893.51/6837: Telegram
The Ambassador in Japan ( Grew ) to the Secretary of State
[Received March 11—6:55 a.m.]
132. Our 130, March 10, 8 p.m.,6 reference British currency credit to China.
- 1.
- At a meeting of the Budget Committee of the Lower House yesterday,
the Minister for Foreign Affairs, in reply to a question, gave a
report on the circumstances of the conversation which took place on
March 8 between Craigie7 and the Vice
Minister:
“When the Vice Minister asked the British Ambassador for an explanation, he said to the latter that the consequences in setting up the stabilization fund, even if such consequences might be indirect, would operate to be helpful to Chiang Kai Shek and would therefore have substantial effect on Anglo-Japanese relations. In view of that statement the Japanese Government does not propose to make a protest immediately, but it intends to follow closely for the time being the operation of the stabilization fund. From the British point of view, it can be argued that the establishment of this fund is calculated to safeguard British interests, but it also must be admitted that the fund will bring about results favorable and helpful to Chiang Kai Shek. Even in respect of such results, the question of degree must be considered. Consequently, the Japanese Government must carefully consider whether or not it should protest the setting up of a fund to support Chinese currency on the ground that such action constitutes an extraordinary act of unfriendliness on the part of Great Britain against Japan.”
- 2.
- The Foreign Minister, replying to the suggestion by a member that Japan should resort to specific diplomatic means to dissociate the United States from Great Britain, said: “It is intended to make every effort to follow a policy of friendship toward the United States.”
Cipher text by air mailed Shanghai for repetition to Chungking.