793.94/9237: Telegram

The Ambassador in China (Johnson) to the Secretary of State

380. Embassy’s 374, August 5, 1 p.m.

1.
It is reliably reported but not confirmed that conversations as to possibility of peace have been secretly proceeding in Shanghai between [Page 349] General Kita, Japanese Military Attaché, and Hsiung Shi Hui, Kiangsi Chairman. The story is that Konoye sent Saionji’s67 grandson to China about 2 weeks ago to approach T. V. Soong in the matter; Soong came to Nanking to talk with the Generalissimo and Hsiung was delegated to talk with Kita. According to this report, the Japanese terms as suggested by Kita are not too onerous and chiefly concern so-called economic collaboration in the north (mining rights, the Tientsin-Shihkiachuang railway, et cetera) without any emphasis on the political implications in the Japanese economic program and not requiring recognition of Manchukuo. Whether or not an ostensibly economic settlement would be sufficiently face saving for the Chinese Government’s continuance in authority is a matter for conjecture. That mandatory aims are definitely much wider in scope seems indicated by Mei’s despatch dated Tokyo August 5 reporting a [repetition?] by Hirota of the point concerning communism in his 3-point program and Hirota’s saying to the Diet that “the major point of our proposals to China consists of cooperation in joint defense against Communism” and that “side by side with military operations in North the Japanese Government is conducting negotiations with Nanking to secure the latter’s reconsideration of its stand.”
2.
According to observers who are interested in furthering the intellectual’s scheme for peace described in Embassy’s telegram under reference, the conferences being held here between Chiang Kai-shek and regional leaders are not so much for discussion of defense measures as for the purpose of giving Chiang opportunity to win over the leaders such as Pai Chung Hsi to the peace plan. One Government official denies this.

Sent to the Department, Tokyo. Code texts to Peiping, Shanghai.

Johnson
  1. Prince Kimmochi Saionji, surviving “Elder Statesman” (Genro) of Japan.