793.94/6846: Telegram
The Counselor of Legation in China (Peck) to the Secretary of State
[Received January 30—9:30 a.m.]
19. 1. On January 29, 4 p.m. Suma, Nanking representative of the Japanese Legation, volunteered to me comments on the present state of Japanese-Chinese relations. Suma said the Japanese Government [Page 30] feels aggrieved because (1) in many localities in China there are still planned anti-Japanese activities; (2) the Chinese Government discriminated against Japan, as for example, in failing to number Japanese among its foreign advisers and (3) because in spite of fair words the Chinese Government fails to take concrete steps to restore intimate relations with Japan.
2. Despite these discouraging features Suma professed belief that the most powerful persons in the Chinese Government have come to view the existence of “Manchukuo” as a fact which cannot be denied or altered and are ready to take cautious steps toward clearing up outstanding questions. He was unable or unwilling to say what those steps would be. Suma denied that the Japanese Government intended to change its policy or exert additional pressure.
3. Suma showed great interest in reports that negotiations are progressing between the Hong Kong and Shanghai Bank, the Chartered Bank and the Chinese Government for a loan of 200,000,000 sterling to be used in currency and market stabilization and inquired whether negotiations have been initiated with any American interests to which I replied I did not know. He said that Japan had no large sum available for such a loan but he urged that it would rightfully come within scope of the consortium agreement.32 Repeated to the Legation.
- China Consortium Agreement, October 15, 1920, Foreign Relations, 1920, vol. i, p. 576.↩