893.24/5–1149
Memorandum of Conversation, by the Secretary of State
The Chinese Ambassador95 called to see me at his request. He said that in the first place he wished to call attention to the fact that the peace negotiations about which he had commented on his previous visit had broken down and that his Government had decided to resist the Chinese Communist onslaught. It was painful to see him try to make the case that the Chinese Nationalist armies were effectively resisting and that therefore the United States should now take some additional action in support of the Nationalist Government, he being as aware as I that in the past three weeks the Chinese Communist armies have crossed unimpeded the Yangtze River and established a 400–mile beachhead along its bank penetrating at some places as deep as 200 miles and enveloping Shanghai. He did ask for some general statement which would have the effect of improving the morale of the troops and the people within Nationalist areas, though he did so in a pro forma way as if only because he felt bound by his instructions. I said I would be glad to consider the matter. He went on to inquire about silver and was informed that the Department had today authorized the Treasury Department to proceed with the arrangements to mint silver coins for the Chinese Government with silver supplied by the latter and at cost. In response to his queries he was also informed of this Government’s decision that it could not lend the Chinese Government silver for this purpose nor could the ECA use the funds, as he suggested, derived from the sale of cotton diverted from Shanghai, which amount he set at $16 million, to purchase silver in Mexico or India.
Dr. Koo also suggested that it would be helpful if I would find occasion to mention that the ERP,96 the Atlantic Pact and the meeting of the Council of Foreign Ministers did not indicate diminution of interest in Asian affairs on the part of the United States. I thanked him for this suggestion and pointed out that the President had made a reference of this kind and that on at least three occasions I had done likewise, but that I agreed that every effort should be made to keep this attitude, which in fact was the attitude of the U.S. Government, to the forefront of people’s minds.
Dr. Koo inquired as to Ambassador Stuart’s plans and suggested the desirability of his proceeding to Canton before returning to the U.S. His attention was drawn to the press announcement about Dr. Stuart’s return for consultation which pointed out that he was only to depart after he had satisfied himself as to the safety of American citizens in [Page 305] the lower Yangtze Valley and that this phrase was designed to convey the thought that he would not be returning until the situation in Shanghai had resolved itself. In this general connection, I made mention of the fact that Mr. Lewis Clark our Minister was in Canton and in contact with Dr. Koo’s Government.
The Chinese Ambassador then referred to the assurances which General Marshall97 had given him prior to the General’s departure for the London meeting last year to the effect that China would not be discussed at that meeting and inquired whether Far Eastern affairs were on the agenda for the meeting of the Council of Foreign Ministers in Paris. I told him that they were not and that the suggestion was new to me that China might be on the agenda. The Chinese Ambassador asked if the questions directly affecting China came up whether China would be notified and consulted and I replied that I felt it proper and right that it should. The Chinese Ambassador expressed appreciation and satisfaction and took his leave after telling me that Dr. Hu Shih98 had arrived in this country and wanted me to know that he had come on a private visit and not with any official character. I said that Dr. Hu Shih was an old friend and I looked forward to seeing him.