793.94/7204: Telegram

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

373. Reasons for continued disrespect of Japanese military with regard to Chinese “sincerity” were explained by Major Takahashi to American press correspondent as follows: (1) Chinese anti-Japanese boycott persists especially in the Yangtze Valley region, in part because China insists that name of country of origin be placed on imported goods and in part because Chinese are afraid of Kuomintang [Page 319] activities against them in case they buy Japanese goods; (2) Japanese goods do not receive the same administrative treatment by Chinese Customs as do other foreign made goods; and (3) anti-Japanese education still exists in Chinese schools. Takahashi said that if verbal representations could change the Chinese attitude the Japanese military would be gratified but if not, then pressure would have to be exerted.

2.
Japanese press also continues to report dissatisfaction of Japanese military. According to press statement of Japanese military headquarters at Tientsin various former anti-Japanese agitators of the Kuomintang are continuing their activities through the Chinese Chamber of Commerce and other organizations (this allegation has been categorically denied in a signed statement by an officer of the Chamber); the movements of Japanese military officers are being watched; and anti-Japanese education is still found in schools.
3.
The reason for the meeting at Hsinking July 17, of important Japanese military officers of North China and elsewhere is unknown. Takahashi claims that economic development in North China was not discussed. Local observers are inclined to believe it had some connection with recent enforced resignation of General Masaki at Tokyo.
4.
These continued references to the Kuomintang which has been eliminated from Hopei and which is weak elsewhere in North China indicates the Japanese are more or less attempting to bring about some compromise on the part of the Kuomintang in Central China in addition to understandings already arrived at as well as some understanding with Chiang Kai-shek. It is possible that increased Japanese activities in North China (where there seems to be considerable activity on the part of old Anfu clique officials) may be awaiting the outcome of pressure on the National Government and Chiang Kaishek. I am reliably informed that Chiang’s German advisers are leaving as their periods of engagement expire; that Chiang intends to stay at least one year in Szechuan having rented foreign mission houses; that he is having brought to Chengtu some heavy guns which could not be intended for the anti-communist campaign indicating that he is establishing himself in Chengtu for self-defense. (Reference Shanghai’s 404, July 17, 1 p.m.)
5.
Paralleling these developments are Japanese press reports that the Japanese wish to help Chiang in his campaign against Communists and “in any way possible” in regard to economic problems. The first step in such help would presumably be the appointment of Japanese advisers.

Repeated by mail to Nanking and Tokyo.

Johnson
  1. Telegram in two sections.