893.51/6703

Memorandum by the Chief of the Division of Far Eastern Affairs (Hamilton) of a Conversation With the Counselor of the Japanese Embassy (Suma)

Mr. Suma called by appointment. He said that information which the Japanese Embassy had received from Shanghai was to the effect that the Chinese had recently concluded a loan or some financial arrangement for $20,000,000.00 with the Chase Bank in New York City [Page 560] and that a group of Chinese bankers was coming to the United States as a financial mission to arrange for credits. Mr. Suma said that it would seem strange to him for such a loan to be made by a New York bank at this juncture and he indicated that he did not take the report seriously. I said that I had seen no recent report of any such loan. I asked whether he referred to the reports in the American papers to the effect that a mysterious group of Chinese had come to this country on a financial mission. He said that he had noticed the reports in the American papers but that quite apart from those reports the Embassy had received from Shanghai the information which he had outlined above. I said that as he was aware there were certain matters with regard to which it was appropriate for this Department to speak; there were other matters with regard to which it was appropriate that the Commerce Department or the Navy Department speak; and that in regard to the reports about this group of Chinese bankers, we commented in response to inquiry that this was a matter for the Treasury Department. I said that I had noticed in the newspapers today statements to the effect that the Secretary of the Treasury had said that he would receive a group of Chinese bankers today. I said that until the Treasury Department wished to give out further information, we had no comment to make. Mr. Suma referred to one newspaper report to the effect that T. V. Soong was a member of the Chinese party. I said that if the press report to the effect that Mr. Morgenthau would receive the Chinese group today was correct, probably the newspapers would carry the names of the members of the Chinese group.

M[axwell] M. H[amilton]