793.94/6862: Telegram
The Counselor of Legation in China (Peck) to the Secretary of State
[Received February 9—11:10 a.m.]
27. 1. On February 7 during discussion with a responsible official of the Chinese Government the latter expressed to me the conviction that no specific demands or proposals had been presented recently to the Chinese Government although he admitted that various schemes for promoting friendly relations between China and Japan were confirmed by being discussed informally by different officials. He expressed belief that the Japanese Government is very anxious to receive some concrete evidence that China is becoming more friendly because China’s attitude toward Japan would be serious if hostilities broke out between Japan and another country, for example, Russia.
2. Suma yesterday told an American newspaper correspondent that the improvement of relations between Japan and China must be gradual because Chiang Kai-shek must overcome die-hard opposition in the Nationalist Party. He said that anti-Japanese boycott activities are going on in Nanking and that until the Chinese Government proves by affirmative acts that its attitude toward Japan has become more friendly the reassuring speeches of Wang Ching-wei and others will have no value.
3. Suma said that the present political conditions in China could not be improved unless the Chinese Government acquired confidence and the only way in which the Government could gain such instruments was by settlement of outstanding issues and by cooperation with Japan. He did not think that the Japanese Government has in mind any large loan to China but rather the advancing of funds for different projects which should be carried on by the joint action of Japan and China, that is economic cooperation.