893.796/208: Telegram

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

206. Department telegram No. 58, July 9, 6 p.m. which was repeated to Legation.

1.
The competent Chinese officials in Nanking have consistently denied the existence of any secret clauses in the Tangku truce agreement although the stories concerning the agreement which have circulated have had a wide range, one even crediting the agreement [Page 802] with, having contained general provisions on which were based the Japanese program for a rapprochement and for economic cooperation begun in January last.23 It is my opinion from discussions among and by Chinese which I have heard that if the agreement contained any secret clauses those clauses concerned the restoration of through rail traffic between Peiping and Mukden, the restoration of postal facilities between Manchuria and China proper, the setting up of Chinese customs stations along the Great Wall and possibly the establishment of radio telephone communication between intraand extramural China and the establishment of a commercial aviation line between Mukden, Peiping and Hsinking.
2.
I am reliably informed that the Japanese have actually asked for the establishment of the commercial aviation service just mentioned but that they have not pressed for landing rights on the China coast for a direct air service from Japan [;] as [sic] it was found that such request would be made which, according to my information, caused the decision mentioned in my 85 April 29, 10 a.m., the Chinese hoping to forestall a probable Japanese request by deciding to refuse American or other foreign requests for landing rights.
3.
I am authoritatively informed the Chinese Ministry of Military Administration is planning the establishment of an airplane factory at Nanchang with Italian assistance and reliably informed that the funds therefor are to be allocated out of Italian Boxer indemnity remittances and that the machine tools and other mechanical equipment will come from Italy. I am also reliably informed that construction work on this project is being postponed for the time being because of a fear of Japanese objections.
Atcheson
  1. See also pp. 1633, passim.