793.94/5174: Telegram

The Minister in China (Johnson) to the Acting Secretary of State

511. Following from Kuo Wen, Nanking, May 6th:

“Dr. Lo Wen-kan issued a statement this afternoon with regards to the Sino-Japanese peace agreement signed at Shanghai last Thursday.

Dr. Lo expressed his confidence that the Japanese troops will be [Page 6] withdrawn to their defense position as before January 28 last, and that there will be no necessity for the Mixed Commission to exercise its function of reporting whether normal conditions have been reestablished in Shanghai or not.

The Foreign Minister defined the peace agreement in a press interview at 10 o’clock tonight. He said that since the conference began, Japan had brought up many unreasonable demands, which were successfully resisted by the Chinese delegates. For example, the Japanese first proposed a round-table conference to settle the Shanghai question. Then they suggested the establishment of a free port in Shanghai and the extension of the Settlement. They also brought up the demand for the suppression of the anti-Japanese boycott. All these demands were eventually withdrawn as a result of the efforts of the Chinese delegates.

Referring to the question of Japanese withdrawal, Dr. Lo said that the Japanese originally demanded an extensive area for their troops to withdraw to, but as the result of a prolonged argument on the part of the Chinese delegates, they agreed to the area designated in the peace agreement. The Japanese also brought up the question of the stationing of Chinese troops along the southern bank of the Soochow Creek and at Pootung, but the demand was withdrawn upon the opposition of the Chinese. Dr. Lo added that although the present agreement fails to provide for the immediate withdrawal of all the Japanese troops from Shanghai, it represents the best bargain which China can get under the existing international situation as well as the circumstances prevailing in China today. With the Shanghai affair settled, the Ministry of Foreign Affairs will turn its attention to the Manchurian question, which is the root of the Sino-Japanese controversy.

Concerning the Sino-Russian situation, Dr. Lo said that the Chinese Government had long been considering the question of resuming diplomatic relations with Soviet Russia, but recent events such as the failure of the Soviet Government to accord adequate treatment to the Chinese delegation at the Sino-Russian conference, coupled with reports that the Soviet authorities were treating with the puppet government in Manchuria, are likely to hinder the speedy restoration of friendly relations between the two countries.”

For the Minister: