893.515/535: Telegram
The Second Secretary of Legation in China (Atcheson) to the Secretary of State
[Received 10:04 a.m.]
77. My 74, April 17, 2 p.m. A Chinese friend of several years standing who has been very frank with me, and who is a councilor of a National Government Ministry and an officer of the Executive Yuan, told me last evening that his understanding was that in January the Japanese had given China 6 months “to make good” and that over 2 months of the period have passed; that Japanese opposition to an international loan has prevented the Chinese Government from pressing for international financial assistance and from considering Japanese aid because the latter would mean acceptance of Japanese military and financial advisers and other conditions. He said also that in his opinion the Chinese Government would be forced to adopt some form of currency inflation irrespective of developments in the United States because the Chinese Government’s internal debts were greater than the external and were increasing.