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The Minister in Switzerland (Wilson) to the Secretary of State

35. This morning during a pause in the plenary meeting Sato sought out Gibson and Davis who were sitting in an anteroom and requested permission to sit down and talk with them.

In substance he said that he and Matsudaira were deeply concerned about developments at Shanghai and admitted that they had reached such proportions as not only to jeopardize their position in Manchuria but to necessitate either a greater military effort at Shanghai or cessation [Page 426] of hostilities. They were convinced the latter course was essential and were considering making strong recommendations to their Government that Japan take initiative in proposing steps to terminate hostilities and to establish peace with the concurrence and assistance particularly of the United States and England.

He seemed to think that it would be more logical to proceed under the Nine-Power Treaty which has the advantage of excluding Russia but perhaps the disadvantage of bringing in the few small powers parties to this treaty that could contribute little to a settlement.

Another thought which seemed to strike Sato as important was that the Nine-Power Treaty was the most logical approach in that it gave to Japan the means of taking the initiative thus saving its face and provided the possibility of a hopeful result before the meeting of the Assembly March 3.

In conclusion Sato said he and Matsudaira were seriously worried by the way the Japanese military authorities had got out of hand and felt that unless Japan’s future was to be jeopardized some means must be found for stopping hostilities, reestablishing cooperation with the Western Powers and getting the conduct of affairs back into the hands of the civilian authorities and that they would make strong recommendations along these lines to their Government.

Wilson