THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT
247
FAR EASTERN (CHINA)
CONFIDENTIAL.
[F 11777/9/107
Mr. Eden to Mr. Howe (Peking).
December 31, 1937.
SECTION 1.
9
Copy No.
119
(No. 787.) Sir,
Foreign Office, December 31, 1937. THE Chinese Ambassador asked to come and see me this afternoon, when he said that I would no doubt have heard from Sir Alexander Cadogan of the 66 peace terms which the German Ambassador had transmitted to General Chiang Kai-shek as a result of Japanese initiative. These terms had been considered quite unacceptable by the Chinese Government and had been rejected. His Excellency added that he had been instructed to tell me of this and to ask for my view of the Chinese Government's action.
2. I replied that I had received some account of the terms from Sir Alexander Cadogan and from Hankow. They appeared to be more rigorous than those previously offered before the fall of Nanking. The Ambassador replied that this was definitely so; all the previous Japanese demands were included and some others added. The terms included provisions for special regions and special tariffs which meant virtually Japanese control of Chinese trade and of large areas of China not only in the north and at Shanghai, but possibly at Nanking also. On his Excellency repeating his request for my view of the Chinese action I replied that this was a matter on which I felt it improper for me to express an opinion. Such a decision could, of course, only be taken by the Chinese Govern- ment on its own responsibility. The Ambassador at once rejoined that the Chinese Government had already taken a decision, they only wished now for the view of a friend. I rejoined that I fully appreciated Chinese sentiments in the matter and readily understood that, having refused less onerous terms a short while ago, the Chinese Government were not now disposed to accept those more recently offered. They no doubt took the view that there had been no deteriora- tion in the military situation such as to justify so decisive a change of front by the Chinese Government.
3. The Ambassador agreed with this, and added that recently there had been some improvement in the situation from the Chinese point of view. They had even recovered some eighteen districts in Shansi. Their army was being organised and they were receiving a certain amount of help in the supply of munitions and in the matter of credits from abroad. In reply to a question, the Ambassador said that Soviet Russia was now giving more help than she had done previously, especially in the matter of aeroplanes. The United States were also helping both in the supply of munitions and financially. His Excellency con- tinued, however, that it was very urgent for the Chinese Government to receive still more help in the way of munitions. His Excellency knew our difficulties, but he begged that we would strain every nerve to try and supply his Government with some quantities of munitions. Aeroplanes would be especially useful, even though the quantity was not large.
4. I replied that General Pai Chung-hsi had spoken to Mr. Gage at Hankow on this matter and had also asked that we should arrange for the training of some Chinese pilots, either at Singapore or in this country. So far as the training of pilots was concerned, we had no facilities for training at Singapore, but we should be glad to try to provide facilities in England if his Excellency did not consider that considerations of time and distance made this impossible. The Ambassador said that he was sure his Government would be grateful for the offer, though he appeared to consider that financial considerations, as well as those of time, might make it difficult for his Government to accept. As a result of the interview between General Pai and Mr. Gage, I continued, we had been in communication with the Air Ministry, who had made the most exhaustive examination to see whether any aeroplanes were available. Unhappily, the Chinese Government had already received all that were available. His Excellency would understand that it was not because we did not want to sell, but literally because we had nothing
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