793.94/11387: Telegram

The Second Secretary of Embassy in China (Atcheson) to the Secretary of State

978. 1. We are confidentially informed by reliable competent source that German Ambassador is expected here shortly to discuss Japanese peace proposals which include Chinese (1) declaration of independence Outer [Inner?] Mongolia, (2) participation in Anti-Comintern Pact, (3) agreement to stop anti-Japanese propaganda, and on Japanese side resumption of status quo in North China as regards Japanese troops. I report this for what it may be worth. Our source states that it is second definite Japanese attempt to initiate peace discussions and that these proposals do not come from the Japanese military.

2. My German colleague has told me in confidence that Japanese some time ago asked Germany to propose to China that China initiate peace discussions but German Government refused because the Japanese would not reveal what terms would be acceptable to Japan.

3. Repeated to Hankow, Shainghai, Peiping. Peiping please repeat to Tokyo.