Foreign Relations of the United States: Diplomatic Papers, 1942, China

840.50/912

Memorandum of Conversation, by the Counselor of Embassy in China (Vincent)¹³

[Chungking,] November 12, 1942.

Yesterday Secretary Philip Sprouse and I called on Dr. Wang Shih-chieh, Executive Secretary of the People’s Political Council, to discuss the recent meeting of the Council. Dr. Wang had told me sometime before the convening of the Council that he would be glad to inform me of the discussions that might take place in the Council meetings of post-war problems and I therefore directed the conversation along those lines. Some of Dr. Wang’s statements were in response to direct questions but for the most part he gave the information unsolicited.

With regard to post-war world organization, Dr. Wang referred to a recent address made by Dr. Wang Chung-hui, a leading Kuomintang official and former Chinese judge on the Hague International Court of Justice, before the Political Science Association. He said that the discussions in the Council with regard to post-war world political organization were along the lines of Dr. Wang Chung-hui’s address and were in substantial agreement with it. A press report of Dr. Wang’s address is attached hereto.

With regard to post-war economic problems, Dr. Wang Shih-chieh stated that the Council discussed reconstruction with particular reference to China and was in favor of some form of “post-war lend-lease” to countries such as China which had suffered from the devastations of war and did not have the capital reserves to finance necessary measures of reconstruction. (Such measures as generally understood here are in the fields of industry, transportation and agriculture. The Chinese Government desires to promote light industries for the production of consumers goods and to develop those industries directly related to national defense; that is, steel production and the production of defense armaments. Extension of rail, highway, and air communications is envisaged on a somewhat grandiose scale. With regard to measures in the field of agriculture much is said but little that has been done promises concrete action in regard to the pressing problem of agrarian reform (land tenure, taxation, and improvement). Any post-war lend-lease or other form of material aid to China that might be given should definitely be premised upon the actual undertaking of sound constructive measures by China rather than upon vague ambitions and paper planes [plans] and it would not be amiss to stipulate that reconstructive measures for which aid is sought be socially progressive as well as financially and economically sound.)

In response to my question Dr. Wang said that the Government’s financial and economic policies had been subject to much discussion particularly with reference to post-war prospects. He said that there had been severe criticism of foreign trade and exchange control, of the government’s monopoly policy, and of the tendency toward nationalization of industry. Government-controlled companies having the exclusive right to handle exports of certain commodities (tung oil, bristles, silk, tea, minerals, etc.) were criticized as inefficient. Although at present excused as a war-time measure, their continuation after the war was feared. Businessmen foresaw a serious curtailment of free commercial enterprise. They also foresaw, through the control of exports, a continuation of government control of foreign exchange into the post-war period and thus virtually a control of all foreign trade, import as well as export. National monopolies of such commodities as cigarettes, matches, sugar, salt, etc., were the subject of much adverse comment. In this connection Dr. Wang expressed the opinion that despite their unpopularity in some quarters, government monopolies of certain commodities might be expected to continue after the war. He hoped they would become more efficient as revenue producing agencies. Dr. Wang thought also that, despite the complaints registered in the Council meetings, the tendency toward the socialization or nationalization of certain types of industry would carry on after the war. Many of the Council members feared the consequences of government in business but Dr. Wang believed it necessary in an industrially backward country like China that the development of certain industries must be in the hands of the government; industries connected with national defense, for instance. He said that careful distinction should be made between the fields for public enterprise and those for private enterprise and felt that there would be ample room for private industrial enterprise in China alongside national industries.

I asked Dr. Wang whether there had been discussion of post-war relations with Japan. I had heard of differences of opinion with regard to the severity with which Japan should be treated after the war. He did not answer the question directly but said that the Council members expected the unconditional return of Manchuria to China and the liberation of Korea. He expressed his opinion that Japan must be given a thorough military defeat.

I asked him whether relations with Russia had been discussed. He said that there was unanimous agreement that no opportunity should be overlooked to improve friendly relations with Russia. I asked him how it was thought this could be done. He said that Russia was not suspected of territorial ambitions in the Far East. Manchuria was specifically mentioned. He said, however, that there were problems to be settled with regard to the border regions of Sinkiang and Mongolia. He said that these regions played an important part in relations between Russia and China and that it was important that satisfactory arrangements be reached in regard to them. With regard to the Chinese Communist Party, he said that the Soviet Government had already agreed to refrain from political or social propaganda in China. Without going into detail or being specific as to just what he expected, he expressed the opinion that the United States and England might be of considerable assistance in bringing about a better understanding between Russia and China. He said that the British had their Anglo-Soviet treaty¹⁴ and that American influence with Russia was strong. China would welcome a “pre-peace” agreement on fundamentals with Russia. He did not say why he felt that American and British aid was required to achieve this end.

