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2.
Chinese had now however had time to recover their strength, but it would be very difficult for them to continue the struggle unaided for more than a few months longer. The financial situa- tion in particular gave great cause for anxiety. Expenditure was eight times as large as revenue and over a third of the
reserve funds had been exhausted. The Ambassador added that
he hoped we should be able to assist China to maintain her
currency.
る。
The four Japanese peace conditions comunicated by the
German Ambassador had not been rejected, but when Chiang Kai-
shek had on the 13th January asked for elucidation on certain points, the Japanese Government had in reply merely issued their statement of the 16th January. The Chinese Government
had however never expected more than an armistice.
4. Mr. uo thought that the germans felt anxiety both at possible loss of Chinese market and at weakening of their ally. Their attitude would become decreasingly friendly to Japan, and signs of this had been shown at a recent diplomatic
recption in Berlin.
5. Finally, the ambassador mentioned that the new rond to use in Burna would be finished in March and that he hoped the Burmese portion of the road would be made strong enough to carry heavy traffic in all weathers.