793.94/6995
The Minister in China (Johnson) to the Secretary of State
[Received June 1.]
Sir: I have the honor to refer to recent telegrams of the Legation with regard to public utterances of a tenor friendly to Japan made by General Chiang Kai-shek, Dr. Wang Ching-wei, and Mr. Sun Fo and to report that there has occurred a change in the attitude of Mr. T. V. Soong, Chairman of the National Economic Council, toward the Japanese.
During a conversation which I had with Mr. Soong on April 26 I learned that, although he has apparently not changed his attitude of hostility, fear, and suspicion of Japanese motives, he was no longer refusing to see Japanese and discuss matters with them. In fact, he stated that he had found among Japanese bankers and business men a much more sympathetic attitude than was formerly the case and that in recent months he had had many conversations with Japanese bankers who indicated a readiness on their part to cooperate with China.
According to a well-informed Japanese source, the change in Mr. Soong’s attitude became apparent last December. As a result of his interest being aroused through hearing indirectly the views of two leading Japanese residents with regard to China’s financial situation, Mr. Soong arranged to receive these Japanese, one of whom is a banker, and to discuss the question with them. Subsequently, in January, he received from the banker a memorandum of suggestions of measures which the National Government might take in order to cope with the financial situation. Among these suggestions were one that the National Government reorganize certain Chinese banks in order that it might have more effective control over them, another that the advice of the Foreign Bankers’ Association at Shanghai be obtained, and a third that cooperation with Japan be carried out. The first two suggestions have already been acted on, and the third is still a question.
[Page 160]The change in the attitude of Mr. Soong, who was formerly regarded as one of the outstanding opponents of Chinese conciliation of Japan, illustrates again the increasing unity of Chinese officials in the belief that, in the present critical situation and in the improbability of assistance from Western nations, “friendship” with Japan is practically inevitable.
Respectfully yours,