793.94119/400: Telegram
The Counselor of Embassy in China (Lockhart) to the Secretary of State
[Received February 27—7 a.m.]
136. At the instance of Wang Keh Min74 and with the knowledge and acquiescence of the military authorities, Dr. Leighton Stuart75 left Peiping yesterday via Shanghai for Hankow for the express purpose of seeking audience of Chiang Kai Shek on the subject of possible peace negotiations. On asking Dr. Stuart on what basis the Japanese would be willing to negotiate he said: (1) Suppression of anti-Japanese movements; (2) establishment of a good administrative area in North China (which I interpret to mean an independent government in the north such as now exists); (3) economic cooperation and (4) reparation. I remarked that this seemed to be substantially the basis submitted to the Chinese several weeks ago by the Japanese and which the Chinese rejected. Dr. Stuart said that Japanese military hope to be in occupation of the Lunghai Railway shortly and that after that occurs the Japanese will be willing to enter into a truce with Chiang Kai Shek not exceeding 4 weeks to allow time for preliminary peace negotiations to take form; that the Japanese would be willing to discuss peace terms with Chiang Kai Shek himself (which is contrary to repeated announcements from Tokyo) or a responsible representative or representatives. Dr. Stuart who is very close to some of the leaders in the Provisional Government stated also that the Japanese favor some sort of a plan for “internationalizing the Yangtze valley.” The term is vague but I believe it means the return of the Yangtze River (and perhaps the adjacent cities and countryside) to the status quo prevailing before the trouble began. Dr. Stuart further stated that the Japanese will not insist upon the withdrawal of Chiang Kai Shek from the present Government and that they would recognize that the British Government has a special sphere of influence in Kwangtung and Kwangsi and that similarly it would recognize that the Soviet Republic has a special sphere of influence in Kansu, Sinkiang and Ninghsia. I told Stuart that the Chinese would undoubtedly have some very pronounced views on these two points as well as on the others.
Dr. Stuart hopes at least to obtain from Chiang a statement of the basis on which Chiang would be willing to negotiate and having obtained such a statement it will be taken or communicated at once [Page 110] to Tokyo. I do not know whether the Japanese authorities at Tokyo have knowledge of Dr. Stuart’s mission.
Sent to Ambassador. Repeated to Tokyo.