793.94/7003: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

119. Embassy’s 115, May 31, 7 p.m., and 117, June 1, 6 p.m.

The North China situation continues to be featured in the Japanese press but with less emphasis. The Foreign Minister is quoted in the press as attributing the difficulties in North China to local Chinese leaders specifically exonerating Chiang Kai-shek and favoring the localization of the issue. The Premier and the Foreign Minister in separate audiences with the Emperor are reported to have counselled moderation. Subsequent War Department releases indicate less intransigence than first statements although the Embassy has been unable to learn that the Army has reported to the Emperor in audience. The Army usually reports direct and not through the Premier.
From what can be learned here, particularly from Japanese Army officers, by the Military Attaché the points upon which the Japanese Army will insist are the replacement of Yu Hsueh-chung and his entourage, the withdrawal of Nationalist troops from North China and the suppression of organized anti-Japanese propaganda. The Japanese apparently expect the Chinese reply to be decided at a forthcoming conference of Chinese leaders at Hankow.

Repeated to Peiping.