2.
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that Sir Frederick Leith Ross had commented to him at Shanghai
on T. V. Soong's financial abilities.
3.
Monsieur
I asked why the Italian Ambassador was returning home;
likewise the German Ambassador. I said that at Hongkong it
was reported that Monsieur Cora was at Hongkong in order to
negotiate a breach between Canton and Hankow. H. E. said that
he knew nothing about this last alleged intrigue!
Cora was returning to Italy at the expiry of his term of office.
Dr. Trautmann, on the other hand, was being re-called to explain
his conduct. General u asked that he should not be quoted,
but he told me that originally the Japanese demands to Germany
had been four: (1) withdrawal of German advisers; (2) cessation
of all supplies of munitions, etc.; (3) supply of economic
advisers to the Japanese Government; (4) supply of one thousand
Junker planes. The German Government, in view of its desire
for Japanese help in Europe, had been obliged to meet the wishes
of the Japanese Government as regards (1). Demands 2, 3 and 4
were not being met. He went into the history of negotiations
with the German Government in regard to (1), and I gather that
it was because the German Government are not entirely satisfied
with Dr. Trautmann's conduct over these negotiations, that he
was now proceeding to Berlin.
(Signed)
A. P. Blunt
30th June,
1938.