700.0011 Pacific/10: Telegram

The Ambassador in the United Kingdom (Bingham) to the Secretary of State

356. I saw Cadogan late yesterday who referred to his conversation with me, reported in my 292 of May 18, 6 p.m.,15 and said that Lyons’ statement regarding the pact of non-aggression in the Pacific had been reviewed by subcommittee of the Imperial Conference and would be discussed in the conference early this week. Cadogan expected the conference would make a recommendation varying somewhat between a Nine Power Pact of non-aggression in the Pacific outlawing war and containing a consultative provision, and a mere extension of the present Four-Power Treaty (which now could be denounced [Page 985] within 12 months). Cadogan agreed to let me know as soon as possible the decision of the conference and he emphasized that the attitude of the United States was of paramount importance and the British Government would in due course approach Washington on the question.

As regards Chinese negotiations for a loan in London, Cadogan said the 2,700,000 pounds Canton-Meishan loan, details of which had already been submitted to the various consortium groups, although still under negotiation in the matter of final security, was virtually settled. Meanwhile Kung’s negotiations with Treasury had gone on (see Embassy’s 341, June 3, 4 p.m.)16 but were not completed. The Foreign Office understands Kung will visit the United States and return to London about mid-July during which time it is expected the negotiations on this loan particularly in the matter of satisfactory security will continue. Cadogan said that the other loans proposed by the Chinese Minister for Railways were merely remote possibilities and in any case in all these negotiations Kung also held the whip hand since even in the matter of railway loans the question of final security was one which fell within his province.

Copy to Paris.

Bingham
  1. Ante, p. 102.
  2. Not printed.