493.11/1661: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received December 29—12:27 a.m.]
1395. Your December 15, 6 p.m. I have carefully reviewed instruction 853. I understand procedure contemplated by the Department [Page 627] to consist of a formal note couched in serious terms demanding immediate and constructive action by the Chinese Government with a view to the determination and adjustment of China’s obligations to American citizens either through the establishment of a commission such as that contemplated by the Department’s instruction number 64383 or through the Chinese Commission for Adjustment of Domestic and Foreign Obligations.
I consider procedures eminently practicable. I prefer establishment of Sino-American commission for the reason that Chinese Government appears to be hesitant about whole question of debts due to fear of political character of Japanese claims and there is a possibility that Chinese would be more willing to consider American claims separately from other claims.
As to the time for presenting this matter following facts would seem to indicate present as an auspicious moment: (a) T. V. Soong’s statement regarding condition of finances of National Government; (b) temporary lull in proceedings at Geneva; (c) present desire of Government leaders to hold friendship of the United States; (d) desire of National leaders to counteract Japanese allegation that China has no organized government; (e) air of optimism arising out of successful termination of recent plenary session. On the other hand atmosphere at Nanking where leaders are harassed by confusion of counsel over domestic and foreign difficulties has not been conducive to calm consideration of a question of this kind. Rapid changes in Foreign Office at the end of 1931 made presentation of Department’s draft difficult. Disorganization produced by Shanghai incident which occupied everyone’s attention from January to May was a further deterrent. Preoccupation of Government with investigations by League Commission during this summer and preparation for consideration of the League Commission report during the fall have created atmosphere not conducive to serious consideration which this question demands. I do not know when conditions are going to be better and therefore believe that present will be as good as any other time.
In communicating proposed action to British, Department should take into consideration fact that our proposal is already before the Chinese Government and the possibility that Chinese might be more willing to reach settlement separately with us than with several jointly or simultaneously.
I shall have a note drafted and hold the same pending further instructions from the Department.
- December 10, 1931, Foreign Relations, 1931, vol. iii, p. 1042.↩