793.94/15339

Memorandum by the Adviser on Political Relations (Hornbeck) to the Secretary of State

Mr. Secretary: There is attached (sent to you by Admiral Stark33) a copy of a full report which Admiral Yarnell34 made to the Secretary of the Navy under date July 20, 1939 on the subject “The Far Eastern Situation”.35 I feel moved to call to your attention some of the views which Admiral Yarnell expresses in this report, as follows:

(1)
Japan will intensify its campaign against the foreign concessions. This campaign is the major one in Japanese minds. Taking over the concessions, thus acquiring control of trade and finance and capturing the silver stocks, would be equivalent to many victories on [Page 251] the battlefield. It would also mean elimination, perhaps only temporarily, of the white race from China and would, consequently, spur Japan to greater efforts to terminate the “incident” successfully. Conversely, the effect on the Chinese Government would be disastrous. The campaign against British interests coupled with studied friendship for the United States and France is a simple-minded effort to prevent concerted action. (pages 8–9)
(2)
The Tokyo Government is generally impotent to deal with affairs in China. In many cases it is entirely ignorant of what is going on. Japan’s policies are determined by a ruthless military clique which understands nothing but force. The Commander in Chief, Asiatic Fleet, has recommended that, for every note written, there should be some increase in United States armed forces in the Far East, (page 10)
(3)
A free, stable, democratic government in China is essential to the peace of eastern Asia and our own welfare. For our safety, we cannot permit a nation imbued with the views of Japan’s ruling clique to acquire the power resultant from domination over the people and resources of China. We should support a free government in China, and our own rights in the Far East, even if it results as a last resort in armed intervention, (page 10.)
(4)
In dealing with Japan we should recognize that any action supporting the Chinese Government will receive the backing of Great Britain. (Note: This was written before the Russo-German non-aggression agreement and recent reports of Anglo-Japanese discussions looking toward basic agreement. Today Admiral Yarnell might assert that our action would in fact be to Britain’s long-time advantage. The primary emphasis in this part of Admiral Yarnell’s report was upon the essential unity of interests and the need for unity of action by the democratic countries.) The “pulling of chestnuts” is a mutual affair in the Far East and we should never become involved in disputes singlehanded (i. e. presumably, allow ourselves to be maneuvered by the Japanese into a position of isolation when British and other European interests are basically similar), (pages 11–12)
(5)
The four interested signatories of the Nine Power Treaty, i. e. France, Great Britain, the Netherlands, and the United States, should re-affirm in positive terms that no settlement will be recognized that is not in consonance with that treaty. Also, every support should be given the Chinese Government to enable it to continue the war. Chiang Kai-shek is the national hero of the great mass of the Chinese people. If his government falls, chaos will rule in China, (page 20)

Stanley K. Hornbeck
  1. Adm. Harold R. Stark, Chief of Naval Operations.
  2. Adm. Harry E. Yarnell, then Commander in Chief, U. S. Asiatic Meet
  3. Not printed.