793.94/8880: Telegram
The Ambassador in Italy (Phillips) to the Secretary of State
[Received July 21—7:23 a.m.]
338. My 333, July 17, 4 p.m. The Minister for Foreign Affairs in a conversation yesterday evening stated that although he had not at that time heard that general hostilities had started in China he believed that they were inevitable. He said that from what he had heard from De Stefani (high adviser to the Chinese Republic) who had spoken with General Chiang Kai-shek it seemed certain that unless Japan should withdraw her demands China would have to “declare war” on [Japan]. Count Ciano said that knowing both countries as he did he was clearly of the opinion that the Japanese would have the upper hand in all hostilities and that the result would be the further development of the process of setting up independent provinces in China under Japanese tutelage. He added that in so far as the world in general is concerned the greatest danger lay in the threat of complications with respect to Russia.