File No. 763.72/531

The Chargé d’Affaires in China (MacMurray) to the Secretary of State

[Telegram—Extract]

Liang, Minister of Communications, advises the Legation in strict confidence that the note in which Japanese Legation communicated to the Minister for Foreign Affairs the ultimatum to Germany stated that the matter is one that does not concern the Chinese Government which was advised to remain absolutely passive in regard to it; and it announced to the Chinese Government that if any internal disturbances should arise in China, Japan and Great Britain would undertake to suppress them. In reply to informal inquiries as to the possibility of Germany’s retroceding Kiaochow directly to China, British Minister informed the Chinese that his Government could not now recognize such a transfer. In view of the threatening attitude adopted by Japan and apparently acquiesced in by Great Britain, the Chinese Government dares take no official action.

Liang, however, on his own responsibility requests me to telegraph to the Department an intimation that it would be acceptable to the [Page 174] Chinese Government if the United States were to find it possible to undertake to bring about the immediate retrocession of the leased territory and he suggests that the purpose might be accomplished by the American Government approaching Great Britain and Germany with a proposal that, in order to avert hostilities, the German rights in Kiaochow might be ceded to the United States for immediate transfer to China. He added that the Chinese regard the occupation of Tsingtao by Japan as a menace to the independence of China....

MacMurray