Foreign Relations of the United States Diplomatic Papers, 1935, The Far East, Volume III

793.94/6850: Telegram

The Counselor of Legation in China (Peck) to the Secretary of State

Nanking, January 31, 1935—2 p.m.
[Received 3 p.m.]

20. My 19, January 30, 1 [3] p.m.

1. During courtesy call on the Japanese Minister January 30, 7 p.m., I alluded to the current newspaper reports that negotiations are progressing between the Japanese and Chinese authorities. I hoped to elicit some information. Although the Minister gave me no details he remarked with evident satisfaction that relations between the two countries are much more favorable than they were.

2. Captain McHugh of the Fourth Marine Regiment in Shanghai, who is well acquainted with Madame Chiang Kai-shek, paid a social call on her on January 31, 11 a.m. McHugh mentioned the newspaper reports concerning current negotiations and she stated that the Japanese authorities are pressing the Chinese authorities “very hard”, but she insisted that no proposal for an alliance had been made formally. She remarked the Japanese were about to scrap the Nine-Power Treaty³⁵ and inquired what the Americans and British were prepared to do about it, to which McHugh replied that of course he did not know. McHugh states that his informant gave every appearance of knowing about important activities which she was not at liberty to divulge.

3. American news correspondent states he has been informed by an official of the Ministry of Finance that latter is working intensively on some scheme of monetary reform. American advisers Young and Lockhart are in Nanking assisting.

Peck

35. Signed at Washington, February 6, 1922, Foreign Relations, 1922, vol. i, p. 276.