THE INFLUENCE OF AMERICAN COMMERCIAL INTERESTS IN CHINA UPON UNITED STATES POLICY TOWARD JAPAN, 1937-1938

Abstract

The purpose of this thesis is to investigate the degree of influence which American business interests in China exerted upon United States policy toward Japan during the period 1937-1938. On the night of July 7, 1937, Japanese military forces invaded the Republic of China without a prior declaration of war. During the months of undeclared but unrestrained war which followed, foreign investments in the trade and industry of China were threatened with extinction. As hostilities became more widespread, business activity within China was brought to a virtual standstill; and properties owned by foreign commercial groups frequently suffered extensive damage. The Japanese Government, moreover, made deliberate efforts to force the withdrawal of all foreign industry and trade from those areas of China under its control. American business interests in China condemned Japan's war of aggression and called upon the United States Government to defend the commercial rights which were guaranteed by the Open Door Policy. Throughout 1937 and 1938, the commercial groups in China insisted that the government in Washington adopt more spirited measures against the Japanese. The business community was well organized and succeeded in keeping its observations and opinions regarding developments in China before the American Government and the American people. This study will investigate the role which American business interests sought to play in the formulation of United States policy toward Japan. A most valuable source of primary materials was provided by Volume I of the Foreign Relations of the United States: Japan, 1931-1941, a compilation of diplomatic papers published by the Department of State in 1943. The China Weekly Review, an English language newspaper published in Shanghai, reflected the attitude of American citizens resident in China during 1937 and 1938. The Commercial and Financial Chronicle, a leading commercial journal, indicated the opinion of businessmen in the United States toward the war in East Asia. The Congressional Record revealed what was being thought on Capitol Hill in the period 1937-1938. Henry L. Stimson's On Active Service in Peace and War, Joseph C. Grew's Ten Years in Japan, and The Memoirs of Cordell Hull, provided valuable insights into United States foreign policy. Several secondary sources were of special value in this study. John w. Masland's "Commercial Influence Upon Far Eastern Policy '', published in the Pacific Historical Review, must be rated as of primary importance. An excellent survey of the nature and value of American commerce in China was