793.94/7372: Telegram
The Counselor of Embassy in China (Lockhart) to the Secretary of State
[Received November 14—11:20 p.m.]
137. Embassy’s 133, November 12, 5 p.m., paragraph 3. In an interview printed in today’s press General Matsui (now described as a former member of the Japanese Supreme War Council) is quoted as expressing the belief that there will be no completely independent [Page 413] state in North China and that “the new Northern autonomous government” will probably be similar to that of Kwangtung. He expressed the view that it would enact and administer its own laws, employ its revenue for local developments, maintain its own army, have its own foreign affairs department and be otherwise self-sustaining while maintaining its connection with Nanking. The autonomous area would probably consist of Hopei and Chahar in the beginning, to be extended later to the other three Northern provinces. Regarding the currency to be used Matsui gave it as his opinion that the legal tender of China would be the currency of the North China autonomous government although it might be discovered necessary to issue a new currency paralleling that of the National Government banks. He further states that China under present conditions would better be divided under several autonomous governments as a “federation of Chinese states” under a national regime to facilitate regional development until such time as the Central Government is better organized. Matsui also said that Japan would be forced to use its armed forces to meet any communist advance either down from Monastir [sic] or from Northwest China into North China proper. He expressed opposition to the giving of Japanese military assistance to stabilize the situation in China or to aid the establishment of autonomous government and stated Japan should in a dignified manner take any action necessary to accomplish the general end of liberating the Chinese people from oppression.
General Matsui emphasized that he spoke as a private citizen (he has retired from the Army and is said to be travelling in a private capacity).
General[s] Matsui and Doihara are expected in Peiping today.
Repeated to Nanking and mail to Tokyo.