The Ambassador in Japan ( Grew ) to the Secretary of State
[Received November 16—12:15 p.m.]
734. 1. Although Ambassador Johnson has very likely reported on the recent conversations between Chiang Kai Shek and the British Ambassador to China, I nevertheless give the following brief summary as told me by Craigie who asked that it be communicated exclusively to the Department.
2. The Generalissimo seemed full of confidence with regard to the future proposed basis of the hostilities against Japan. He stated emphatically that the rapid fall of Canton had not been “bought” but was due to inefficiency and to the fact that expected British support had not been forthcoming. He said, however, that the fall both of Hankow and Canton had been foreseen and discounted and that China could continue the hostilities for another year.
3. Such continuance, however, would depend upon a currency loan from Great Britain or the United States or both.
4. If no such assistance is forthcoming, China will be obliged to seek other friends, namely, either (a) Soviet Russia or (b) Japan itself. He implied that if China eventually finds it necessary to throw in her lot with Japan, it will mean the future exclusion of all other foreign interests from China.
5. Craigie attaches importance to point (b) above in the light of the appeal broadcast by the Japanese Prime Minister to the Chinese nation referred to in paragraph 2 of our 728, November 15, 3 p.m.,18 paragraph numbered 2.
- Not printed.↩