124.93/283

Memorandum by the Assistant Chief of the Division of Far Eastern Affairs (Hamilton)

Tokyo’s telegram 101, May 9, noon, reports that the Japanese Government has decided to raise its diplomatic mission in China to the status of an embassy within the next few weeks; that the Japanese Government “would be only too pleased” if the American Government should decide to take the same step; and that publication of the Japanese Government’s decision would be held up for a week or ten days in order to afford the American Government opportunity to take, should it so desire, simultaneous action.

The question of raising our Legation in China to the grade of Embassy has been raised (usually by the Chinese) at intervals over the period of the last twenty years. Until recently, the reply of the powers, with the exception of the Soviet Union, has always been adverse. Last year the Italian Government, out of a clear sky, decided to take this step. The action of the Italian Government has been regretted by the governments of several other powers and was severely criticized by the British Government.

The fact that the Japanese Government has decided to raise its diplomatic mission in China to the status of an embassy presents a situation somewhat unlike any presented heretofore. The raising by [Page 510] the Soviet Union and by Italy of their diplomatic missions to the grade of embassy has had in China no great effect toward raising the prestige of those countries nor toward lowering the prestige of countries such as the United States, Great Britain, Japan and France. However, should Japan’s action be not followed by similar action on the part of the other principally interested powers, it is believed that Japan’s prestige would be enhanced and the prestige of the United States and other countries would be lowered. Moreover, should the United States not take similar action, it would be a reasonable supposition that the ill-will toward the United States which has been engendered in China—in some quarters at least—as a result of the American Government’s silver purchasing program,6 might be accentuated.

In this connection it is pertinent to recall that in 1934 the total trade of China with the United States amounted to $124,803,000, 23.2 per cent of China’s total foreign trade; imports from the United States accounting for $92,622,000, 26.1 per cent of the total foreign imports; and exports to the United States accounting for $32,181,000, 17.6 per cent of the total exports. China’s total trade with the United States is a little less than double its total with Japan and a little more than double its total with Great Britain. In terms of American trade, American exports to China average about four per cent of our total exports and American imports from China average three per cent of our total imports.

The principal considerations against taking this action in the past have been (a) that China’s position both in internal affairs and in international relations has been so unsettled that there has appeared no warrant for taking a step of this sort which under ordinary circumstances would signalize satisfactory progress, and (b) that such a step would increase the cost of its diplomatic representation for each of the countries concerned.

In order to elevate the Legation in China to an Embassy, it is necessary only for the President to appoint, by and with the advice and consent of the Senate, an Ambassador, and for the Congress to change the appropriation by providing a salary for an Ambassador instead of for a Minister.

The action of Japan in giving us prior notice in regard to its decision is cooperative and considerate.

The Japanese Government has given similar notice to the British, the French and the German Governments. As the British Government has in the past approached us in regard to this general question through its Ambassador here in Washington, it may be anticipated [Page 511] that the British Ambassador will call shortly at the Department to discuss the matter. If and when the Ambassador calls, FE7 suggests that it would be well to ascertain the attitude of the British Government and to be disposed toward taking action along the lines of that which the British Government may take.

It is believed also that this matter should be referred to the President; FE is preparing a draft letter to him.8

In case the American Government definitely contemplates raising our Legation in China to the grade of Embassy, we should, in conformity with informal understandings arrived at in the past, consult with the other interested governments.

M[axwell] M. H[amilton]
  1. See section entitled “Problem of China’s Economic Reconstruction,” pp. 526 ff.
  2. Division of Far Eastern Affairs, Department of State.
  3. Not printed; it was delivered by hand to the President on May 15.