851G.77/32
The Ambassador in China (Johnson) to the Secretary of State
[Received February 5.]
Sir: I have the honor to enclose a memorandum dated January 2, 1940,5 of my interview with General Chiang Kai-shek6 on that day.
Summary of memorandum:
Referring to recent attempts of the Japanese to bomb the Indochina–Yunnan Railway, General Chiang stated that measures would be taken to protect the line. It was indirectly learned that antiaircraft guns were being installed. General Chiang thought that peace with Japan through negotiation was impossible. He thought that the transfer of the Japanese main offensive to south China would work to the advantage of China. He believed that part of their aim quite possibly was to threaten British and French possessions. He said that he could perceive no change in the attitude of friendliness and cooperation with China shown by the Soviet Government. General Chiang inquired whether, in Mr. Peck’s personal opinion, Great Britain and France were receding from the position hitherto taken by them. Mr. Peck said that since those two nations were involved in serious war, it seemed to him impossible for anyone to predict in just what manner their Governments would feel themselves forced to meet various possible eventualities in the Far East. General Chiang thought the announcement of an American loan to China within the next ten days would cause the Japanese to abandon their plan to set up a puppet central government and to bring the military offensive to an end.7
Respectfully yours,
Counselor of Embassy