793.94/12211
Memorandum of Conversation, by the Secretary of State
The British Ambassador called at my request. I said to him that, as he was aware, the situation in the Far East was becoming increasingly [Page 39] dangerous and desperate, calling for the closest observation and analysis and the most careful planning; that these conditions in the Pacific area were closely tied in, especially with the German and Italian situation in Europe; that any improvement in the European situation would correspondingly affect the Far Eastern situation; that naturally we here feel the vital importance of the closest possible observation of every fact, circumstance and development which might be useful and important, especially to countries like Great Britain and the United States in dealing with the situation to the best advantage and without the risk of unfortunate delay.
I then asked the Ambassador a number of confidential questions not for the record. The Ambassador concurred in the observations I offered and indicated a disposition to collaborate and cooperate at all times to the fullest extent. He did not know anything about any plans of his Government with respect to the removal of their troops out of China or any movements of their Navy.
The Ambassador thought that the bad economic and other domestic repercussions in Rumania, following the change of government, might mean an early solution of acute conditions. He thought there was no danger whatever in any dissolution or weakening of the Franco-Russian Alliance. I urged his Government to give every consistent attention to the question of how the reciprocal trade program and the kindred policies such as further exchange stabilization and others might be carried forward by any possible means, including definite steps to loosen up exchange conditions here and there and otherwise to urge and encourage other nations to proceed to take an affirmative interest in this general movement which has for its chief purpose peace by economic appeasement. He agreed to this view and added that he would be glad to keep in touch with his Government in this connection. I further remarked that, if and when he or his Government had any special or important facts pertaining to Germany or Italy in particular in relation to the proposed program which our two Governments are sponsoring, including that of general rehabilitation in Europe, we here would be most interested to have the benefit of them. He said he would be glad to bring this matter to the attention of his Government.