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  4. Document 341

793.94/7333: Telegram

The Second Secretary of Embassy in China ( Atcheson ) to the Secretary of State

Nanking , November 1, 1935—10 a.m.
[Received 2:15 p.m.]

43. My 41, October 31, noon.25

1.
On October 31, 4 p.m. Counselor Peck was told by one of the more practically minded responsible officials of the Chinese Government that although the Government knows the general nature of the [Page 394] new “three-point program” of the Japanese Government for the conduct of Chinese-Japanese relations, details will not be known until the return in a few days of the Chinese Ambassador in Tokyo. The proposal as thus explained will be studied by a few of the most important leaders and the informant was sanguine that a middle course could be devised which would forestall both drastic action by Japan and political attacks on the Government by its critics although admitting that if the Japanese are too insistent this policy of evasion (officially known as “conciliation”) may not be successful. Informant was hopeful that a crisis in relations with Japan can be averted. As proof of this belief he said that there was talk of postponing the forthcoming Congress until November 20 whereas if a crisis were thought to be impending the Government would try to conclude these proceedings as quickly as possible.
2.
Informant stigmatized the alleged Japanese idealistic desire to rescue the oppressed population of China as a mere political hoax although it might be believed in by some of the younger Japanese military attachés and he compared it with the announced ambition of Italy to civilize Ethiopia.
3.
Informant did not deny severe financial straits of the Chinese Government but thought that if an international crisis could be averted the Government could tide over its difficulties. He did deny that conscious inflation of the currency had begun and attributed the fall in Chinese currency and bonds to other causes particularly use of threatened political crisis by interested manipulators.
4.
He said that relations with Canton would continue to be amicable since the party had decided not to insist on the abolition at this time of the boycott, Political Council and Central Executive Committee.

To Tokyo by mail.

Atcheson
  1. Not printed.↩