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Memorandum by the Minister in China (Johnson)44

Mr. Shigemitsu, Japanese Chargé d’Affaires, called and we discussed his visit to Tokyo. He said that the situation at Tokyo was very complicated because of the change in Government; that everyone was busy with things that did not matter. I inferred from what he said that the political situation which ensued upon the change of cabinet was such that very few seemed to have opportunity for discussion of the Chinese question.

Mr. Shigemitsu said that Japan was very anxious to reach an accord with China on the question of extraterritoriality and to that end was prepared to follow the method that was being used in the negotiations by the United States and Great Britain. He said that Japan’s position was more complicated than our position because of their interests in Manchuria. I inferred from what he then said that Dr. C. T. Wang had insisted that Japan could not have freedom of residence and trade for its nationals in China except as a corollary to the relinquishment by Japan of the leasehold of Dairen, the removal of Japanese railway guards, presumably the return of the South Manchuria Railway, [Page 844] the giving up of Japanese concessions and the removal of Japanese naval vessels. Mr. Shigemitsu stated that this was the first time that Dr. Wang had injected these matters into the discussion of Japan’s extraterritorial rights.

He pointed out that Japan had a great number of nationals and protected people who were living outside of the treaty port areas and enumerated something over a million Koreans in Manchuria alone and some two hundred thousand Japanese. Furthermore, he said Japan already possessed by agreement with China rights of residence and trade in Manchuria and in the area of Kiaochow.

He said that when China took the stand that Dr. Wang had taken the life line of Japan was really endangered. Japan’s position in Dairen and along the South Manchurian Railway was not alone a sentimental one but was considered a military necessity. Japan after all had to take into consideration the position of Russia in the Far East and the five year plan of the Soviets and no Japanese government would permit them to face once more the situation which they had had to face some twenty-five years ago. If it were only a question of China proper he felt that it would be not so very difficult to reach an understanding but if Manchuria was injected into the picture then it was going to be very difficult indeed as Japan’s position in Manchuria was a military position and Japan could not afford to see her first line of defense destroyed.

Mr. Shigemitsu stated that the new Government in Japan had come in on a platform of retrenchment and had announced that there must be a cutting down of army personnel and that this was making a great stir among the politicians and especially in those groups under the influence of the military.

Nelson Trusler Johnson
  1. Copy transmitted to the Department by the Minister without covering despatch; received June 11.