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Memorandum by the Adviser on Political Relations (Hornbeck)53

The attached copy of a message dated November 22 from the United States Treasury representative at Hongkong54 contains statements [Page 708] based upon an interview with the former Chinese Vice Minister for Foreign Affairs in effect as follows:

1.
There are “pro-Axis” and “peace” groups in the Chinese Government which consider that in the “negotiations” between the United States and Japan, the United States will yield to Japan to a large extent, and which see in these “negotiations” opportunities to consolidate their own position for their special interests in China. The “pro-Axis” group tries to arrange peace with Japan through Germany; the “peace group” tries to bring about peace by direct bargaining with Japan.
2.
There is an anti-Axis group which hopes that the United States will itself bring about a peace involving the withdrawal of Japanese troops from North China.
3.
The third principal body of opinion in China is in favor of continued active resistance and believes that a maximum possibility of peace is less than 50 percent, that the United States will not let China “get worst of bargain.”

S[tanley] K. H[ornbeck]
  1. Noted by the Secretary of State.
  2. Not printed; it was transmitted to the Secretary of State by the Secretary of the Treasury (Morgenthau) in his letter of November 26, not printed.