793.94/68492/6

Memorandum by the Chief of the Division of Far Eastern Affairs (Hornbeck)

The Chinese Minister informs me in confidence that he has a strictly confidential telegram from his Minister for Foreign Affairs which states in effect that reports published in American newspapers appear to be Japanese propaganda; that the Japanese press has published even more sensational predictions; that Japanese officials have not yet made a “concrete démarche” except a demand for complete suppression [Page 37] in China of anti-Japanese activities; that it is believed in China that proposals of importance may soon emanate from Tokyo; that the authorities in Nanking consider it advisable to obtain “Japan’s respect for Chinese territorial integrity pending settlement of the ‘Manchukuo’ question” and to avoid any concession which would involve a loss of sovereign rights.