893.01B11 Manchuria/3
Memorandum by the Chief of the Division of Far Eastern Affairs (Hornbeck) of a Conversation With Mr. George Bronson Rea33
Mr. Rea said that he had arrived very recently and he felt that his first call should be on Mr. Hornbeck.
Mr. Rea said that he wished to explain his position. He said that he was not an official of or an adviser to the “Manchukuo” government; that he was a “counselor”; that he had felt that if he became an adviser it might jeopardize his position as an American citizen, in regard especially to his extraterritorial rights, but that if he became a “counselor” there could be no ground for objection or question of legality. He said that he had given a copy of his contract to the American Consul General at Harbin for forwarding to the Department.
Mr. Rea made a statement with regard to the present position, attitude and program of the “Manchukuo” government. At most pomes in the conversation he referred to that government as “we”. He said [Page 409] that they were not now seeking recognition and were not seeking a loan or any other assistance from abroad; what they wanted was to be “let alone” and given an unobstructed opportunity to demonstrate what they can do. He painted a rosy picture of the economic developments which might take place. He talked of building fifty to seventy thousand miles of roadways within the next five years (later he said ten years) and of large-scale purchase of machinery which he said could be obtained only from the United States (as being manufactured here only).
Mr. Rea said that Manchukuoans and not the Japanese were governing in Manchuria. He said that he had talked with most of the leaders of the Japanese Government, in Tokyo, and he was assured by them that they had no desire to annex Manchuria; that they felt it was much more practical from point of view of their interests to have an independent state there. In final analysis, he said, Japan’s problem is Russia. They are building up the independent state of “Manchukuo” as a buffer. They expect, sooner or later, to have to fight it out with Russia. He said that they would have their troubles with the Manchukuoans; the Manchukuoans will be irked by the presence and restraint of Japanese advisers and will insist more and more on independence in fact. That situation will have to be met as it arises.
Mr. Rea then referred to the dispute over the Chinese Eastern Railway and gave a somewhat extended account of the current negotiations. He said that he felt that 50,000,000 yen was a fair price and that he had advised the “Manchukuo” government to stand pat on that figure or at least not to raise the bid above 65,000,000 yen.
Mr. Hornbeck inquired what had been the largest figure for any one year’s American imports into Manchuria. Mr. Rea replied that he thought it had been about $8,000,000. There followed some discussion of the potentialities in regard to the increase of the foreign commerce of China as a whole and of Manchuria as a part.
Mr. Hornbeck inquired whether Mr. Rea could throw any light on the Russian protest of last week to Japan in relation to the Chinese Eastern Railway. Mr. Rea talked at some length but without throwing much light. He said that the “Manchukuo” authorities are confronted with a problem in the presence of some thirty thousand Russians who are communists in the employ of the C. E. Railway. He said that these people were making trouble all the time. Mr. Hornbeck inquired what kind of trouble. Mr. Rea replied that he did not know the details but he thought it related mostly to propaganda and perhaps some supplying of arms to Chinese bandits.
Mr. Rea then reverted to the question of his own position. He said he did not wish to do anything which would embarrass anybody or make any trouble; that he was here to try to explain “Manchukuo”; [Page 410] that he was going to take a residence here and be here for at least a year; that he would like to know whether there would be any objection to his using, as he had done at Geneva, a brass doorplate bearing the legend “Manchukuo mission”. Mr. Hornbeck replied: “You and I have been acquainted for a long time and have spoken to one another frankly about many matters; I should say frankly that such a plate would be a ‘brass plate’ with the emphasis on the ‘brass’.” Mr. Rea replied that he appreciated having this frank expression of opinion. He continued to the effect that he did not wish to do anything which would be objectionable. Mr. Hornbeck then said that there had been in the press some weeks ago a story to the effect that Mr. Rea had said that he was coming over here to be an “unofficial ambassador” of “Manchukuo”; that that was an unfortunate kind of a story; that now that Mr. Rea had explained that his position was merely that of “counselor”, Mr. Hornbeck would suggest that Mr. Rea carefully refrain from making any statements or engaging in any action which might imply or which might cause anyone to infer that he was thinking of functioning as an official representative, in any capacity, of “Manchukuo”. Mr. Rea said that he appreciated having that suggestion, as he did not want to do anything “objectionable.”
Mr. Rea then took from an envelope and handed to me a document which he said was a copy of his contract with the “Manchukuo” government. While I read it, he said that he would like to give it to the Department. I made mental note of its contents and, remarking that in view of his statement that he had given Hanson34 a copy for transmission to the Department I did not think that we need have this copy, I handed the document back to him.
(See Note on next page.35)
(Note: The important items in the document which Mr. Rea handed me as being a copy of his contract with the “Manchukuo” government were to the effect that he was to be a “counselor” of the “Manchukuo” government; he was to receive an annual “retainer” of 60,000 “Manchukuo” dollars; after his return from the United States he was to receive in addition 20,000 “Manchukuo” dollars annually for maintenance of an office; and, while on his trip to the United States, all his necessary expenses were to be paid.)