893.515/1176
The Ambassador in China (Johnson) to the Secretary of State
[Received August 10.]
Sir: I have the honor to refer to despatch No. 1897 of June 12, 1936, from the Embassy at Tokyo45 concerning the recent visit to Japan of Sir Frederick Leith-Ross, and to enclose a copy of a memorandum of conversation45 which I had with Mr. Y. Suma, Counselor of the Japanese Embassy on June 29, at Nanking, on that subject. Mr. Suma was in Japan at the time of Leith-Ross’ visit there and has himself just recently returned to China.
Mr. Suma stated that Sir Frederick in conversation with Japanese officials in Tokyo had expressed opinions on the subject of international cooperation in the form of loans to China for currency and reconstruction purposes, even mentioning a possible sum for railway construction in Szechuan and Kweichow. The reply to this, according to Mr. Suma, was that whereas the Japanese Government was prepared to cooperate in international assistance to China, particularly in supplying materials, it felt that it was not safe at present to grant financial assistance to the Chinese Government because of the unstable and uncertain political situation now existing. Mr. Suma implied that the Japanese were not willing to encourage political stability which might make it possible for any one but Japan to invest money in China, and I therefore inferred that Mr. Suma was telling me that the Japanese had served notice upon England through Sir Frederick that Western Powers would lend money to China at the present time at their own peril and at the further risk of Japan’s displeasure.
Respectfully yours,