Oral Statement by the Under Secretary of State (Phillips) to the Japanese Ambassador (Saito)

Last week we were informed by the British Ambassador of an inquiry made to the British Government by the Japanese Government relating to the financial situation in China and of the reply made and the action taken by the British Government in response to that inquiry.

It is our understanding that the British Government has expressed to the Japanese and the Chinese Governments and to us, in substantially identical terms, its views with regard to this matter and that it has solicited the views of interested governments. We informed the British Ambassador that our views in regard to the question of possible financial assistance to China are in substantial accord with those communicated by him on behalf of his Government to us; that we believe that financial assistance to China, if rendered, should be on the basis of some sound plan and might best be extended by cooperative action on the part of the powers most interested and concerned. We have made known our views in this sense in reply both to the British inquiry and to an inquiry from the Chinese Government.