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6. Arrangement on above lines appear to me to offer some way of mitigating objections which cannot fail to be raised against your proposals. This modification would seem to take appropriate account of present conditions as seen here and may accept them as a genuine contribution to meet their difficulties. Anything less they would probably have to reject not because they do not wish to give you their co-operation but simply because of the effects on the continuation of their war effort which it is of such importance to maintain.

Repeated to Chungking telegram No. 192 Washington

Tokyo telegram No. 7 Saving Shanghai telegram No.36 Saving.

[Note by Communications Department:

(1

Received very corrupt.

(2) Received entry coraley

Copies sent to Mr. Waley Treasury.]

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Page 175

21

DEC

11

1940

KU RESTRY!

2.

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