793.94/7826: Telegram
The Counselor of Embassy in China (Peck) to the Secretary of State
[Received April 6—10:45 a.m.]
82. 1. On April 4th McDaniel of the Associated Press had long interview with Suma for background purposes only. Suma stated he did not think the Japanese military intended to take any decisive step in the near future to overcome Chinese refusal to come to friendly understanding with Japan but he said he was warning the Chinese in a friendly way that so long as the Chinese Government refuses to accept at least in principle Japan’s offer of friendly cooperation there will exist the possibility of a grave disaster to China more serious probably than the mere creation of a second “Manchukuo” in North China would be. Japan insists that China shall make its relations with all other nations subordinate to those between China and Japan and until this principle is accepted there can be no settlement of comparatively minor issues such as the smuggling in North China although if China once capitulates such details will be settled at once and easily. Japan regrets and distrusts Chinese Government’s continued purchasing of expensive war equipment since possible enemies are few [Page 104] and Japan is obviously one of them. Suma said that while Chinese-Japanese relations are in the present stalemate he is directing all his efforts at the creation of good will through personal contacts with Chinese officials. Nevertheless it is the personal belief of Suma that Japan will have to use force against China before China will consent to accept Japan as their friend and guide.
2. Referring to the policies of other nations in China Suma said that it seemed to him that the United States is coming to adopt a sensible and satisfactory attitude, that is, one of abstaining from entanglement in Far Eastern issues similar to the policy of Japan in the Western Hemisphere. Great Britain, however, still seeks to perpetuate a traditional leading position in China and the Japanese Government must devise means of causing Great Britain to recognize that Japan, not Great Britain, is now the leading power in the Far East. Great Britain does not appear to realize that Japan has powerful means of reenforcing its arguments such as by interfering with textile markets in India.
3. To Peiping by mail.