893.00/11656: Telegram
The Consul General at Nanking (Peck) to the Secretary of State
[Received December 8—10:55 a.m.]
119. On December 7, 4 p.m., I had a lengthy conversation with Soong, Minister of Finance, in which he expressed himself along the same lines as reported to the Department by the Legation about October 763 but with greater despondency. He stated that though [he thought?] crisis which had been threatening the National Government had arrived and he evinced the gravest doubt whether the Government could survive the strain. The National and Provincial Governments are destitute financially, a fact which is temporarily excused and explained by the diplomatic troubles of the Government, but which must lead up to outbreaks soon unless the Government’s position is speedily improved. Popular support of the Government is changing to widespread contempt because of refusal to declare war on Japan and only some indication of success in the policy of reliance on international adjudication can save the prestige and authority of the National Government from being seriously if not vitally impaired. He maintained the United States, while disclaiming all responsibility for the League, is nevertheless ranking factor in the League’s decisions and that if the United States were to indicate willingness to proceed to the length of economic sanctions against Japan the latter would immediately cease from lawless activities in Manchuria without necessity arising for actually imposing such sanctions. In regard to demand for war, Soong said that military concentration in the North would leave the South a prey to chaos and communism and is therefore impossible for this if for no other reason. He pointed out the obvious absence of any group which could establish a government if present Government should pass from the scene and predicted chaos in China for a period of years if that should transpire. He said that the League, in framing its resolution, is paying undue deference to Japan in lack of support from the United States for more positive policy and while he seemed to despair of any complete check to Japan’s military activities he urged that the United States take some affirmative action in support of China’s cause. This might take the form of an indication of willingness to support economic sanctions or the summoning of an international conference, like the Washington Conference. He was positive the League would not object to the latter course. He said that some open support of the National Government’s policy of reliance on international mediation given by the United [Page 648] States at this juncture might be the means of saving the National Government from possible downfall.