700.0011 Pacific/9: Telegram

The Ambassador in France ( Bullitt ) to the Secretary of State

737. Dr. Kung, Chinese Minister of Finance, last night said that he would like to speak to me about the proposal of Lyons of Australia with regard to a Pacific accord. He stated that he believed the moment to be most propitious for the establishment of genuine peace in the Far East. He had great confidence in the pacific intentions of Prince Konoye10 and was certain that the Emperor of Japan desired to work out a settlement of relations between China and Japan.

He went on to say that the Japanese economic and financial situation was such that Japan would soon be faced by the alternative either of [Page 984] cutting expenditures for the army and navy or facing social upheaval. The Lyons proposal would give Japan a fine opportunity to “save face” while reducing expenditures for the army and navy. He believed that it would be impossible for Japan to reduce these expenditures except in conjunction with some face saving proposal of this kind. He expressed the opinion that China would be glad to enter into agreements not only for a non-aggression pact in the Pacific but also for treaties of mutual assistance. He asked me if I believed the United States would be ready to make similar agreements. I refrained from comment other than saying that I felt certain the United States could not enter into treaties of mutual assistance.

Dr. Kung went on to say that he felt the opportunity now presented by the Lyons proposal was an enormous one and that the attitude of the Government of the United States might be decisive.

Kung has talked with Blum,11 Delbos12 and Léger.13 He asserted that they were all favorable to the idea of a Pacific pact. I ventured to suggest that at the present moment Blum is so grateful to you for your conversation last Monday with the German Ambassador14 that he will probably be glad to follow any suggestions you may care to make to him with regard to the Far East. I shall refrain from discussing the situation in the Far East with him until I receive instructions from you.

Bullitt
  1. Prince Fumimaro Konoye, new Japanese Prime Minister and formerly President of the House of Peers.
  2. Leon Blum, President of the French Council of Ministers (Premier).
  3. Yvon Delbos, French Minister for Foreign Affairs.
  4. Alexis Léger, Secretary General of the French Foreign Office.
  5. See memorandum of May 31, vol. i, p. 310.