893.00/14296: Telegram
The Chargé in France (Wilson) to the Secretary of State
[Received January 4—2:15 p.m.]
12. The Chief of the Far Eastern Division of the Foreign Office60 expressed the view to me last night that Wang’s61 defection has not weakened Chiang Kai Shek’s62 position and that the latter is as determined as ever to see it through to the end. His information is that the American credit and hopes of a British credit have greatly encouraged the Chinese and that Chinese morale has definitely improved in the last 2 or 3 months.
Hoppenot said that recently the Japanese Chargé d’Affaires inquired whether France would grant a credit to China. He replied that he knew of no such plan at present. He added to me that if anything of this nature were done it would be through the Bank of Indo-China but that there was nothing definite in mind at present.
He expressed the view that with the militarists on top in Japan as a result of the Cabinet shake-up the army now would make a drive on Yunnan in the hope of shutting off Chinese supplies by the Burma route which is now operating fairly effectively.
- Reference is to Henri Hoppenot, who, on October 24, 1938, was transferred from the Far Eastern to the European Section as head of Section.↩
- Wang Ching-wei, formerly Deputy Leader of the Kuomintang (Nationalist Party) at Chungking.↩
- Chairman of the Chinese Supreme National Defense Council and Leader of the Kuomintang.↩