893.51/6931
Memorandum of Conversation, by the Chief of the Division of Controls (Green)
In the course of a conversation on another subject which Mr. Hornbeck and I had with the Chinese Ambassador in Mr. Hornbeck’s office today, the Ambassador spoke of the Secretary’s recent letter to the Chairmen of the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs35 in regard to neutrality legislation, [Page 670] a subject to which he had referred at the beginning of our conversation. He mentioned particularly the proposed provisions of neutrality legislation relating to loans and credits, saying that he had experienced and would experience great difficulty in explaining to his Government and to his compatriots the attitude of the American Government and American people toward loans and credits to belligerents. He pointed out that the recent $25,000,000 credit granted by the Export-Import Bank contained restrictions as to the use to which that credit could be put. He said that his Government had rigorously refrained from using any of that credit for the purchase of arms, ammunition, or implements of war. However, as the Chinese civil reserve was now almost depleted, his Government felt an urgent necessity for a further credit or for a loan which could be used for the purchase of arms, particularly airplanes. He said that he hoped that means could be found to enable his Government to obtain such a credit or such a loan in this country but that he had brought the matter up today merely in order that we might give the question consideration and that he did not expect any immediate reply.
- Dated May 27, Department of State, Peace and War: United States Foreign Policy, 1931–1941, Document No. 130, p. 461.↩