and expressed opinion that some representative other than T. V. Soong should go to the United States to negotiate. Chinese rumor in Nanking is that Soong decided not to go to the United States to negotiate financial assistance because he feared he would not be persona grata owing to the divergence of wheat, cotton credit proceeds from constructive to military uses.
(3)
It would be most helpful to this office to receive confidential information regarding any discussion relating to financial transactions such as referred to above.
Peck