893.515/879
Memorandum by the Ambassador in China (Johnson)35
In the course of conversation today the Japanese Ambassador stated that he had postponed his intended visit north because of the fact that Sir Frederick Leith-Ross was in Shanghai and he wanted to be near by. He stated that it was his opinion that Leith-Ross had an idea of linking Chinese currency with sterling. Mr. Ariyoshi thought this would be a very difficult thing to do, and commented on the fact that the political situation in China was very unstable.
He thought a loan such as that which Kung and Soong wanted would be very difficult, not only because the Chinese Government is not stable, but also because there is no security. (I have a feeling in this connection that Mr. Ariyoshi felt that the unstability of the Chinese Government was not to be deplored in so far as it prevented the making of such a loan.)
[Page 625]I commented on the fact that the currency of “Manchukuo” had been linked to the Japanese yen. Mr. Ariyoshi stated that this was so, but that a difference existed, in that in “Manchukuo” there was a stable government and with such a stable government it was comparatively easy to stabilize the currency by linking it with the yen.
He asked me whether the United States was sending some one out to cooperate with Sir Frederick Leith-Ross, and I said that I inferred that no one would come.
- Copy transmitted to the Department by the Ambassador in his despatch No. 52, October 25; received November 18.↩