The Ambassador in China (Gauss) to the Secretary of State
[Received January 7—6:22 a.m.]
19. TF–11. From Fox for the Secretary of the Treasury. Sir Otto Niemeyer and Hall-Patch10 called yesterday to discuss loan to China. Niemeyer seems to realize: (1) that political situation is bad and that economic and financial considerations are secondary; (2) that loan to China is desirable, the only question being the size of the loan.
Niemeyer does not believe any goods can get into China and that China’s request for a loan will be turned down. I think this would be an unfortunate mistake. I believe that it is more important as far as Great Britain is concerned to offer to supply goods such as cotton and cotton yarn from India and Burma and from India steel if it can be, et cetera, rather than large amount of money, and that there should soon be received for delivery to Generalissimo a message along the lines of your statement of December 16 (section 4 of 30411) but a little more specific if it is feasible at this stage. [Fox.]