FO371-23516 — Page 63

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F 3007

113

From CHINA.

27 MAR 1939

Decypher. Mr. Greenway (Chungking).

D.

Wireless.

R. 4.40 p.m.

No.123.

March 23rd 1939.

March 24th 1939.

March 24th 1939.

Addressed to Embassy Shanghai telegram No.252 of March 23rd.

Confidential.

F2462

Your telegram No.238 to Foreign Office.

Minister of Economic Affairs told me today in confidence that

Herr Voigt an emissary of German Ministry of Economic Affairs in

Berlin had come here in connexion with barter agreement which Germans

were most anxious to renew but on terms as yet unspecified.

Mr.

Wang Wen-hao said that existing agreement was in any case an extremely

vague one. He added that Germans had recently announced their

willingness to sell guns, munitions etc. to China for cash; and other

supplies on credit.

Minister said that Germans (whether Voigt or German Embassy

here I did not like to ask) were hinting very strongly that if

commercial relations [? grp. omtd] offer greater developments in

the near future Germany would have to recognise Nanking puppet

government and would change her policy towards China.

Voigt had assured Chinese that Germany was prepared greatly to increase her purchases from China which would be stored against the day when war was declared in Europe.

I gathered that Wolff's representative has already arrived and question of credits has been brought up. Mr. Wang explained that for political reasons Chinese Government find it very difficult to take any decision in these matters. They will procrastinate as long as possible.

Repeated to Foreign Office No.123.

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