761.94/1040: Telegram

The Ambassador in the Soviet Union (Davies) to the Secretary of State

107. 1. The following is a summary of a Tass communiqué published by Izvestiya today:

(a)
On April 4 the Soviet Government proposed to Tokyo the settlement of the list of problems outstanding between the two Governments including: the immediate return of a Soviet mail plane, four Soviet citizens and a cutter held in Manchuria and the release of two Soviet ships held in Japan; the immediate payment of the last installment on the Chinese Eastern Railway due March 23 last: the [Page 162] freeing and return to Japan of eight Japanese arrested by the Soviet authorities “in retaliation” for the Japanese detention of a Soviet schooner; the release of several Japanese vessels and their crews held by the Soviet authorities; the favorable consideration of Japanese petitions concerning Sakhalin concession; the reestablishment of parcel post service with Japan suspended on account of the detention of the above mentioned mail plane; and the continuance of the Japanese Consulate at Okha on Sakhalin Island.
(b)
The Japanese reply referred the Soviet Government to Hsin-king for the settlement of certain of the issues relating to Manchuria and requested as additional quid pro quo the immediate signature of the Fisheries Convention and the retention of the Japanese Consulates at Khabarovsk and Blagoveshchensk.
(c)
The Soviet Government on April 25 stated in reply that it had not included among its proposals any relating to basic policy but only such especially annoying ones as were susceptible of immediate solution; that the fisheries matter was not urgent and that the closing of the two Japanese Consulates above referred to was a matter of policy. While holding Japan ultimately responsible for the matters relating to Manchuria the Soviet Government then took them up at Hsinking and is now awaiting a definite reply from the Japanese Government before defining its views concerning Japanese requests relating to Sakhalin concessions.

2. It is apparent that the number of annoying incidents which have arisen between the two Governments during the last 3 months have been due in a large measure to retaliation, counter retaliation, and jockeying for position. None seems to be more grave than numerous incidents which have taken place in the past.

Davies