793.94/8048: Telegram

The Ambassador in China (Johnson) to the Secretary of State

356. Reference Embassy’s 353, July 10, 4 p.m.

1.
Wang Keh Min told the local United Press correspondent July 11 (not for publication) that he came to Peiping at the behest of Chiang Kai Shek; that Sung Che Yuan had been inviting him for several months to come; that the Japanese had sent several representatives urging him to come; that the purpose of his visit had been (1) to ask the Japanese what they insist on with regard to North China and how far they intend to go in respect to economic development; and (2) to ask Sung what he wants and what he intends to do; that he (Wang) thinks the Japanese sincere and reasonable in regard to their aims with respect to economic development; that in his opinion cooperation on some lines is possible and on some lines is not; that he is also investigating the Hopei Provincial Bank; that, according to a statement of the manager of that bank, it has recently increased its note issue from 3 million to close to 100 million dollars with little reserve and without the sanction of the National Government; that he will return to Nanking and report to Chiang Kai Shek; and [Page 244] that, if Nanking sees its way clear to fall in with the Japanese suggestions which he will take back, then he will return to Peiping to administer economic cooperation.
2.
Wang left yesterday for Tientsin and is expected to leave Tientsin for Nanking today.

By mail to Tokyo.

Johnson