Foreign Relations of the United States Diplomatic Papers, 1937, The Far East, Volume III

793.94/8965: Telegram

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

Peiping, July 24, 1937—4 p.m.
[Received July 24—11:35 a.m.]

290. Embassy’s 285, July 23, 7 p.m.

1. The military situation has altered since the above mentioned telegram was sent only in that further withdrawal of troops of the 37th Division has taken place. Four train loads of these troops have so far left Peiping on the Peiping-Hankow railway. Through traffic on Peiping-Hankow line has been partially restored.

2. A competent informant closely connected with the Kuominchun for many years has expressed in confidence to a member of my staff the views that: (a) Sung Che-yuan went no further in the agreement of July 19 than he believed would be acceptable to the National Government, (b) the Japanese will find themselves again obstructed by the local Chinese officials when they attempt to implement this agreement in accordance with the Japanese interpretation of its meaning, and (c) within a few months Japanese exasperation will again result in a clash, which may then take the form of real warfare, but meanwhile China will have become stronger militarily and financially. The informant does not believe that acceptance by the National Government of Sung’s solution of the situation will seriously weaken the power of Chiang Kai-shek or the National Government. He added that Sung had conferred with his military subordinates prior to approval of the agreement.

Repeated to Tokyo, Nanking.

Lockhart