793.94/8233: Telegram

The Counselor of Embassy in China (Peck) to the Secretary of State

296. 1. Franklin Ho, director of the Political Department of the Executive Yuan, questioned by me today gave the following considered views regarding Sino-Japanese relations:

2. Negotiations ended on September 23 with complete deadlock. This deadlock cannot be broken unless Kuwashima, who arrived in Nanking this morning, brings instructions to the Japanese Ambassador to be more conciliatory.

3. Chinese informed popular opinion is that further yielding to Japan would be futile because Japan is never satisfied. Not only do the military classes and academic circles advocate armed resistance unless the Japanese demands are greatly modified but even banking circles which would feel the destructive effect of warfare most quickly and disastrously. Informant admits that the Government is not financially equipped to wage war with Japan but he believes that the Government could not retain its authority if it capitulated to the Japanese demands. With apparent sincerity he expressed the opinion that it would be preferable for the Government to meet a glorious end rather than consent to the gradual dismemberment of the country.

4. Informant felt some hope that the Japanese would realize that China had been pushed to the last extremity and would moderate their demands because he could not see what advantage Japan could expect to gain from a complete overthrow of the National Government with ensuing chaos in China.

5. Informant naturally inquired what the attitude of the American Government was toward this crisis. I replied that I had no information about this but I recalled that the Washington Conference and other past events showed the hope of the American Government that a strong and independent China would emerge. Informant observed that the present crisis calls for thoughtful and far seeing statesmanship in other countries as well as in China.

6. Sent to the Department and Peiping.

Peck