File No. 893.811/243

Ambassador Guthrie to the Secretary of State

[Telegram]

Chinese Minister yesterday volunteered statement that China was cordially in favor of the President’s moves towards peace and would be willing to join peace league after the war, that China trusted the United States absolutely and desired fullest present and future cooperation [Page 209] between the two Republics. He said that China earnestly desired that the United States should not rejoin the financial group and in this connection asked me whether I knew what the policy of the International Corporation would be toward it. In answer to my inquiry he said that joint participation in loans by Japanese and American financiers might be favorably considered because in that way China could have more assurance that political advantages would not be sought through them. He said that he had reason to believe that Terauchi sincerely intends a consistent policy of friendliness rather than forcefulness and seeks friendly economic relations rather than political advantages.

Guthrie