Foreign Relations of the United States Diplomatic Papers, 1941, The Far East, Volume V

893.51/7372

Memorandum by the Chief of the Division of Far Eastern Affairs (Hamilton) to the Secretary of State

[Washington,] December 31, 1941.

Mr. Secretary: If Manila falls soon to the Japanese, the effect on the morale of the Chinese and of other native peoples in the Far Eastern area is bound to be adverse.

With regard to China, I think it important that this Government be prepared to grant promptly to the Chinese Government a substantial loan (Ambassador Gauss reported in his telegram no. 548 of December 30 that Chiang Kai-shek had requested such a loan⁶⁵). I suggest that you may care to speak to the President in regard to this matter.

With regard to other native peoples in the Far East (the natives of Malaya, the Dutch East Indies, India, Burma), I think it important that Colonel Donovan’s⁶⁶ organization put forth unusual and special effort to disseminate propaganda favorable to our cause. I suggest that you might care to speak to the President on this point with a view to the President’s possibly speaking to Colonel Donovan.⁶⁷

M[axwell] M. H[amilton]

65. Notation by Mr. Hamilton: “Mr. Berle is having studied the question of a loan. M. M. H.”
66. Col. William J. Donovan, Coordinator of Information.
67. Notation by the Adviser on Political Relations (Hornbeck): “Concur. S. K. H.”