793.94/14946: Telegram
The Ambassador in France (Bullitt) to the Secretary of State
[Received May 3—1:55 p.m.]
874. The Chief of the Far Eastern Division at the Foreign Office7 in a conversation today with Wilson8 referred to the memorandum presented to Léger on April 4 by the Chinese Ambassador (see my 765, April 18, 1 p.m. and 770, April 18, 6 p.m.) and said that a reply had been made to the Chinese Ambassador to the effect that the French Government regarded the Chinese proposal as most interesting but that it seemed premature to give consideration at the present time to entering into any such agreement.
Chauvel added that in the view of the French Government it would be unwise to reply to the Chinese proposal by a categorical refusal. [Page 535] There were, in true oriental fashion, secret discussions going on more or less constantly between agents of Chiang Kai Shek and the Japanese Government concerning peace terms. If the British and French Governments should turn down flatly the Chinese proposal, Chiang Kai Shek might become discouraged and inclined to listen too favorably to the Japanese peace propositions.
In view of the present world situation any such development in the Far East would be regarded by the French as distinctly unfortunate.
As indicating that the French intend to keep the Chinese “dangling” regarding the Chinese proposal, it was mentioned that Wellington Koo saw Léger yesterday and discussed the proposal with him for over an hour.
With reference to cutting off deliveries of iron from French Indo-China to Japan, Chauvel said that strong protests had come in from Indo-China where laborers were being thrown out of work and local revenues reduced. The Ministry of Colonies was now considering whether it would be feasible to maintain this embargo in effect; if they decide in the affirmative, then the French Government having ascertained that the British Government could cut off supplies of iron from Malaya to Japan by raising the export tax would approach the United States Government to inquire if it would be possible to cut off supplies of iron from the Philippine Islands to Japan.