793.94/4475: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received February 29—8:35 a.m.]
I learn on what appears to be reliable authority that Japanese are extending feelers for conference with Chinese on the basis of mutual withdrawal. Japanese are understood to be suggesting in addition a round-table conference of all powers to discuss future of Shanghai. At such a conference it is stated Japanese will propose a demilitarization of 20-kilometer area and that area covered by Chapei both south and north of railway and area between Woosung Railway and Whangpoo River north of Yangtzepoo to be added to area of International Settlement. Japanese state they desire no concession of their own.
Above obviously is a bid for foreign support of Japanese terms.
I am informed authoritatively that a meeting of both sides participated in by Matsuoka and Wellington Koo actually took place last [Page 474] night on His Britannic Majesty’s ship Kent but I am still trying to get confirmation of above proposals. I have no doubt, however, that above represents military idea of suitable settlement of what Japanese are pleased to term the Shanghai question. As a government I suggest that we will have to consider our attitude toward this or some similar set of proposals in light of our known policy in regard to Shanghai. Proposal to add suggested area to International Settlement would be a blow to Chinese pride as area in question is place where they were planning to establish administrative center of new and greater city of Shanghai. My informant Hallett Abend, who I understand telegraphed above to New York Times, states that above proposals were laid before Chinese last night who referred them to Nanking and Loyang.