793.94/11492: Telegram

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

1702. We were told this morning by the Chief of the Far Eastern Section of the Foreign Office that the French representative at Hankow reported 3 days ago that he had been informed by the Chinese Foreign Ministry there that the Chinese Government “had accepted the German offer of a kind of mediation”. The Foreign Office understands that the Chinese say that the Germans took the initiative in making the offer while the Germans and Japanese say that the Chinese asked that the offer be made. The Foreign Office has no information concerning the terms of any proposals which may have been submitted to the Chinese by the Germans nor concerning the Chinese reaction to any proposals which may have been made. Hoppenot expressed the opinion that it would be impossible for Chiang Kai-shek to accept proposals of the nature which the Japanese are certain to make. He believes that about all that the Chinese would find it possible to accept would be an armistice and an agreement to withdraw troops from certain areas while the Japanese are certain to insist among other things upon recognition of Manchukuo.

We were shown a memorandum from the Chinese Embassy to the French Government dated November 27 which refers to conversations between the Chinese delegation at Brussels and other delegations and submits a list of war material (aeroplanes, artillery, tanks, trucks, et cetera) required by the Chinese Government as well as a request for a credit of 100,000,000 pounds to be granted by the United States, England, and France, the credit to be guaranteed by a pledge of customs and salt revenues and by the oil monopoly in China. The Foreign Office has consulted with the British concerning the reply to be made to this request and the British have said that it is simply a question of how to say “no” in the most appropriate and courteous manner. This is also the view of the Foreign Office which assumes that the United States Government will take the same line in its reply.

Hoppenot referred to the visit of Viscount Ishii saying that he arrived in Paris from Rome on December 4, was leaving today for London and would return to Paris in about 2 weeks or so. Appointments had been arranged for Ishii to call today on President Lebrun [Page 770] and on Premier Chautemps but these appointments had been canceled at Ishii’s request who explained that he wished to visit London first. French officials according to Hoppenot “will listen courteously” to what Ishii has to say.

Bullitt