793.94119/401: Telegram

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

129. T. V. Soong arrived in Hankow about February 23. On February 26 he talked with McHugh and sent me confidentially a message which he thought would interest our Government. Following is synopsis of this information: Cora, the Italian Ambassador, accompanied by Ito the “unofficial Japanese Ambassador” arrived in Hong Kong just before Soong left and brought greetings and presents to him from Ciano76 which led Soong to think that Mussolini and Ciano sanctioned the visit. The Ambassador said he had come to talk about peace terms and that his position was different from that taken by the German Ambassador in December because he would convey only such terms as he personally believed to be a reasonable basis for negotiation. The terms outlined by Cora were described by him as “very lenient” and were roughly as follows: (1) China shall recognize Manchukuo; (2) Japan shall station garrisons in North China; (3) Japan shall have economic privileges in the same area; (4) a neutral zone shall be established in the Shanghai area but Japan shall not demand a Japanese concession; (5) an indemnity shall be paid. Soong inquired of Cora which nation should receive the indemnity and whether the intention was for Japan to indemnify China for the destruction of Nanking and the bombing of Shanghai. Cora answered that after every war an indemnity always had to be paid and that naturally Japan expected something. Soong said he tried to be tactful with the Italian Ambassador because he hoped that friendly relations might be restored eventually and also was very careful with Ito “because unofficial representatives are always the most dangerous”. Soong commented to McHugh that the terms described above were more moderate than earlier ones and he felt they showed that Japan wished to end the hostilities as soon as possible but that China would go on fighting because there was no possible solution of the present crisis.

Soong said that shortly before Cora’s visit a representative of Matsui had called on him and had promised “very easy terms” if he [Page 111] would discuss peace. Soong thought the approach had been made to him because the Japanese thought him trustworthy and possessed of enough influence both within and outside of China to enable him to speak authoritatively. This was the end of the message.

In informal conversation Soong expressed doubt whether the Chamberlain Government in Great Britain as reorganized would last long and said that any close association between Great Britain and Germany and Italy was “unnatural”; that a durable policy could be based only on complete understanding with the United States and that as long as the present British Government remains in power this would be impossible. McHugh inquired whether it was possible that Great Britain might veer toward Japan in the present struggle in order, for example, to preserve the integrity of the customs. Soong thought this possible and that the Japanese had ceased to await friendly overtures from the British and were taking the initiative in cultivating the British.

Repeated to Peiping. Peiping please repeat to Tokyo.

Johnson
  1. Count Galeazzo Ciano di Cortellazzo, Italian Minister for Foreign Affairs.