893.515/701: Telegram
The Second Secretary of Legation in China (Atcheson) to the Secretary of State
Nanking, August 9, 1935—9
a.m.
[Received 1:31 p.m.]
[Received 1:31 p.m.]
227. First paragraph of 222, August 2, 10 a.m.22
- 1.
- The Acting Chairman of the Executive Yuan and Minister of Finance called me to his office late yesterday and inquired when the American Government would send a financial expert to China. He said he hoped such an expert would be here in time to consult with the British expert and with the expert he said the French Government is sending. He asked me to telegraph this inquiry to the Department and say that the Chinese Government would appreciate learning the name of the American expert to be appointed and the date that official would arrive in this country. Suma, he said, had told him that it was not necessary for Japan to designate an expert at this time, Japan Was geographically so near China that the appointment of a Japanese expert if advisable could be made when the others arrived. I should appreciate instructions as to what reply it is desired I make to Kung’s inquiry.
- 2.
- I mentioned having heard a story that arrangements had already been practically effected for some kind of British loan to China. Kung did not deny the story and said that any such loan would be a measure for temporary relief only and would involve only British and Chinese banks and not the two Governments. He said he did not know whether the Japanese would raise any objections to it. (Persistent rumors say that this loan if made is to be used as an equalization fund in connection with currency inflation.)
- 3.
- Kung said that the Chinese Government was expecting the Japanese military to present some demands in connection with the Luanchow incident23 and he inquired as to the attitude of the American Government toward the last 2 months’ developments in North China. As reply I used the substance of paragraph 2 of Department’s 56, July 5, 6 p.m.24 (I made similar remarks to the Acting Minister for Foreign Affairs on a suitable occasion which arose August 2.) Kung said that the Japanese would continue to create incidents and the future for China was very dark. The Sino-Japanese situation, [Page 612] he stated, profoundly concerned the entire Pacific area and would adversely affect the countries bordering that ocean. He asked me to keep him informed as to the attitude of the American Government toward the developments which would occur from time to time.
- 4.
- To the Department and Legation. By mail to Tokyo.
Atcheson