893.00/15053

The Ambassador in the United Kingdom (Winant) to the Secretary of State 84

No. 9973

Sir: I have the honor to enclose a copy of a memorandum furnished the Embassy by the Foreign Office, giving a summary of recent reports on the deterioration in the economic and political situation in China which have been received from the British Embassy in Chungking in answer to certain questions put by the Foreign Office.

In summary, it would appear that the British Embassy in Chungking believes that if Japanese attacks in China are not substantially increased, the maintenance of the present situation seems to depend more on the crop prospects than on anything else. It is not believed that there will be a Chinese attack on the Japanese, so that if it should suit the Japanese to remain quiet, an easy state of undeclared peace might develop. However, it is the opinion of the British Embassy in Chungking that as long as the United States Air Force operates in China, the Japanese will presumably have to react and complete quiet on the Chinese front would apparently be impossible. It is felt that if a serious food shortage should occur, it would probably lead to disturbances which might assume proportions leading to loss of control over wide areas by the Central Government.

It was stated by a high official of the Foreign Office to a member of my staff that the somewhat more optimistic view outlined in the present memorandum is apparently an effort on the part of the British Embassy in Chungking to present, in response to the Foreign Office’s request, all aspects of the situation rather than the purely negative one reported previously in this Embassy’s Cable No. 3791 of June 4, 1943, 11 a.m.85

Respectfully yours,

For the Ambassador:
W. J. Gallman
,
First Secretary of Embassy
[Enclosure]

The British Foreign Office to the American Embassy in the United Kingdom

Memorandum

As a result of recent reports indicating a deterioration in the situation in China, a number of questions were recently put to His [Page 71] Majesty’s Ambassador at Chungking. The questions and their respective answers are set out below.

(a)
Q. Is the conciliatory policy towards Wang Ching-wei announced by the Japanese having any appreciable effect on the situation in Free China?
A. So far as can be judged by His Majesty’s Embassy the new policy towards the Nanking Government is having little or no effect in Free China. It is suggested that the Japanese price control and system of food distribution are, at any rate in Shanghai and main centers in North China, more effective than the Chinese system. This is said to be producing some effect in occupied China. Cases of people returning from Free to occupied China have always been quite common and this sort of thing is not regarded in China in the same way as it would be in Europe. This tendency may increase.
(b)
Q. How much substance is there in the Japanese claims of defections to Nanking on the part of units of the Chungking forces?
A. There have certainly been cases of defection. In some cases, for instance in that of General Pang Ping Hsun, it is almost certain that defection took place only after his force was surrounded. There have no doubt been some cases when even this excuse could not be given, but these so far have been confined to persons of little importance. The Embassy think therefore that there is some substance in the Japanese claims although they are no doubt exaggerated.
(c)
Q. Is the greater measure of independence which the Japanese allege that Wang Ching-wei has been given likely to lead to any form of understanding between Chungking and Nanking?
A. In the view of His Majesty’s Embassy the answer is “no.” There has always been some contact between the two régimes and this is maintained but does not appear to grow closer.

The Embassy add that there has been improvement in the situation since the recent Japanese setback on the Yangtse front. Isolation of China from the outside world is, as was always expected, producing its inevitable effect. But on the whole the fall in morale is slower than might be expected and if the pressure on the Chinese is not substantially increased they can, the Embassy think, continue resistance on the present scale.

To sum up, provided the weight of the Japanese contacts is not substantially increased the maintenance of the present situation seems in the opinion of His Majesty’s Embassy to depend more on crop prospects than on anything else. A Chinese attack on the Japanese may be excluded, so that if it should suit the Japanese to remain quiet, an easy state of undeclared peace might result. Nevertheless, as long as the United States Air Force operates in China the Japanese will presumably have to react and complete quiet on the Chinese front would [Page 72] apparently be impossible. A serious food shortage if it occurs would probably lead to disturbances which might assume proportions leading to loss of control over wide areas by the Central Government. Present crop prospects are not bad but it is too early to judge.

  1. Copy transmitted to the Chargé in China in Department’s instruction No. 351, July 27.
  2. Not printed.