893.00/14226: Telegram
The Ambassador in China ( Johnson ) to the Secretary of State
[Received April 26—12:35 p.m.]
218. McHugh31 had an informal conversation with British Ambassador on April 24 in the course of which latter expressed admiration for spirit of resistance which Chinese are showing and hope for their eventual success. He commented upon difference in viewpoint in this respect which he had achieved since coming to Hankow and stated that he expected to make this place his headquarters. He stated that he had arranged with the Chinese and hoped to make similar arrangements with Japanese for use of a British plane to enable him to travel between Shanghai and Hankow. British Ambassador said he had informed Donald32 that financial circles in London (by which he doubtless meant Rogers, representative of Bank of England, who came to China with Leith-Ross33 and has since been working with Soong34 and Bank of China) had confidence in Soong and did not have confidence in Kung.35 He permitted McHugh to infer that such financial circles might find it possible to extend additional credits to China provided that Soong is disposed to assume office as Financial Minister, but stated that he would not intervene actively with Chinese in behalf of Soong.
Later on same day McHugh had lunch with Soong who informed him that British Ambassador had urged him quite frankly to iron out his difficulties with Generalissimo and resume office. Soong was apparently pleased with what he described as British Sahib’s amazing directness on short acquaintance and stated that he had seen the Generalissimo and had informed him of his willingness to assist in any way possible. He told McHugh that he would not ask for any office and would return only if invited.
The morning of April 25 Donald told McHugh that Kung had submitted his resignation to the Generalissimo.
This morning Donald informed McHugh that Soong offered to return to Ministry of Finance on conditions which were unacceptable to the Generalissimo who has now refused to accept the resignation of Kung. Chiang was quoted as saying that he could not possibly work with Soong and that if his failure to do so meant the forfeiture of foreign assistance he would accept this fact and continue to fight the enemy without such assistance.
- Capt. James M. McHugh, U. S. M. C., Assistant Naval Attaché in China.↩
- W. H. Donald, Australian adviser to Generalissimo Chiang Kai-shek.↩
- Sir Frederick Leith-Ross, chief economic adviser to the British Government.↩
- T. V. Soong, former Chinese Minister of Finance.↩
- H. H. Kung, Chinese Minister of Finance and President of the Executive Yuan (Premier).↩