693.04244/36: Telegram

The Counselor of Embassy in China (Peck) to the Secretary of State

159. Nanking’s 157, May 25, 5 p.m.

1.
Japanese news agency Domei from Nanking May 22nd [reports?] that Japanese Chargé from Shanghai had called on Foreign Minister and drawn attention to “unfavorable effect of Chinese allegations regarding Japan’s responsibility for smuggling situation upon Sino-Japanese relations”.
2.
I was today informed by Executive Yuan official that Japanese First Secretary (not Suma) had recently called at the Yuan and stated that “China would suffer” if Chinese Government continued to “mobilize world opinion against Japan” on account of smuggling. Informant stated that it now appeared that one Japanese objective which had emerged from their opportunist use of the smuggling situation to advance their general program, was the allocation to the jurisdiction of the Communications Committee of the Hopei–Chahar Council, of the northern sections of the Peiping–Hankow and Tientsin–Pukow Railways, with a view to alienating those sections from Nanking’s control.
3.
We have been informed that Foreign Office has ordered Suma to Tokyo to report on Chinese protests concerning smuggling. He left Nanking for Japan May 24. A few days previously an American news correspondent stated to him that the Japanese Government could easily stop the smuggling if it wished and he asked “why should we? What would there be in it for us?[”] Another American news correspondent was today informed by an officer of Japanese Embassy that Japan would not attempt to end the smuggling unless the situation in North China were “adjusted” in accordance with Japanese proposals.
4.
Repeated to the Department and Peiping, by mail to Tokyo.
Peck