893.01/1–349

Memorandum of Conversation, by the Chief of the Division of Chinese Affairs (Sprouse)

Subject: Question of Recognition in the Event of the Establishment of a Successor or Coalition Government in China

Participants: Mr. Graves, Counselor, British Embassy
Mr. Butterworth, Director for Far Eastern Affairs
Mr. Sprouse, CA

In order to obtain clarification of the British Foreign Office message to the British Embassy regarding the above-mentioned subject, [Page 6] the substance of which was handed to the Department by Mr. Ford of the British Embassy on January 3 (copy attached),12 Mr. Sprouse asked Mr. Graves to call today.

Mr. Graves confirmed that the British Government did not view as automatic recognition of any government that might be established as successor to the present Chinese Government, whether formed in accordance with the Chinese constitution by elements of the Government following a resignation of the Generalissimo13 or by a coalition including the Chinese Communists. Mr. Graves also indicated that the British Government, before extending recognition, expected to study carefully the character of any successor government in China, having particular regard to the extent of its control and the manner in which it would deal with British interests and trade.

Mr. Butterworth stated that this Government held similar views on this question and that the question of recognition was one which provided bargaining power vis-à-vis the Chinese Communists. Mr. Graves indicated that the British Government was of the same mind on this point and continued that the economic deficiencies of China gave further bargaining power to the western powers and that he would wish to discuss this and related problems early next week in connection with the British Embassy’s memorandum left by the British Ambassador with the Acting Secretary on January 5.14

  1. Printed on p. 2.
  2. President Chiang Kai-shek.
  3. Supra.