793.94/7031: Telegram

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

151. My 150, June 13, 11 a.m.

1. I learn from authoritative official source that Council decided to reject fresh demands which, in addition to those described in my 150, included:

(1)
Japanese supervision of steps taken in compliance with the previous demands;
(2)
the setting up in North China of a “Neutral Commerce [Committee?]”; and
(3)
Japanese approval of all officials appointed in that area.

The decision was not to refuse compliance with the previous demands, all of which have been or are being fully acceded to.

2. The informant states that Takahashi on June 11 presented to Ho Ying-chin for signature a written form of agreement to previous demands and fresh ones above mentioned. Ho telegraphed for instructions and Council decided it must direct him not to sign and to prepare for eventualities, this decision being based upon reasons cited in my June 13, 11 a.m., and because of feeling that although the Chinese were faithfully complying with previous demands, it now seemed that Japanese requirements would be unending and the Chinese Government would have to stand firm at some point.

3. Other sources confirm the above. Chinese Government circles are gravely concerned, a spirit of hopelessness is apparent and it is openly feared that when new Japanese Ambassador presents his credentials Japanese troops will be occupying Peiping.

4. Despatch to the Department and Peiping.

For the Minister:
Atcheson