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

893.24/1047: Telegram

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

Washington, April 28, 1941—8 p.m.

93. Reference your 140, April 17, 11 a.m. (that portion relating to economic aid). The Department requests that you call on General Chiang and, referring to the Generalissimo’s comments in regard to the proposed terms of the 50 million dollar stabilization loan to China, state that this Government has endeavored fully to meet the wishes of the Chinese Government in regard to this matter and that testimony to that effect is found in the terms of the final agreement signed by Dr. Soong and the Secretary of the Treasury on April 25⁴⁹ (see Radio Bulletin No. 98, April 25). You may add that it is a matter of regret that there should have arisen any misunderstanding in regard to the meaning of a stipulation appearing in earlier drafts of the agreement, to which the Generalissimo took exception; that a similar stipulation is found in a comparable agreement with Argentina,⁵⁰ the only other agreement of this type which has been entered into by the United States with a foreign country; that from our point of view the question of confidence in China did not at any time arise; but that the question having arisen in the Generalissimo’s mind we have sought to allay it in the most effective way possible, namely, by omitting the stipulation from the agreement as signed. In conclusion you may convey appropriate assurances of our continued high regard for and confidence in the Chinese Government.

Sent to Chungking only.

Hull

49. See press release issued by the Treasury Department on April 25, p. 633.
50. For correspondence concerning this agreement, signed December 27, 1940, see Foreign Relations, 1940, vol. v, section entitled “Negotiations Respecting Financial Assistance by the United States to Argentina.”