The Ambassador in France (Bullitt) to the Secretary of State
[Received June 3—11:30 a.m.]
723. Your 248, June 1, 7 p.m. Kung gave me an account last evening of the conversations he had had with Eden75 and Chamberlain76 with regard to the Far East. He said that Eden had sent for him and in the presence of Chamberlain had stated that he was aware that the Chinese were somewhat concerned with regard to the negotiations which Yoshida was conducting with the British Government in London.
He wished to assure him (Kung) that there was no cause whatsoever for disquiet. Yoshida had come to London and had stated that the Japanese Government desired to improve its relations with the British Government and to come to a mutual understanding with the British Government. Eden said that he had then asked Yoshida on what he proposed to base such an understanding. Yoshida had replied that it should be based on an agreement with regard to removal of British quotas against Japanese goods and on an agreement with regard to the economic development of China.
Eden said that he had replied that Japan must understand that while Great Britain was quite ready to recognize that because of Japan’s proximity to China she was in an especially favorable position [Page 603]to satisfy certain economic needs of China, Great Britain could not recognize any special position of Japan in China and had not the slightest intention of limiting Great Britain’s economic interests in China.
Kung said that both Eden and Chamberlain had assured him categorically that both the Chinese Government and the Government of the United States would be informed well in advance of any agreements that the British Government might contemplate concluding with the Japanese Government.
He believed that the British Government had no intention of recognizing Manchukuo.