894.00/572: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

41. Embassy’s 39, February 26, 11 p.m.

1.
The deaths have now been confirmed of Premier Okada, Admiral Saito, General Watanabe and Finance Minister Takahashi, although Takahashi’s death has not been officially announced, probably to avoid disturbing financial circles. Admiral Suzuki is still alive although seriously wounded. Prince Saionji is safe.
2.
Martial law was proclaimed by Imperial Ordinance at 3 this morning embracing the entire City of Tokyo and commanded by General Kashii. It is indicated that the martial law will restrict traffic in certain areas and establish a strict censorship over newspapers, telegraphs and telephones in order to minimize misleading rumors and to calm the situation.
3.
None of the stock or commodity exchanges opened today. The banks are open but doing little business, the situation being still too [Page 724] nebulous. The yen rates are approximately normal, [being] held to normal by the pegging operations of the Yokohama Specie Bank. The death of Takahashi is expected by bankers to have an adverse effect on the market for Japanese bonds and may cause serious disturbances in the Japanese money market.
4.
The newspapers are permitted to publish only the meager official statements which are obviously designed to minimize the affair as much as possible. The foreign press correspondents are now able to send messages abroad but they expect that under martial law their telegrams will be strictly censored.
5.
According to the best information available to the Embassy, about half of the insurgent troops have returned to their barracks; the other half has been gradually evacuating the Government buildings occupied yesterday and has been concentrated in the Premier’s official residence. Martial law was proclaimed largely to enable the army to negotiate with the insurgents on an entirely legal basis without involving other interests. It is within the power of the General in command of the martial law area to order the arrest of the men who refuse to return to their commands but it is not likely that this will be done except as a last resort when all other methods fail. From the Premier’s residence the young officers who directed the uprising are negotiating with the present Government and the army authorities. Exact facts in regard to these negotiations are impossible to obtain but it is understood that at first the insurgents demanded a military dictatorship for Japan. This demand was immediately rejected by the Government (then meeting in Council at the Palace) which suggested Prince Konoye or General Araki as Premier. The insurgents recommended Admiral Kanji Kato or Baron Hiranuma. The negotiations are continuing and will probably result in a compromise Premier. General Araki, Prince Higashi Kuni and Admiral Eisuke Yamamoto, Supreme War Councilor[s], are being most prominently mentioned at the moment.
6.
No forceful measures are being taken nor, as far as the Embassy is aware, are being contemplated against the insurgent troops. It is explained that to arrest them would involve fighting in the heart of Tokyo and might result in the destruction of buildings and loss of life among the civilian population; that the use of force against political insurgents is opposed to Japanese custom; that no Japanese Army officer would order the Emperor’s soldiers to fire on other soldiers of the Emperor; that the fighting if it took place would be too close to the Palace of the Emperor; and that in any case there is considerable sympathy among the people for the motives which animated the misguided young men and consequently a certain amount of consideration must be shown them or the army will find itself possessed of a crowd of martyrs which must be avoided at almost any cost.
7.
The Embassy feels that until the present emergency situation is further clarified and settled there is not sufficient ground to justify diagnosis of the full import of the affair or conjecture as to its bearing on future policy.

Repeated to Peiping.

Grew
  1. Telegram in two sections.