800.51/1106
Memorandum by the Secretary of State of a Conversation With the Chinese Minister (Sze)
During his call the Minister said that he had been instructed to come to see me and express special concern at the recent Borah Evolution89 which would prohibit any sort of loan to any part of the world outside the Western Hemisphere, including China. He added that his Government was seeking to ascertain how far the British Government would be willing to go, and that then his Government would specify in detail just what its needs and desires in a financial and economic way might seem to be.
I inquired what the attitude of the Japanese Government was.
He replied that he had heard of no reaction at all on the part of that government.
[Page 577]I suggested that the Minister need not become seriously concerned about the Borah Resolution so long as it was as broad in its provisions as at present, according to my best judgment. I added that it would not permit a citizen of the United States to sell a bill of goods on 30 days’ credit to any part of the world outside this hemisphere, and that I could not believe Congress would think of going so far, which would mean practically the destruction of all the international trade we now had and in addition that which we expected to have. I concluded with the statement that I had heard nothing directly about the Borah Resolution or what the real intentions were of the dominant elements in Congress relative to its disposition.90