893.515/890: Telegram
The Counselor of Embassy in China (Peck) to the Secretary of State
[Received November 22—10 a.m.]
103. 1. In conversation yesterday afternoon Suma informed me that during the conference with Chiang Kai-shek on November 20 Ariyoshi and Suma dwelt at length on the Chinese monetary decree of November 3. They told Chiang they did not think the scheme would succeed and asked the opinion of Chiang who disclaimed expert knowledge. They said that Japanese suspicions were aroused by the prior notification given another power and pointed out that Japan was always ready to discuss such matters with China with a view to individual action by Japan or joint action with other nations. (Suma reiterated to me his own belief that the scheme could not succeed without a loan to maintain currency reserves and while he was confident that the international loan for which he said the British were [Page 645] working would not eventuate mainly because of the reported inability of France to participate, he thought it probable that the Chinese are trying to obtain from some source funds to support note issues.) Replying to his question regarding the probable attitude of the American Government toward the international loan project I replied “I thought the American Government would be interested if the other three Governments supported the idea but I did not know whether Chinese bonds would find market in the United States.”
2. Suma said that the attention of Chiang was called to the confused administrative situation in North China where at least four all-Government organs function without a guiding superior organ and numerous Chinese ex-leaders are plotting for personal advantage and it was suggested to Chiang that some sort of special administration for that area would be advantageous. He said that the replies of Chiang to the observations ma4e by Ariyoshi and himself on all subjects were evasive as they always are. (Suma remarked to me that these affairs are of course matters of domestic interest to China but the proximity of North China to Japan makes disorderly conditions there a subject of legitimate concern to Japan.)
3. To Tokyo by mail. Repeated to the Department, Peiping and the Ambassador.