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maximising external assistance, would welcome the extension of British help. I think it is probably correct to say that in the last few months the Russian fear of Japan has greatly diminished. The very remarkable victory of the Russians on the Manchurian border, and the great mass of Japanese troops that are immobilised in China, have made the Russians take the view that there is no imminent threat from Japan. Indeed, Japan has more than she can do in China itself, since she now finds herself bogged in many portions of Central China. It is not unlikely that, as Russia's fear of Japan diminishes, so her practical help for China will diminish, especially in view of her preoccupation with affairs on her western frontiers.
121. The French have, of course, a special interest in affairs in the Far East, due to their possessions in Indo-China, but they have not shown themselves interested in China itself, nor have they any very great trading interests, apart from the main centres on the coast, except in Yunnan in connexion with the railway from Haiphong and the new railway that is to be built. Curiously enough one never hears reference to France as a Power of any importance so far as China is concerned. The three Powers constantly mentioned are Great Britain, America and Russia. According to the latest and most reliable information available in the Far East, France is now trying to arrive at a general settlement with the Japanese and has definitely abandoned her desire to assist China at the risk of antagonising Japan. Her strong protests over the Yunnan Railway are regarded as nothing more than pressure to get a better deal out of Japan.
122. The United States of America is undoubtedly regarded as the most disinterested helper of China. There are a great number of Americans helping in various ways and the United States Government is very sympathetic. The Chinese well understand and appreciate the difficulties of the Administration in the United States, especially now that the presidential election is imminent. They compare the assistance given by Great Britain unfavourably with that given by the United States. The American Ambassador is a very charming, hail-fellow-well-met, person with an intimate knowledge of China and of the Chinese character, and is consequently very popular. He is not, however, a person with any very great drive, nor is his counsellor, Peck, who is also a charming person with a very keen knowledge of China. It is agreed on all sides that a greater measure of co-ordination of British and American Far Eastern policy would be of very great advantage, and both the Chinese Ministers and the American diplomats were most anxious that I should go to Washington to discuss this matter in the light of the first-hand knowledge that I had obtained in China.
123. The attitude of the Chinese Government to Great Britain is friendly but not cordial. They have the deepest admiration and affection for our ambassador, as anyone is bound to have who has had the privilege of meeting him, and they regard him as a very keen guardian of British rights. Just before I left Chungking, Dr. Kung said to me that he hoped I would realise that, however sympathetic our ambassador was to Chinese aspirations, he was first and foremost and all the time a supporter of British interests, and that often he had had strong arguments with the ambassador over Chinese requests to which he would not give way. The constant turning down of all sugges- tions put forward for helping China, owing to the fear of antagonising Japan, has had a very bad effect upon the Chinese opinion of Great Britain, and when speaking frankly and confidentially both the Generalissimo and his Ministers are apt to be rather scathing about the British attitude to Japan. One hears the same thing from Chinese of all classes and grades, and even from a great many people in Hong Kong. It is necessary, unfortunately, to report that British prestige has sunk to a very low level in China and the Far East, and were it not for the excellence of our ambassador and his untiring efforts it would have sunk even lower.
124. There is one aspect of British relationships to which, in my view, a great deal more attention should be paid, and that is the relationship between India, Burma and China. I have dealt with this matter to some extent in the Transport" section so far as Burma especially is concerned, but I should like to emphasise the need for developing Sino-Indian and Sino-Burmese friend- ship. Undoubtedly, with the opening up of Western China, there must grow up in the future a much closer relationship with the countries in the west, and great opportunities will occur both for India and Burma, especially as Índia
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