793.94/8185: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received September 28—4:20 a.m.]
517. Abend, New York Times representative, has just informed me confidentially that Japanese Ambassador has presented seven demands to the National Government which must be completely agreed to before any settlement can be effected of the Chengtu and other incidents. From a source he described as “unimpeachable” he has learned three of these demands. They are (1) establishment of an independent regime in North China to include Hopei, Shantung, Shansi, Chahar and Suiyuan over which the National Government will retain only nominal suzerainty; (2) stationing of Japanese troops with Chinese troops in all areas where Communist armies are active; (3) the placing of Japanese advisers in all departments and services of the National Government.
Abend also informed me that from recent interviews with Japanese Military and Naval Attachés he has gained the definite impression that these demands are in the nature of an ultimatum and that nonagreement will result in definite action by the Japanese. He states that a press telegram to his paper recounting the above has been passed by the Chinese press censor at Shanghai.
Repeated to Peiping and Nanking.