793.94/7059: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received June 16—4:45 p.m.]
283. A Chinese official has informed the Legation in confidence that four demands have been made by the Japanese military with regard to the Chahar incident, namely, (1) an apology; (2) punishment of official responsible for the incident; (3) withdrawal one of Sung Cheyuan’s divisions (believed to be in eastern Chahar); (4) promise of nonrecurrence of such an incident. The informant states that the Chinese have taken the following action: (1) a Chahar official is now on his way to apologize; (2) minor officials concerned will be dismissed; (3) the division will be withdrawn if another incident occurs; and (4) the fourth demand has been ignored. From this and other sources it is learned that there is reasonably good prospect that controversy will be adjusted but the matter has not yet been definitely concluded and has probably been referred to Hsinching by the Japanese military at Tientsin. The most important features of the demands as given above would seem to be the extent (as yet unknown) of the area which will be left without Chinese troops if withdrawal of the division in question takes place.
Although no new important developments have occurred in this [apparent omission], so far as can be ascertained, the situation continues unsettled as the departure of Ho Ying-chin leaves North China without a Central Government official of sufficient [prestige?] and caliber to deal with the Japanese and as the immediate intentions of the Japanese are still obscure. The situation has been helped somewhat by the absence of reports of disturbing statements being made by Japanese officers. One reason for this silence may be that they are awaiting action by Nanking with regard to their demands and the return to North China of Ho or some other responsible official. Both Chinese and Japanese are inclined to believe that Ho will not return in part because it is understood (according to his secretary) that Ho took his household goods with him.
Repeated to Nanking and Tokyo.