793.94/14180: Telegram

The Consul General at Hankow (Josselyn) to the Secretary of State

9. In the Communist daily Hsin Hua Jih Pao yesterday and today Chou En Lai editorially stated that Japan now has demonstrated it [Page 334] has a new policy of expansion [of] the area of hostilities in China in an effort to cut external and internal communications, isolate and demoralize Chinese resistance and bring the conflict to an early end. He anticipates Japanese occupation of all of the Canton–Hankow and Pinghan lines and Lunghai to Sian.

The Japanese decision to extend hostilities to South China, Chou declared, came largely as a result of the exhibition of British and French attitude in the Czech crisis. He believed Japan hopes Britain and France will in an attempt to salvage their interest in Far East bring pressure on China to sacrifice herself through capitulation. The application of the Chamberlain policy was a failure in Europe, Chou maintains, and it is definitely not applicable to the Far East because, firstly, China will not compromise with Japan and, secondly, because interests are more patently affected in Far East than [they] were in Central Europe.

In the face of the expanding Japanese invasion, Chou calls for unwavering and protracted resistance, preparation for counter offensive when the Japanese are fully extended, further development of guerilla operations to rear of Japanese and organization of the people for total warfare. China must convince the world, he declared, that her defensive war is being fought with confidence in an ultimate victory and that it will not be suspended before that victory.

Josselyn