The conversation turned to an account of the Council’s attitude and discussions with regard to purely domestic issues, a report of which Mr. Sprouse has prepared (despatch no. 736 of November 18, 1942¹⁵).

J[ohn] C[arter] V[incent]

[Annex]

Press Report on Address by Dr. Wang Chung-hw Before the Chinese Political Science Association

Chungking, Nov. 6 (Central): Addressing the Chinese Political Science Association’s third annual convention on “Post-War International Collective Security” this morning, Dr. Wang Chung-hui, Secretary-General of the Supreme National Defense Council, first traced the reasons for the failure of the past attempt: firstly, the incorporation of the League of Nations Covenant into the Versailles Treaty, secondly, the inherent defects of the League Covenant—it does not strictly outlaw wars; its decisions must be unanimously carried; aggression is not defined; and the enforcement of the League sanctions by League members is arbitrary—thirdly, the United States non-participation in the League and the failure of Germany and Russia to join the League right after the Versailles Conference, and fourthly, the world’s lack of faith in the collective security system. According to Dr. Wang, the fundamental cause of the failure lies in the fact that government and public leaders of various countries, particularly of the member countries, lack sincerity and faith in collective security.

Dealing with post-war international organization, Dr. Wang opined that it should at least be intermediary between the League of Nations and the united states of nations whose rights and duties should be considerably expanded and organization strengthened.

Regarding the scope of the post-war international peace machinery, Dr. Wang favors the creation of universal as well as regional systems with the latter constituting an integral part of the international organization.

Dr. Wang outlined five fundamental conditions for international security: firstly, peaceful settlement of all international disputes, secondly, strict forbiddance of use of force between nations, thirdly, a clear-cut definition of aggression, fourthly, the establishment of a permanent machinery for the execution of diplomatic, economic and military sanctions, and fifthly, periodic reconsideration of treaties which become inapplicable and consideration of international conditions whose continuance might endanger world peace.

To eliminate the causes of war, Dr. Wang said, efforts should be directed toward first, disarmament, second, economic cooperation and third, “moral disarmament” through psychological build-up for peace.

The Secretary-General also pointed out there is desirability in modifying the mandatory system in which mandates should be planed [placed?] under international control with the natives encouraged to take part in the administration since the motive behind mandates should be the promotion of democratic self-government. In case it is found impracticable to set up a world union or united states of nations after the war, Dr. Wang said, the League of Nations should be strengthened along the following lines: firstly, a peace treaty and an international security pact should be completely separated and should be drawn up at two separate conferences; secondly, there must be absolute racial equality; thirdly, the unanimity of votes system must be replaced by the majority rule system; fourthly, international employment of force must be outlawed; fifthly, all international disputes must be settled through pacific means; sixthly, aggression must be clearly and detailedly defined; seventhly, international police should be formed; eighthly, national armed forces should gradually be reduced and those countries violating the disarmament pact should be sanctioned; ninthly, “moral disarmament” should be promoted; tenthly, economic cooperation should be universal as well as regional; eleventhly, there must be clear stipulation when treaties should be reconsidered and when international conditions whose continuance might endanger world peace should be examined; twelfthly, international control of mandates; thirteenthly, under the collective security machinery there should at least be three regions: first, Europe and the Atlantic, second, the Western Hemisphere, and third, Orient and the Pacific; fourteenthly, after the war the International Labor Office should be reorganized into an international social welfare office, while the duties and rights of the international tribune should be expanded.

Concluding, Dr. Wang said that after the conclusion of the World War II, China, the United States, Britain and Russia should undertake the responsibility of upholding world peace until the world security system is established.

13. Copy transmitted to the Department by the Ambassador in China in his covering despatch No. 739, November 19; received December 14.
14. Signed at London, May 26, 1942, League of Nations Treaty Series, vol. cciv, p. 353.
15. Not printed.