793.94/4904
Memorandum by the Minister in China (Johnson)2
Dr. Wellington Koo called on me today and informed me that he had heard a rumor to the effect that the Japanese would land and march through the Settlement for the purpose of making an attack upon the Chinese forces through the sector controlled by the British and Americans. I told Dr. Koo that I thought that this was an absurd rumor, that I knew of no reason why such a rumor should start and that of course the area controlled by Americans was not open for the passage of armed troops of either side.
Dr. Koo stated that the Chinese were determined to continue their resistance. He asked me whether I had given up hope of persuading [Page 439] the Japanese to take a more moderate tone. I told Dr. Koo that I was somewhat discouraged. I said that I had not been willing to be the bearer of dictated terms to the Chinese. I said that in my opinion the Japanese had felt that they had suffered a serious blow to their prestige here in Shanghai, and that they must find some means of restoring their prestige, and that I thought that they would continue until they had at least driven Chinese forces beyond the 20 kilometers which had been mentioned in the Truce discussions of the other day.
Dr. Koo asked me whether the United States would cooperate with the League in bringing about the imposition of economic sanctions against Japan. I told Dr. Koo that I had no information as to what attitude the American Government would take on this matter, but that it was my private opinion that the Government of the United States would be reluctant to enter into any arrangements for the establishment of economic sanctions against Japan. I said that I did not believe that any Power existed under which the United States Government could administratively join in the imposition of such sanctions, and that I thought it would be very difficult to obtain the necessary legal basis for such action through congressional action at this time.
- Copy transmitted to the Department by the Minister in his despatch of March 2, 1932; received March 26.↩