840.50/640
Memorandum of Conversation, by the Counselor of Embassy in China (Vincent)5
Yesterday I called on Dr. Henry Chang, Director of the American Department of the Foreign Office, and later on Dr. T. F. Tsiang, Director of the Political Affairs Department of the Executive Yuan. [Page 734] Among other matters, we discussed steps that were being taken in Chungking to study post-war problems.
Dr. Chang indicated that he had been delegated by the Foreign Office to give special attention to the matter of post-war adjustments. He stated that he had made very little progress, due to the lack of material for pursuing his studies, to the lack of specific determination of the scope of the studies, and to the lack of coordination with other Departments of the Government also interested in such studies. He said he hoped to get organized for real work within a month or two. In the meantime he is undertaking to keep me informed of any interesting developments. He said it would be very helpful to him if he knew what was being done in Washington with regard to the study of post-war problems. He was particularly interested in matters pertaining to organization and scope of research.
Dr. Chang foresaw that internal reconstruction would be China’s principal post-war problem. China would need financial support for such reconstruction, and would look to America for that support. If allowed reasonable access to American markets, China would have no difficulty in paying interest and retiring principal on credits extended. There was little or no trade competition between China and the United States. China wanted to export to the United States metals (antimony, tungsten and tin), wood oil (tung oil), silk, tea and other typically non-competitive Chinese products. In return China wanted to import from the United States the materials to build up its industrial and transport system.
Dr. Chang emphasized his belief in the necessity of according all nations really free access to raw materials. He said this was especially important in the Far East. Underlining the word “free” he said that access must not only be free from special political preferences but that access must be made free to nations with small capital reserves through a liberal system of credits or raw materials pools. He said that post-war economic policy should be so designed as to leave no excuse for further employment of the term “have not” in reference nations.
With regard to political problems after the war, Dr. Chang foresaw Korean independence, disposition of Indochina, the future of Siam, and Malayan adjustments would furnish material for careful study. He made no specific suggestions as to policy but dealt at some length with the question of the Chinese residents in Malaya who he stated constituted over fifty per cent of the entire population and whose influence and interests, particularly in commercial fields, were relatively even greater.
Dr. T. F. Tsiang had some weeks ago informed me that, whereas he feared that there would be an inclination in some quarters for [Page 735] China to play power politics after the war, he hoped that wiser counsels would prevail and that full attention would be devoted to the all important question of internal reconstruction. He told me yesterday that a group had been meeting together in recent weeks discussing post-war problems. He said that he was not a member of the group but heard through friends of the course of the discussions. He suggested that I see Dr. Wang Chung-hui, former Minister for Foreign Affairs, who was a leading member of the group. He said that in so far as he was informed, the group had devoted its attention largely to two questions: the extent to which China should in the post-war period resort to socialization of economic life, and the kind and extent of assistance China would need after the war. With reference to the first question, the majority of the group seemed to be opposed to extensive socialization under the government, preferring regulatory and control measures which left the individual business men initiative and scope for commercial and industrial development. With regard to the second question, he said that the group had discussed the matter of aid from England and had decided that little could be expected from that quarter and that a paper had been prepared setting forth the aid that China would desire and require from the United States. In so far as he knew the group had had no special discussions of political questions.
I mentioned a recent editorial that had appeared in a Chungking (Chinese) newspaper in which the point was made that Siam had forfeited its right to independence and that China would have to assume a protectorate over the country after the war. Dr. Tsiang thought this was going a little far. He said that while the proportion of Chinese residents in Siam was not as great as in Malaya, it was considerable and influential, and feared by the Siamese. This fear has been the cause of Siam’s refusal to exchange diplomatic representatives with China.
- Copy transmitted to the Department by the Ambassador in China in his covering despatch No. 554, July 30; received September 1.↩