793.94/2475: Telegram

The Consul at Geneva (Gilbert) to the Secretary of State

276. The following are the essential points in a conversation which took place between Drummond and Sze last evening:

1.
Sze presented a note from the Chinese Government dated November 3 accompanied by a memorandum (the note and memorandum are being transmitted as sections 2 and 3, respectively, of this telegram).
2.
Sze called special attention to the seizure of the salt revenue by the Japanese military authorities and pointed out that this was a distinct interference with the Chinese administration and contrary to pledges given by the Japanese representative. He stated his fear that the situation was growing much worse. He declared he was considering whether he should not ask an earlier meeting of the Council. He feared that if the Council did not move until November 16 it might be confronted with a most grave situation. He expressed his belief that the Japanese advance was causing anxiety to the U. S. S. R. and it might well develop that by November 16 additional complications might arise through difficulties between the U. S. S. R. and Japan. He envisaged that the Japanese might ask the Council for assurances for the safety and property of their nationals from Russian as well as from Chinese elements.
3.
Drummond replied that the news in the Chinese note under reference alarmed him and that he would transmit it at once to the members of the Council. He could not advise whether an earlier meeting of the Council was desirable or not but he felt that the President and members of the Council would take the note into consideration in this connection.
4.
Sze made clear that he was in no way presenting a request for an earlier meeting of the Council, as he preferred that such a decision should emanate from the council.

The following is the text of the Chinese note of November 3rd:

“The Chinese Government is gravely concerned over the developments in Manchuria since the adjournment of the Council. The attached memorandum which contains a summary of these developments shows that, although 10 days have elapsed since the adjournment of the Council on October 24 and more than a month since the adjournment of September 30, not only has there been not the slightest preparation for withdrawal but on the contrary the Japanese Army is steadily extending and consolidating its grip on South Manchuria and is making attempts to penetrate into North Manchuria that are causing anxiety in Moscow.

It may be remembered that in the resolution of September 30 which was accepted by and is binding upon Japan it was stated that the Japanese Government ‘will continue as rapidly as possible the withdrawal of its troops, which has already been begun, into the railway zone in proportion as the safety of the lives and property of Japanese nationals is effectively assured.’ The declaration made over a month ago that withdrawal had already been begun is unfortunately not substantiated by the facts. Not only has withdrawal not been begun but the Japanese Government now refuses to honor the promise it made before the Council and declares that it will not begin withdrawal until it has negotiated an agreement with China on certain ‘fundamental principles’. This new policy was set forth in the Japanese Government’s note to the Chinese Government on October 9 and again before the Council on October 23 and 24. This position was reiterated a few days ago when the Japanese Government refused to appoint representatives to discuss with the representatives of the Chinese Government the details and methods of withdrawal as proposed in the resolution submitted by the Council on October 22 [Page 359] (referred to by this office as the October 24 resolution). The measures proposed in this resolution which retains its full moral force are merely indications of how to carry out the policy to which both parties were pledged by the resolution of September 30. It is this which makes the Japanese Government’s changed attitude and insistence upon an agreement upon ‘fundamental principles’, by means of direct negotiations, as a preliminary to withdrawal, so profoundly disquieting.

This attitude of Japan as was pointed out in the Council on October 23 and 24 is in violation of article X of the Covenant and article 2 of the Pact of Paris. The Chinese Government must reiterate its firm determination never in any circumstances to agree to negotiations under the pressure of military occupation and confidently looks to the members of the League and the United States not to suffer the Covenant, the Pact of Paris and the Washington Nine-Power Treaty to be trampled under foot.”

The following is the text of the memorandum accompanying the Chinese note of November 3rd:

“The following is a digest of the information received in cablegrams from Nanking during the last 3 days:

(1) Means to assure withdrawal.

The Chinese Government has appointed a commission to arrange with the representatives of the Japanese Government the details of withdrawal, taking over the evacuated areas and assuring the safety of the lives and property of Japanese subjects in those areas. This Commission is composed as follows: Chairman: Mr. V. K. Wellington Koo. Members: Messrs. Chang Tso-hsiang, Chang Chun, Wu Tieh-chen, Lo Wen-kan, Tang Erh-ho and Liu Chi.

