Foreign Relations of the United States Diplomatic Papers, 1941, The Far East, Volume V

893.24/1047: Telegram

The Ambassador in China (Johnson) to the Secretary of State

Chungking, April 17, 1941—11 a.m.
[Received 6:15 p.m.]

140. Generalissimo asked me and McHugh to visit him last evening and during long conversation asked me to communicate to you and to the President the following as his comments on developments in relation to American aid to China. He began by remarking that a month and a half had passed since Mr. Currie’s visit without concrete results and that while China was grateful for the friendly attitude and sympathy of the United States he had suffered no little embarrassment due to constant inquiries from Chinese press for details [of] aid to be granted. He remarked that Russian Ambassador³⁶ frequently inquired as to what materials were being made available and said that his officers reported sarcastic remarks made by Russian advisers to the effect that when the war was over supplies would be available from the United States. He stated that he had been reluctant to discuss these matters with me except that the understanding that signing of the neutrality agreement between Russia and Japan³⁷ had caused a good deal of feeling among intellectuals and it was his hope that something concrete might be done to make evident that American aid was of a concrete nature. The Generalissimo asked me to state that up to yesterday at least Russian aid was continuing and I gathered that he did not expect it to cease although it was evident from his remark that he was watching that situation closely.

The Generalissimo stated that the Chinese Ambassador and Soong would be seeing the President shortly and that in connection with that interview he wanted to make two points to me which he hoped I would report:

1st. As regards military supplies. He stated that he hoped that the American Government would prepare a schedule of materials to be made available over a period of time which the Chinese could count upon, a schedule which would indicate what materials would be first made available. He hoped that planes for instance would be among the first.

2d. As regards economic aid. He reminded me that last December the Government of the United States expressed [announced?] that it was granting a 50 million dollar currency stabilization loan to China.³⁸ While there had been considerable negotiation in the course of which it appeared that the Treasury Department instead of making the full amount of 50 million available offered an arrangement whereby the sum would be doled out in lots of first 20 million and then 5 million periodically. He stated that he had instructed Soong not to accept this arrangement as it indicated lack of confidence in China. He pointed out that [he?] had accepted the American requirement that K. P. Chen³⁹ should be Chairman of the Currency Board and the deposit of the money in American banks. It was evident that his pride had been hurt in this matter. He said over and over that the full amount should be made available thereby showing confidence in China and in the Chinese Government at this time when such confidence would do so much in the government’s war of resistance. It was especially important just at this time following the Russo-Japanese agreement. He expressed the hope that I would make clear these points and his hope that the American Government would carry through its promise of last December and make the whole of the 50 million currency stabilization fund available.

I gained the distinct impression that the Generalissimo’s pride has been deeply hurt because his confidence of the reality of American aid has been questioned not only among his own people but evidently from Russian sources. I venture to express the hope that steps can be taken to meet this confidence with confidence. There is a deep Chinese feeling that China has won a right to be treated as an equal among the nations fighting for their rights.

Johnson

36. Alexander S. Panyushkin.
37. See telegram No. 763, April 13, 11 p.m., from the Ambassador in the Soviet Union, vol. iv, p. 944.
38. For President Roosevelt’s statement of November 30, 1940, see Department of State Bulletin, December 7, 1940, p. 521.
39. Chairman of Foreign Trade Commission, Chinese Ministry of Finance, 1938–41.