Chiang’s strategy of hinting at talks with Japan without ever holding any official meetings offered two main benefits. It made Japan hold on until well into 1940 before finally allowing Wang Jingwei to set up a government in Nanjing, and it sent the Western powers the message that if they did not grant further assistance to Chongqing, Chiang would be forced to seek some sort of agreement with the enemy. On November 30, Wang Jingwei’s government was officially recognized by Tokyo. On the same day the US government announced a loan arrangement of US$100 million to Free China, as well as the
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