793.94/8927: Telegram
The Counselor of Embassy in China (Peck) to the Secretary of State
[Received 5:45 p.m.]
320. My 317, July 22, 2 p.m. Informant stated that the Chinese were not especially afraid of hostilities with Japan. They feel they have better airplanes even if fewer in number. Informant thought hostilities would probably be localized in that the Japanese would entrench themselves in limited areas and would be immobilized by Chinese forces. The Japanese would derive no profit from areas thus occupied and would be exposed to enormous expense for maintenance of troops. If, on the other hand, areas of occupation were expanded the odds would be in favor of the Chinese defenders in a familiar and friendly territory. Informant added that the present complete unification of the [country] had given the Chinese great self-confidence.
A Secretary of the Italian Embassy has made the comment to me that the Ethiopians who were much worse prepared for war than the Chinese were able to prevail against the Italians with considerable efficiency for 7 months.
Sent to the Department, repeated to Peiping.