741.62/64: Telegram
The Ambassador in the United Kingdom (Bingham) to the Secretary of State
[Received March 28—2:45 p.m.]
148. At Sir Warren Fisher’s83 request Atherton84 called this morning. Fisher said in the recent Berlin talks England had offered Germany a place in the European collective system but that Germany appeared to have chosen the other alternative and Europe now faced the prospect of dividing into rival armed camps. Fisher said England was living in the past in the mistaken belief that she was detached from the Continent but that she could not be allowed to continue in this frame of mind. In the given circumstances she had to increase armaments. The Prussian spirit which pervaded Germany today might force Europe into a war, he thought, within 10 years. The French believed perhaps rightly within a far shorter period. The German Government with a docile but virile people, would fight for expansion. The Hitler regime had taught modern Germany that she had not been defeated by superior numbers in the last war but by lack of material, and to rectify this all the energies of the Hitler regime had been dedicated. Germany was perhaps 70 percent prepared today, according to his information, which he added, the average Englishman did not begin to realize. But they would have to realize the danger and steps would be taken to make them realize it. Fisher then stated Germany had more than once in recent months made overtures to Japan. The British Government had been informed of these overtures by the Japanese Government, which had turned them down. Fisher went on to say that this led him to the Far Eastern question [Page 96] which was the real purpose of the visit. He referred to a previous conversation of March 7th outlined in Atherton’s letter of March 885 to Admiral Standley,86 a copy of which was forwarded to Moffat,87 and China’s request of Great Britain last year for a stabilization loan, to which they had merely replied that they would consider the matter. This permitted the representations made by the various British missions (see Department’s 45, March 5, 8 p.m.88[)] which resulted in the fact that today the Governments of Japan, United States, Great Britain and possibly France, were all to consult with regard to economic assistance to China. Fisher discussed this question with Matsudaira,89 who had informed him that the Japanese Government were opposed to the creation of any international economic commission, but favored negotiations conducted through diplomatic channels. Fisher told Matsudaira that this was quite in line with the policy the British Government had framed and stated they contemplated sending a central bank economic technician to be attached to the Legation in Peiping. It was the British hope that the American, Japanese and possibly French Governments would do likewise. That these technicians attached to their respective missions could, in consultation with the Central Bank of China and one another, investigate and diagnose the Chinese economic and monetary ailments, and advise their respective Ministers. But all political questions that arose in the course of discussions would fall directly into the hands of the Ministers themselves and would lie outside the province of the technical advisers. Fisher added, in the strictest confidence, that many names had been suggested for the British representative, including … Fisher then expressed regret that Simon90 had asked the Chinese to state their case (see second paragraph, my 94, March 6th91) and said that the present proposed action was intended to forestall the Chinese offering a plan; they had already discussed at various times linking their currency with the dollar, the pound, or the yen, and in general attempting to play off one power against another. The evident undercurrent of Fisher’s thought, which he admitted to Atherton, was the fact that under present circumstances the only way to reduce the tension in the Far East was by direct negotiations between China and Japan; that the contribution of Western Powers was a suitable forum to effect a successful outcome of these negotiations. In this connection, the views [Page 97] he expressed reminded Atherton of those expressed by Wellesley92 (see enclosure despatch 1260 of March 5th93). He pointed out that Great Britain and the United States were both interested in maintaining their trade with China, which should increase from its present low ebb. He added he had already announced this to Matsudaira as part of England’s policy, and he had also frankly deplored to Matsudaira Japan’s present action in regard to Manchukuo oil.94 Fisher stated that their instruction to Minister Cadogan in Peiping to inform the Chinese Government of the British policy in attaching a technical expert to the Legation would not go forward until Saturday, the 30th. He added that if the American Government desired to raise any question in this connection he would be very glad to discuss the subject again. It was the British Government’s intention that the American Government should be thus apprised in advance of its policy and intentions, and he added expressly that America’s domestic silver policy was in no way concerned. Fisher laid emphasis on the fact that economic recovery in any part of the world would ease tension decidedly, and that the present difficult world situation necessitated careful and conciliatory handling. In this connection he gave Atherton to understand this consideration was influencing England’s Soviet policy. Simon’s statement in the House of Commons today, cabled textually by American press, added little information and confirmed many observers in their opinion that decisions of policy must await Eden’s95 return to London.
- Permanent Secretary of British Treasury, considered for mission to China.↩
- Ray Atherton, Counselor of Embassy in Great Britain.↩
- Not found in Department files.↩
- Admiral William H. Standley, Chief of Naval Operations.↩
- J. Pierrepont Moffat, Chief of the Division of Western European Affairs.↩
- Not printed; this telegram reported a visit from the Japanese Ambassador on March 4 (893.515/430). For oral statement handed to the Ambassador on that day, see p. 556.↩
- Tsuneo Matsudaira, Japanese Ambassador in the United Kingdom.↩
- Sir John Simon, British Secretary of State for Foreign Affairs.↩
- Post, p. 557.↩
- Sir Victor A. A. H. Wellesley, British Deputy Under-Secretary of State for Foreign Affairs.↩
- Post, p. 556; enclosure not printed.↩
- See pp. 877 ff.↩
- Anthony Eden, British Lord Privy Seal.↩