793.9414/7: Telegram

The Second Secretary of Legation in China (Atcheson) to the Secretary of State

177. Department’s 171, June 18, 8 p.m. I have so far been unable to discover any foundation for the report. During a conversation recounted in my 174, June 21, 9 a.m., Hsu Mo mentioned that at no time during the Sino-Japanese discussions begun in January or since, or during those in connection with North China, had Japanese officials put forth any suggestion looking to the transfer to Japan of territory for naval bases or other purposes and I have heard similar comment by the Acting Minister of the Interior and others, including the head of the Political Affairs department of Chiang’s field headquarters who has been in Nanking during the crisis and who was Acting Minister of the Interior prior to March. I am continuing to investigate.

Despatched to the Department and Peiping.

Atcheson