793.94/15520
The Ambassador in China (Johnson) to the Secretary of State
[Received December 2.]
Sir: I have the honor to state that in view of my impending departure from Chungking on a tour to port cities and to Peiping I called yesterday on Dr. Wang Chung-hui, Minister for Foreign Affairs, in order to inquire whether there were any observations he wished to make to me in regard to matters of mutual interest. Mr. Peck, Counsellor of the Embassy, accompanied me.
Dr. Wang stated that he had taken up several matters with Sir Archibald John Kerr Clark Kerr, the British Ambassador, on November 9, the day before he left Chungking for Shanghai. He wished to present the same list to me as matters in which the Chinese Government [Page 317] was greatly interested. Dr. Wang then consulted a personal memorandum he had in his hand and apparently following a list of subjects detailed them to me with running comments and questions.
The Minister said that the Foreign Office had received information that the French Ambassador had received a request from the Japanese authorities that appointments of officers in the Chinese courts in the French Concession be sent to the so-called “Government” at Nanking for confirmation. The Chinese Government was apprehensive that if this requirement were met it might be the first step in compliance with the Japanese demand that the court be transferred to the authority of that organization, and that the same demand might be presented to the foreign governments concerned in connection with the courts in the International Settlement. The Chinese Government desired to state that it retained its authority over the courts in the French Concession and the International Settlement and expected that the foreign governments concerned would continue to recognize that authority. There ensued a discussion of the historical antecedents of these courts and I said that I would report to the Department of State Dr. Wang’s observations.
The Minister then stated that another phase of Japanese aggression at Shanghai was to be found in the order reportedly issued by the Japanese within the last few days restricting the importation into Shanghai of Chinese national currency. The Chinese Government hoped that foreign governments would not accept any such restriction as applicable to their respective nationals. He understood that the Japanese were ruling that permits for importations of currency would have to be applied for from the puppet authorities, and he pointed out that if this ruling were obeyed there would be an implied recognition of such authorities.
Dr. Wang said that he had discussed with the British Ambassador the possibility of financial assistance from Great Britain to China and had been informed that this type of assistance was easily possible, and in a substantial amount, but that the relations between Japan and Great Britain were such that it would be difficult for the British Government to take the lead in extending it to the Chinese Government. The Ambassador said that if the United States were to take such action and were to inform the British Government of its decision, he thought that Great Britain would undoubtedly extend credits to China or otherwise assist it financially.
Finally, the Minister for Foreign Affairs inquired of me concerning the prospects of an embargo on trade between the United States and Japan after the termination of the present commercial treaty on January 26, 1940. He observed that his information was that four separate resolutions to this end had been introduced into Congress [Page 318] and that Senator Pittman had announced his intention to introduce another in the Senate at an appropriate moment when Congress reconvened in January next. I replied that I could make no prediction regarding the action that might be taken by Congress, nor whether any action would be taken, but I said I felt it necessary to tell him that the people of the United States had a traditional dislike of embargoes on trade, dating from the early years of the 19th century, and I further observed that since trade was extremely fluid and always sought an outlet where profit was assured, it would be a task of extreme difficulty to enforce an embargo, if it were decreed.
Dr. Wang observed that with the advent of the European war and the removal of the prohibition of the supplying of munitions to the belligerents, the United States seemed to be in a position that would make cessation of all shipments to Japan of materials useful in war very easy, since not only were the European belligerents eager to acquire large quantities of munitions and materials of the sort described, but apparently the American Government was embarking on an expansion of armament that would likewise consume large quantities thus leaving a very small surplus for shipment to Japan, in any case; he had noticed that the American Government had created a “Government Priority Commission”, whose duty it would be to see that Government’s needs received prior consideration. In these circumstances the Chinese Government hoped that the American Government would find it possible to shut off all supplies to Japan and would also feel disposed to induce Great Britain and France to follow suit.
Respectfully yours,