414 FOREIGN RELATIONS, 1934, VOLUME III

exchanged certain messages and were arranging to meet in order to
try to devise and propose a plan of compromise and settlement (?%) ;
and at that point Rajchman had told Soong that this was not an
advisable course, with the result that the project fell through. Rajch-
man’s attitude and activities had made him distinctly persona non
grata to the Japanese. Later Soong had come to this country and
had succeeded in concluding the $50,000,000 cotton and wheat credit
per the R. F. C. Then Soong had gone to Europe. Soong’s effort
had been “to build himself up” for a contest for power with Chiang
Kai-shek. In Europe he had not accomplished much. He had pro-
posed the formation of his “advisory council”. Both Mr. Lamont
and Sir Charles Addis had told him that he should not plan to
exclude the Japanese. Mr. Lamont had declined to serve—as had
also Sir Charles. (Note: See memorandum of conversation between
T. V. Soong and Mr. Hornbeck of August 8, 1933.8) Then Soong
had come back to this country, had seen the President at Hyde Park,
had explained his project to the President, and had been given by
the President the names of various Americans whom Soong might
ask to have on his council. Among these was the president (?) of
the New York, New Haven and Hartford Railway, who had in turn
consulted Mr. Lamont as to whether he should accept the invitation
which Soong subsequently had extended to him. But when Soong
got back to China, Chiang Kai-shek had put him out of office and
vetoed his project for an “advisory council”.

Meanwhile, Mr. Lamont said, Soong had invited Jean Monnet and
Sir Arthur Salter to come to China. They had gone. Salter produced
a report on the economic situation in China. Monnet had developed
the project and taken the initiative which brought into being the
China Development Finance Corporation. The Japanese had been
very suspicious of Monnet and had opposed his efforts and project.
This, in part at least, had brought on the Japanese statement of
policy (the Amau statement) in April last.°° Among the Chinese,
various of the bankers, among whom was Li Ming and the Bank of
China, had been opposed to the China Development Finance Corpo-
ration project. But ultimately they had subscribed to it. Next, Mon-
net had set himself—and Mr. Lamont had suggested to him that he
do so—to getting acquainted with the Japanese and allaying their
suspicions and misunderstanding of him and the China Development
Finance Corporation project. Monnet was now in New York and
was expecting soon to come to Washington and would call on Mr.
Hornbeck.

——

 

 

® Foreign Relations, 1933, vol. I, p. 643.
° See telegram No. 71, April 18, 5 p. m., from the Ambassador in Japan, p. 112.