740.0011 Pacific War/2070

Memorandum of Conversation, by Mr. Joseph W. Ballantine 21

On January 20 Mr. Currie, following a conference which he had with the Secretary, called upon Mr. Hornbeck.22 Mr. Hamilton23 and Mr. Ballantine were present. Mr. Currie said that he had information indicating that the Japanese have massed troops and about 450 planes on the Thailand-Burma border. He referred to an estimate which we had a few days ago of British origin under the heading “A Threat to Burma”, in which it was pointed out that there are a number of highly compelling reasons why an attack by Japan in force upon Burma is to be expected. He referred to a report from General Magruder24 that the British were apparently reluctant to accept a Chinese offer to dispatch three Army corps to Burma to help defend that territory against a possible Japanese attack, although they had agreed to receive three Chinese regiments. He said that he had raised with the Secretary the question of the desirability of inducing the British to accept the Chinese offer and that the Secretary had asked him to confer with Mr. Hornbeck. At the conference in Mr. Hornbeck’s room all present concurred in the belief that the situation in Burma was critical and that it was even possible that it might be too late to do anything.

Mr. Currie also said that he has been informed by T. V. Soong25 that Soong has received a message from his Government indicating that his Government does not like the plan which was proposed to it, by the Secretary of the Treasury,26 through T. V. Soong. Mr. Hornbeck asked whether T. V. Soong has informed the Secretary of the Treasury of that fact. Mr. Currie replied that he had not yet done so.27

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After Mr. Currie left Mr. Hornbeck asked to see the Secretary.

In pursuance of Mr. Hornbeck’s request the Secretary arranged to see Messrs. Hornbeck, Hamilton and Ballantine this morning. The Secretary mentioned his concern over the possibility after today of German and Japanese attacks upon the countries of South America and he said that he had decided to communicate to the War and Navy authorities his views in regard thereto. The Secretary then took up the subject of Mr. Currie’s call on the previous day. He said he had tried to get in touch with the President yesterday afternoon in regard to the matter, but that he had been unable to reach the President. The Secretary asked why it was that the British had not accepted the Chinese offer to send three Chinese Army corps to Burma. Mr. Hornbeck said that this point had been discussed with Mr. Currie and that we had all felt that it was due to British reluctance to accept assistance from Orientals as derogatory to British prestige in Asia. In the course of discussion of this subject reference was made to the precarious position of the thirty or so ships at Rangoon laden with military equipment whose unloading had been held up by inability to get stevedores at Rangoon to unload them and to the large quantities of Lease-Lend materials at Rangoon awaiting shipment to China. There was also discussed a radio report this morning of a rapid falling back toward Singapore of the British lines in Malaya and the probability that the mainland would soon be evacuated by the British forces.

Mention was made also of the report received by Mr. Currie from Mr. T. V. Soong that the Chinese Government had reacted unfavorably to an offer of a loan communicated by the Secretary of the Treasury to Mr. Soong on the ground that this offer appeared to treat Chinese troops as mercenaries.

Mr. Hornbeck gave the Secretary a copy of a digest of an article by Mr. Paul Wohl which appeared in the Baltimore Sun of January 18 entitled “Hub of British Empire”, and called to the Secretary’s attention a memorandum28 prepared in the Far Eastern Division yesterday on Singapore.

During the course of the conference the Secretary telephoned the President and communicated to the President (1) his concern over the possibility of German and Japanese attacks upon the countries of South America; (2) the critical situation in Burma as outlined above and the reported refusal of the British to accept Chinese military aid; (3) the reported falling back of the British in Malaya upon Singapore and (4) the report we had received of adverse Chinese reaction to the offer communicated by the Secretary of the Treasury to Mr. T. V. Soong. The President replied stating that he also felt concern over the situation in Burma, that the report had also reached him of the [Page 8] falling back of the British upon Singapore, and that he was conferring at noon today with the authorities of the War and Navy Departments.

The Secretary indicated to Messrs. Hornbeck, Hamilton and Ballantine that he expected to confer later on today with officials of the Army and Navy to inform them of his views in regard to the possibility of German and Japanese attacks upon the countries of South America and that he would on this occasion also take up with them the situation in Burma and Malaya.

  1. Foreign Service officer detailed to the Department on special consultation.
  2. Stanley K. Hornbeck, Adviser on Political Relations.
  3. Maxwell M. Hamilton, Chief of the Division of Far Eastern Affairs.
  4. Brig. Gen. John A. Magruder, Chief of American Military Mission to China.
  5. Chinese Minister for Foreign Affairs.
  6. Henry Morgenthau, Jr.
  7. For further correspondence on the United States loan to China, see pp. 419 ff.
  8. Not printed.