793.94/4014b: Telegram

The Secretary of State to the Chargé in Great Britain (Atherton)

56. I held telephone conversation with Sir John Simon this afternoon. We have agreed that, in view of the Japanese project with regard to Shanghai reported by our respective Ambassadors in Tokyo, we will for the moment (a) suspend consideration of the note or notes under discussion during the past 2 days and (b) instruct our respective authorities at Shanghai, in case they are approached by Japanese authorities with regard to local negotiations, to cooperate.

Supplementing this conversation, I desire that you inform the Foreign Office of the above and of what follows and request that what follows be communicated in substance to Sir John Simon. At the time of our conversation, he had not yet received news of the Japanese Government’s project; but he agreed that the two Governments should act along similar lines.

I am instructing the American Consul General at Shanghai that, if so approached by the Japanese authorities, and if British and other authorities are so approached, he should cooperate with those and other authorities in an attempt to work out a solution on the basis of a program proposed by the Japanese which contemplates immediate cessation of hostilities in the Shanghai area, establishment of a neutral zone to be patrolled by neutrals, and some other features not definitely specified. The American Ambassador, Tokyo, reports he is informed [Page 243] that 3,000 Japanese troops will arrive in Shanghai or vicinity Sunday; that no other Japanese land forces have as yet left Japan; and that no more will be sent before Sunday or Monday, if at all.

For Consul General’s special guidance, I am stating to him that:

“We wish you to understand accurately our views, so that in your necessary work of participation in the negotiations you may protect the American interests involved without permitting commitments or precedents which may be embarrassing in the future.

  • First. This Japanese proposal is in no sense an acceptance of the recent proposal of the four powers for a permanent termination of the controversy. It omits the vital consideration inuring to the benefit of the Chinese. It must, therefore, be considered wholly as a proposal coming from Japan.
  • Second. Our interests, nevertheless, will be greatly benefited by a cessation of the hostilities which are now endangering the International Settlement, provided such a truce does not lay the foundation for a greater peril hereafter or obscure the principles which are now maintained for the protection of the International Settlement.
  • Third. With the foregoing in mind, (a) you should neither consent to nor, if possible, permit the landing of any new troops in the International Settlement except such as are designed for participation in the protection of the Settlement itself and are not intended for operations outside. If this principle is evidently to be violated, make an appropriate protest. (b) You should endeavor to secure as broad commitments as possible from both the Japanese and Chinese authorities to the effect that there shall be no interference with the neutral trade and commerce of the Port of Shanghai at any time, now or in the future; (c) you should endeavor to obtain commitments from the Japanese to the effect that none of the proposed new forces are intended for any permanent occupation outside the International Settlement and that all of such forces over and above the ordinary garrison heretofore maintained will be withdrawn as soon as the emergency is over; (d) you should avoid any pressure upon the Chinese which may give them any opportunity for statement or belief that we have sided with Japan in forcing them to make a truce to their own disadvantage, or any pressure upon them for action on their part which is not necessary for the defense of our interests in the International Settlement; (e) if the negotiations result in a proposal of a neutral zone outside of the Settlement between the present combatant forces, said zone to be patrolled by neutral forces, the American authorities are authorized in their discretion to acquiesce and participate, provided the Chinese have consented to such a zone.

Keep us advised of the progress of the negotiations and report any difficulties to us for such assistance as we may be able to give you.

You should inform Admiral Taylor in confidence, regarding the above. For the moment the Japanese Government requests strict secrecy.”

Stimson