793.94/3579: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received January 20—7:45 a.m.]
96. Following is summary of two telegrams from Consul General, Nanking:
[Page 38]On 17th Peck and French Minister had interview with Chinese Minister for Foreign Affairs in the course of which Chen said that former policy of Chinese Government was passive or even pro-Japanese policy and that certain members of Chinese Government, including himself, had now determined on an active policy. If carried out such policy would result in invoking article 16 of League Covenant, requesting conference of Nine-Power signatories and rupture the diplomatic relations with Japan. He implied that a decision regarding all three measures was imminent and Peck inferred that these measures would be adopted and that Chen would resign unless diplomatic relations with Japan were severed.
Chen added that diplomatic questions would be decided by the emergency commission formed to act until the Standing Committee of the Political Council has been constituted.
On the following day Chen informed Peck that the Chinese Government had not yet definitely decided to take the three measures referred to above, as a rupture of diplomatic relations with Japan was strongly opposed by Chiang Kai-shek. Chen believed that Japan’s occupation of Manchuria is intended to be permanent and that if China continues passive policy Japan will find pretexts for occupying Tientsin-Peiping and possibly other areas. Referring to financial matters Chen said that the gold conversion plan was being worked out but had not yet been fully decided. He would be surprised if Soong resumed his former post as Minister of Finance as Soong wanted to be Minister to France in order to promote large foreign loan. Chen was quite willing that he should have this appointment.