893.51/6678: Telegram

The Consul General at Kong Kong (Southard) to the Secretary of State

Following from McHugh.

“Rogers32 informs me that Kung intends to have Wellington Koo present a demand at the coming session of the League of Nations on September 9 that China be granted a loan similar to those which have been made to various European countries in the past and to threaten withdrawal if the demand is refused. Informant states that he tried to point out to Kung, first, that there is no present hope of such a loan being granted since London has already rejected the idea and is the dominating influence in the League today, second, that such a plea would only give away China’s present financial crisis to Japan and encourage the Japanese to redouble their efforts in the war just at the time when they are not at all sure of themselves and, third, that the League has served China well in many ways to date and China will have real need of its assistance in the reconstruction work to follow the present conflict. Nevertheless, Kung remains bitter on the question of the failure of western nations to help China and determined to proceed with the idea.

Rogers himself then [has?] recently cabled the British representative at Geneva and suggested that the League forestall China’s action by offering to suspend her annual subscription amounting to 1,400,000 Swiss francs, getting other member states to make up the deficit in the League of Nations budget if necessary. He found an adverse [Page 557] reply to this awaiting him here on arrival but states that he hopes to approach the question from another angle and obtain favorable consideration. [McHugh.]”

Sent to Chungking.

Southard
  1. Cyril Rogers of the Bank of England.