793.94119/577: Telegram
The Counselor of Embassy in China (Lockhart) to the Secretary of State
[Received September 2—8 a.m.]
471. Chungking’s 515, August 30, 9 a.m. A well-known American prominently identified with educational institutions at Peiping who recently returned from Chungking called on me (at the instance, I am firmly convinced, of either Wang Keh Min, a Chinese of importance just outside the fringe of the Provisional Government or probably of both) and stated that he had been reliably informed by what he described as “pro-American Chinese” that the British and Japanese were now negotiating either for a renewal of the Anglo-Japanese alliance or for a new agreement which might vitally affect the interests of the Chinese Government. It was strongly hinted that some sort of a peace move might be one of the desiderata connected with consultations [over?] the negotiations and that the Chinese feared the new alignment may so complicate the situation in Far East that the Russians might attack the Japanese through Manchuria and attempt to occupy Korea; informant stated the Chinese do not relish the possibility of the Russians coming into such close proximity to North China; that Chinese refugees have just arrived in Peiping from the region of Nomonhan with reports of severe fighting and heavy Japanese losses; that the belief is growing among the Chinese that a conflict between Russia and Japan is inevitable; that the British Government will approach the American Government with reference to the former’s desire to [for?] an understanding with Japan and that this will envisage the possibility of advancing peace proposals in which case it is the Chinese desire that the American Government avail itself of the opportunity to let it be known that the first and paramount consideration of any peace negotiation must be an undertaking on the part of the Japanese to withdraw all troops from China. My informant stated that Wang Keh Min would be prepared to support a peace move which contains an undertaking of this kind and in return would favor a recognition in some form of Japan’s special position in North China. Informant further stated that Chinese with whom he had been in touch are convinced that the new Japanese Cabinet will endeavor to placate the American, British, and French Governments [Page 226] and that if before deciding the British or Japanese should make approaches to the American Government the opportunity should not be lost to bring about [agreement?] which would compel the Japanese to withdraw their troops from China. It was not explained just what formula the Chinese had in mind to [bring?] this about, but I inferred that they felt that the Japanese, having suddenly found themselves divested of the moral, if not the material, support of Germany, would be more responsive than heretofore to meeting the suggestions of the United States, especially since the political structure in Japan has recently received a severe shock and there is what appears to be a genuine desire in some quarters to end hostilities in China.
Chungking’s 515, August 30, 9 a.m. had not been received when the above conversation took place. It is significant that Chinese in both Chungking and Peiping appear convinced that the British and Japanese may be on the verge of composing their differences.
Repeated to Chungking and Shanghai. Code text to Tokyo by air mail.