The Chinese Foreign Debt Redemption Negotiations and the Roles of Japanese Foreign Minister Shidehara and Deputy Minister to China Shigemitsu

Treating the roles of Foreign Minister Shidehara Kijuro and Deputy Minister to China Shigemitsu Mamoru concerning the Chinese foreign debt redemption negotiations from 1929 to 1931, this paper examines two choices within the Japanese Foreign Ministry symbolized by these two influential diplomats.<br>When the National Government came to power in China in the late 1920s, a great amount of debt to foreign countries, such as Japan, Great Britain, and the United States of America, had already been accumulated. Redemption of this Chinese foreign debt became an international issue between the National Government and the related countries. In particular, Japan had extended huge credits to China, such as the so-called Nishihara Loans during the First World War. It could almost be considered a test case for Japanese economic diplomacy led by Shidehara for Japan, Britain, and America to recover their foreign credits to China and at the same time maintain good relations with China.<br>Sino-Japanese negotiations over the Chinese foreign debt redemption began formally in the spring of 1930. However, some political leaders within the National Government of China, such as Minister of Foreign Affairs Wang Cheng-ting, repudiated payment of the Nishihara Loans. Although the international creditors conference was later held in November of the same year, the participating countries failed to reach agreement and Shidehara's attempt to search for Anglo-Japanese cooperation was in vain.<br>Approaching Chinese Minister of Finance Sung Tzu-wen, Shigemitsu, on the other hand, tried to break the deadlock by conceding to reducing the amount of the Nishihara Loans. Shigemitsu envisioned aiding Chinese nation building led by Chiang Kai-shek and Sung Tzu-wen by linking the foreign debt redemption with Japanese reinvestment into China. Shigemitsu firmly believed economic cooperation with China was indispensable to Japan because the policy of cooperation with America and Britain was no longer working well.<br>Shigemitsu's plan was seen as going beyond that of Shidehara, whose basic foreign policy outlook was that of cooperation with America and Britain. Shidehara sought to keep Japan in line with America and Britain when he negotiated with China on issues including extraterritoriality and the transfer of foreign legations. Although Shigemitsu went to Tokyo and talked with Shidehara, the gap between them was not bridged. Returning to China, Shigemitsu resumed negotiations and a foreign debt redemption plan was agreed to informally between Japan and China. However, in the end, the debt was not recovered due to the outbreak of the Manchurian Incident.<br>In the conclusion to this paper, after reviewing the two foreign policy options within the Foreign Ministry symbolized by Shidehara and Shigemitsu, the influence of the Japanese Army after the Manchurian Incident on these two options is discussed.