793.94/6842: Telegram

The Chargé in China ( Gauss ) to the Secretary of State

40. Reference Peck’s telegrams to Department numbers 12, 13 and 14 of January 25, 5 p.m., January 26, noon, and January 26, 1 p.m., trustworthy Chinese sources of information at Peiping express conviction that Sino-Japanese negotiations are now in progress but not yet concluded for some sort of pact or understanding. One of these sources states definitely that the proposals included provisions for cooperation between China and Japan, noninterference of third parties in Sino-Japanese relations and in China’s internal affairs, Chinese territorial integrity, and a large loan from Japan to China.

2.
There is a suggestion that movement of Japanese naval vessels to South China is taking place in preparation for any necessary intimidation [Page 23] of the Southwest to suppress possible opposition to a Sino-Japanese pact. Legation is taking special care to verify this report.
3.
United Press report from Tokyo dated January 19 in Shanghai paper, which has just reached Legation, states that it is understood that “the Japanese Foreign Office is desirous, should a proper opportunity present itself, to conclude with China a treaty for preservation of territorial and administrative integrity”.
4.
Peck reports in despatch 578 of January 24 to Legation that Suma of Japanese Legation at Nanking informed foreign newspaper correspondent January 23, following long conversations with Chiang Kai-shek and Huang Fu, that Suma was trying to persuade Chinese leaders to formulate a Chinese policy toward Japan, that China was destined to work with Japan, and that, if China delayed too long in adapting herself to the workings of fate, some regrettable incident between the two nations would automatically result.

The Legation will continue its efforts to obtain information on this subject.

Legation is informing Tokyo briefly by telegraph and mailing copies of Nanking’s messages.

Gauss