793.94/9193: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received 2:15 p.m.]
374. 1. We are reliably informed that a group of influential Chinese intellectual leaders have secretly initiated a movement for peace and are proposing to the Generalissimo that China offer to recognize Manchukuo in return for withdrawal of Japanese troops from North China. They claim to have the active support of Yen Hsi Shan49 and, working through some one in the Chinese Foreign Office, to be responsible for the journeying hither of Kawagoe.50
[Page 330]2. How far this movement may develop is impossible to say. However, it may be seen in an editorial in Kung’s Shanghai China Press this morning which approaches an argument for peace on the theory that Japanese terms now would not be as harsh as those which might be expected after an inevitable defeat and points out that China’s only hope of avoiding ultimate capitulation would be in wearing down the enemy by long drawn out guerrilla warfare which might break the enemy financially.
3. While we feel that the Chinese Government would eagerly seize upon almost any solution of the crisis with Japan which would not mean political suicide, the proposal cited seems impracticable because (1) it is too late and (2) Japanese desires have gone far beyond it and appear to be widening in reference to North China. A peaceful settlement does not therefore seem possible on that or any similar basis as the situation now stands.
4. According to a source close to Chiang Kai Shek, the Generalissimo’s headquarters do not now expect extensive hostilities before August 15, because it is considered that the Japanese are not yet fully prepared.
Sent to the Department, Tokyo.