893.20/671: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received May 26—7:50 a.m.]
265. Department’s 157, May 25, 3 p.m.45 Rumors regarding possible recall of the German advisers have been current in Hankow for some time and finally culminated in the reported reason for the visit of the German Ambassador46 to Hong Kong covered by my 244, May 10, 4 p.m.47 The German Ambassador has returned to Hankow and yesterday gave to the press a statement to the effect that the German Government had expressed a desire to the Chinese Government that the advisers should be allowed to cancel their contracts with the Chinese Government and return to Germany. German Ambassador is credited with having stated that this request was motivated by the consideration of neutrality. I have not asked German Ambassador for any explanation, but I believe move at this late date is result of pressure from Japan.
What action advisers will take remains to be seen. It is reported that General Von Falkenhausen, chief adviser, may seek to remain as guest of Generalissimo. I understand that German Ambassador opposed recall. Departure of advisers will have a depressing effect upon Chinese whom they have served well and loyally. I understand that Germany has also put a stop to sale of munitions. This may have greater effect than departure of advisers as I understand Japanese forces are evidently now making a determined effort to obtain control of Lunghai Railway and appear to be having considerable success. Chinese forces in retreat will break up into small guerrilla bands. Loss of Hankow seems only a question of time. Perhaps these developments involving failure of Chinese armies have helped to bring German Government to this action.