The Ambassador in China ( Johnson ) to the Secretary of State
[Received March 23—2:32 p.m.]
170. Grant Forbes called on me today. He brought a letter from his [uncle] Cameron Forbes.86 I do not know whom he represents but believe that he is working with and for a financial group of which Jean Monnet87 and T. V. Soong have been dominating and moving spirits. Forbes stated that he had been discussing with Kung possibilities of a material credit arrangement which I believe was based on China’s holdings of silver, but that Kung had made conditions so difficult that he thought his principals would not approve. Forbes stated he was awaiting reply to a telegram. He suggested to me that American Government might be well advised to grant Chinese forces aid in the form of munitions. I told Forbes that I saw no chance of [Page 526] this; that furthermore I had on all occasions attempted to make quite clear to the Chinese that they could not expect any such aid from American sources.