On being notified of the appointment of this commission and requested to designate its own representatives, in accordance with paragraph (5) of the resolution proposed by the Council on October 22, the Japanese Government replied that this resolution was not in force, and that, with reference to the taking over of occupied places by the Chinese, the attitude of the Japanese Government had been indicated in its note of October 9th in reply to the Chinese Minister’s note of October 5th. In its statement of October 26th the Japanese Government had again indicated its policy with regard to the settlement of the Manchurian affair; and that it was hoped that the Chinese Government would agree to this policy and enter into immediate negotiations for an agreement upon fundamental principles for reestablishing normal relations between Japan and China and the withdrawal of Japanese troops to the railway zone.

(2) Consolidation of the Japanese hold on South Manchuria.

General Honjo’s headquarters recently informed Mr. Pearson, who is in the employ of the Ministry of Finance, that the entire salt revenue of Manchuria ($24,000,000 annually) must go to the Mukden Government. This revenue is the security for various foreign loans, and any tampering with it is a violation of international obligations. The recent Japanese raid on the customs office at Mukden, it is feared, foreshadows such activity, in accordance with the ‘independence’ program [Page 360] of cutting the Three Eastern Provinces financially loose from China.

A cable received today confirms the fact of the forcible seizure by the Japanese troops of salt revenue of Newchwang to the amount of $760,000.

In Mukden, as reported in the German Government’s communication to the Council of October 23 and confirmed by later reports from Nanking, the Japanese have appointed Japanese advisers to all the local banks of issue and commercial establishments and are in general closely controlling the whole public life of the city.

The Japanese have collected and transported to Japan in 600 cases $1,200,000 in cash. Over 300 army sheds have been constructed at Mukden and 40 at Chuliuho, where an artillery regiment and a cavalry detachment are preparing for a lengthy stay.

The Ministry of Railways: The Chinese-owned Mukden-Hailung Railway was taken over by the Japanese on October 15 and is being operated under their control.

Japanese troops have built a platform by force between Manchuria [?] and Shinglungtien Stations on the Peking-Mukden Railway for loading and unloading military stores.

(3) Fomenting disorder and extending Japanese influence.

Japanese airplanes aided Mongolian bandits against Chinese troops at Tungliao on October 31 and on the same date a Japanese armored train and two troop trains with several carloads of material left Chengchiatun for Chienchiatien.

On November 1 four Japanese armored trains arrived outside Shutao Station and fired several shots at the city. There are several thousand Mongol bandits behind the Japanese troops preparing an attack on Tungliao.

Mongolian troops and brigands are plundering the Tsitsihar-Taonan Railway with Japanese assistance.

The Japanese are supplying Lin Yin-ching with ammunition to help his so-called self-defense army in making an attack on Chinchow to exterminate the influence in Manchuria of Marshal Chang Hsueh-liang, the representative of the Chinese Government.

The Chairman of the Provincial Government of Heilungkiang, the most northern of the Manchurian provinces, was visited by the representative of General Honjo with the demand that he repair the bridge over the Nonni River within a week, failing which it would be repaired by the Japanese troops. This move was undertaken in order to facilitate the crossing of the river by the Japanese protégé, Chang Hai-peng, who is preparing to attack Heilungkiang. Later two Japanese representing General Honjo called upon the Chairman of the Heilungkiang Provincial Government and told him that Japanese could not recognize his authority because he had been appointed by the Chinese Government and ordered him to hand over his office to Chang Hai-peng on pain of being turned out by force.

The Japanese troops in Kirin Province have compelled the local gentry to present a petition to the Japanese staff requesting that Japanese troops remain to insure order and protectorates [peace] and have forced the self-constituted provincial government to dismiss the head of the tax bureau and seized the salt revenues.

[Page 361]

The above are merely a few salient facts. To them must be added; a series of arrests and imprisonments and coercion of every description against all who in any way represent the lawful authority of the Chinese Government; the arrival of more troops and military stores; the activities, military and political, of Japanese airplanes; and in general the unceasing attempts of the Japanese Army to convert their illegal military occupation into a political and economic strangle hold upon the unhappy country today invaded.[”]

Gilbert
  1. Telegram in three sections.