Foreign Relations of the United States Diplomatic Papers, 1941, The Far East, Volume V

893.24/1051: Telegram

The Ambassador in China (Johnson) to the Secretary of State

Chungking, May 1, 1941—10 a.m.
[Received May 1—9:40 a.m.]

157. 1. I called on General Chiang yesterday afternoon and communicated to him the substance of the Department’s 91, April 26, 11 a.m.; and 93, April 28, 8 p.m. He replied that he was very grateful to the American Government and people and asked that I convey his deep appreciation to the President, the Secretary of State and the Secretary of the Treasury. With regard to the stabilization loan proposals previously advanced by the American Government, he said that they could not be regarded as unusual in ordinary times but that these were “extraordinary times.” He went on to say that the United States is China’s best friend and that he therefore felt it was best to be frank when misunderstanding arose. He expressed appreciation of the statements which he said Mr. Morgenthau had made to the Chinese Ambassador and Mr. Soong and of speed with which the Secretary of the Treasury had signed the stabilization agreement. He concluded this phase of the conversation by saying that the Chinese people and army are gratified at this manifestation of American aid and confidence and that they will strive to the utmost to carry out the heavy tasks before them.

2. Referring to press reports of calls by the British Ambassador⁵⁵ on the Japanese Vice Minister for Foreign Affairs, General Chiang said that there are rumors to the effect that Japan had offered to refrain from attacking British possessions in the Far East in return for an engagement on the part of Great Britain to close the Burma Road and recognize Indochina and Thailand as within the Japanese sphere of influence. He said that he did not believe these rumors but it was apparent that they had perturbed him (this is merely another manifestation of the distrust in which Great Britain is held in most Chinese circles). I replied that I had no information on recent Craigie–Ohashi conversations, adding that I thought it was extremely unlikely that Great Britain would undertake to close the Burma Road under present conditions.⁵⁶

Johnson

55. Sir Robert L. Craigie.
56. In telegram No. 105, May 12, 5 p.m., the Department informed the Ambassador that, as reported by the Ambassador in Japan, the British Embassy at Tokyo had characterized the rumors mentioned by Generalissimo Chiang as “entirely without basis in fact.”