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Memorandum of Conversation, by the Secretary of State
The Ambassador of China, accompanied by Dr. T. V. Soong, called at his request. I inquired about the situation in Asia, and the Ambassador replied that the Chinese were holding up well thus far. He stated that they urgently needed airplanes and money. The Ambassador then turned the matter over to Dr. Soong, who gave a detailed statement of the situation.
Dr. Soong proceeded to point out the disadvantage of his country continuing without fighting planes in the face of an entirely overwhelming air control by the Japanese. He said that it was discouraging to his people and to the soldiers; that it was not intended to enter upon a one or two years’ aircraft program of development, but that having 400 well-trained pilots and not over 400 planes of every description, with 400 other pilots who could be trained further and well, it was all-important to have at least a reasonable number of fighting planes for these pilots to resist Japanese attacks. Dr. Soong added that Russia had sold them some planes, but that they were wholly inadequate and that China can only look to the United States at present, England being entirely preoccupied with her own necessities.
Dr. Soong then said that they needed two or three hundred million dollars for the purpose of monetary rehabilitation as a nucleus on which to base contracts for airplanes and other weapons, including anti-aircraft guns.
He said that Japan was withdrawing her troops from many areas and stationing them in central cities with a view to entering on a campaign in the South Sea countries. He seemed to feel no doubt about this purpose and plan on the part of the Japanese and gave this as a reason for Japanese troop movements and readjustments in China.
He asked that we urge Great Britain to enter some sort of special arrangements with China for the general purposes which are well known. I made no commitment on this phase.
I expressed sympathetic interest regarding the airplane situation and also regarding the question of a further monetary loan. I said that, of course, this country does not engage in any kind of alliances in wartime [peacetime?], much less to make commitments to send its Army and Navy into military activities abroad.