Foreign Relations of the United States, Diplomatic Papers, 1936, The Far East, Volume IV

793.94/8245: Telegram

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

Nanking, October 8, 1936—2 p.m.
[Received October 8—10:40 a.m.³⁴]

297. My 296, October 6, 4 p.m.

1. Interview between the Japanese Ambassador and General Chiang Kai Shek occurred October 8, 10 a.m. Results have not been ascertained. Social exchange of visits will take place between the British and Japanese Ambassadors this afternoon and between the British Ambassador and Chiang tomorrow.

2. An American news correspondent states that Suma this morning emphatically denied reports attributed to Chinese sources that the visit of the Japanese Ambassador this morning was purely social. He asserted that it was a “business interview”. Suma protested against nature of American press despatches which describe the present negotiations as mainly concerning “Japanese demands”. He stated that the only fundamental requirement of Japan is the eradication of the ungovernable causes of the recent outrages against Japanese and he minimized the so-called proposals.

3. Leighton Stuart, president of Yenching University, informs me that he has consulted extensively with Chinese intellectuals in this area during the last few days and had half hour discussion with Chiang Kai Shek yesterday. Stuart told Chiang Kai Shek yesterday he felt that if the National Government under Japanese pressure segregated North China there would be a strong movement there to declare independence on the ground that if the North is to be abandoned to Japan it can obtain the best terms eithers by resistance or by its own independent negotiations. Stuart expresses the belief that the most prevalent Chinese popular sentiment advocates resistance to. Japan on the ground that yielding would be more disastrous than even unsuccessful resistance. Another view, held by a minority whose typical representatives are bankers, advocates conciliation, for example, by regarding North China as differentiated from China in general though constituting an inseparable part of the country. This view envisages even the possibility that Manchuria might again coalesce with China in a similar status. The minority advocating conciliation of Japan are influenced by the belief that unless the hands of the civilian element in the Japanese Government are strengthened the imperialistic element among the younger military officers aided by profound economic discontent among the soldiers and the masses will seize control and bring about disaster possibly to both countries. Stuart says that Chiang is much harassed by proponents of these two policies in his entourage. Among his personal advisers his wife and W. H. Donald are strongly urging resistance and the other group is thought to include Chang Kia Ngau, former banker, present Minister of Railways, and Wu, Nanking manager of the Bank of China. Stuart inclines to the belief that a preliminary conference between Japanese and Chinese representatives yesterday agreed upon some forms of compromise.

4. London Times editorial released by Reuter’s and North China Daily News editorial yesterday have strongly pro-Chinese tone in the present controversy.

5. Sent to the Department and Peiping.

Peck

34. Telegram in three sections.