893.48/1112
Memorandum by the Chief of the Division of Far Eastern Affairs (Hornbeck)
Mr. Mackay brought Mr. Hunt to my office and left Mr. Hunt with me. Mr. Hunt gave me a résumé of developments, including conversations, relating to his project for a purchase by China of cotton, on credit, in this country and sale by China of that cotton to German interests, payment to be made to China by German interests. He mentioned the inquiry which he had made sometime ago whether, in the event of favorable action elsewhere in the Government upon this proposal, the project would, when it got to the State Department, meet with objection. After an exchange of comments on the subject of “hypothetical questions”, wherein Mr. Hunt gave evidence of considerable familiarity with that subject, I said that, in order to save time and to be perfectly frank, I would have to say that: “We have thus far not discovered that any agency of the executive branch of the Government is in favor of this proposal.”
Mr. Hunt then asked whether he might inquire what objections were advanced to the proposal. I said that it seemed to me that the burden of convincing the Government that the proposal should meet with favor rests with the proposers; and that it is not incumbent upon those who have not been convinced to advance reasons in explanation of their not having been convinced. I said that the burden of the argument, if any, should fall on the affirmative side. Mr. Hunt said that he felt that my feeling was fully warranted and that he did not wish to press the point, but he would appreciate it if I could give him any indication as to whether the doubt was in regard to the economic or in regard to the political aspects of the project. I replied that, to be frank, it seemed to be with regard to both aspects. Mr. Hunt then said that he had talked with Mr. Jesse Jones and he felt that Mr. Jones was favorably disposed although he (Hunt) was fully aware that in January Mr. Jones had been definitely unfavorable. At that point I made no comment.
Mr. Hunt then went on to tell me about some other of his business projects in China, especially the contract with regard to which he had had difficulty with the Mayor of Nanking. The conversation continued for a half hour and Mr. Hunt gave no evidence of feeling badly over the indication which I had given him that his cotton credit project was not regarded with favor. In parting, Mr. Hunt said that he would doubtless wish to come to see me from time to time. I replied that I would be glad to see him at any time. He intimated that he was going to talk further with Mr. Jones. I asked him to [Page 501] remember that what I had said to him with regard to the cotton credit project was that “We have thus far not discovered that any agency of the executive branch of the Government is in favor of this proposal.”51 Mr. Hunt said that he clearly understood.
- Raymond C. Mackay’s memorandum of October 28, 1936, initialed by the Secretary of State, stated that under existing conditions the American Government should refrain from extending to the Chinese credits of the nature indicated above (893.48/1113).↩