840.50/531: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received 4:17 p.m.]
902. Reference to the Department’s 656, July 21, 8 p.m. The Embassy has endeavored to follow opinion (editorial, unofficial and official) in China with regard to postwar problems. Editorial opinion has been concerned very largely with postwar reconstruction within China although attention has been devoted to such obvious political [Page 736] problems as independence of Korea and India, both of which the press favors. China is expected to recover all territory lost since the Sino-Japanese war of 1894 which includes Formosa and Manchuria. The postwar disposition of Indochina causes some concern and one paper has commented that Siam, having forfeited its right to independence by its relations with Japan, should be placed under a Chinese protectorate. However, [there is little?] evidence of jingoism, emphasis being placed upon the goal of freedom for Asiatic peoples insofar as practicable.
There are a number of unofficial organizations which are devoting some thought to postwar problems, notably the League of Nations Society and the People’s Foreign Relations Association. Little has been ascertained regarding their studies but they are understood to be unprecise and to follow generally the same lines as the press. Articles in the press are frequently inspired by members of these organizations or by the public utterances of officials.
Last year before the outbreak of the Pacific War, an official Chinese organization was established to study postwar problems and planning. The existence and work of the organization was then and is now given no publicity and the following information was obtained in strict confidence. Dr. Wang Chung-hui, then Foreign Minister and now Secretary General of the Supreme National Defense Council, is the head of an organization numbering about 40 members. Dr. Wang was formerly Minister of Justice and Chinese judge on the Permanent Court of International Justice. He explained that the studies of his organization are divided into three categories: (1) organization for international security; (2) economic adjustments, subdivided into (a) rehabilitation and reconstruction problems in China and (b) international commercial and economic relationships; and (3) China’s postwar relation with Japan and its Far Eastern political relations in general.
With regard to (1), China favors as it has in the past favored international organization for collaboration and security. Disarmament and an international police force are essential to security. So also is a willingness to submit disputes for arbitration without reservation to an impartial non-political tribunal. The treaties to end the war and organization for maintaining peace should be treated separately. The negative or preventative organization for settling disputes should be separated insofar as possible from the positive constructive organization for collaboration and improvement of conditions. The approach of the former should be strictly judicial whereas the latter would be political, economic and social. Dr. Wang spoke with approval of Mr. Welles’6 suggestion [of] a “cooling off” [Page 737] period but said that it should be made as short as possible to avoid confusion.
With regard to (2), Dr. Wang said that his organization advocated a “go slow” policy toward socialization of industrial life in China; that China looked to America for financial and technical aid to carry out its postwar reconstruction program; that China also looked to America as a market of its exports in order to permit refunding credits and that there was general agreement to follow the lead of Secretary Hull in interest of good neighbor policy in commercial relations (trade agreements, lowered tariff rates, abandonment of nationalistic trade policies, and impartial access to raw and essential materials).
With regard to (3), Dr. Wang indicated that studies were in an initial or formative stage. Neither postwar relation with Japan nor Russia were discussed specifically. He said that Korea should have independence; that status of Indochina would depend on position of France at the end of war; and that Thailand should regain independence. He mentioned the large Chinese population of Malaya and preeminent part it played in commercial life but offered no suggestion with regard to postwar plans for that area. He observed that neither the population of Indochina nor that of Netherlands [East] Indies was prepared for self-government. This observation led to a discussion of mandates. Dr. Wang earnestly favored a mandate system with the mandate authority absolutely international and directly under a postwar international organization. He stated that administration should be for the threefold purpose of training the inhabitants to assume the responsibilities of self-government, of developing the economic resources of the mandate area for the benefit of the inhabitants and of maintaining access to the raw materials and materials of these areas on a basis of equality of opportunity.
Please treat the source and substance of the foregoing as confidential.
Mail despatch follows.7