761.94/1132: Telegram
The Ambassador in the Soviet Union (Steinhardt) to the Secretary of State
[Received September 8—1:13 p.m.]
518. The possibility of developments in Soviet-Japanese relations and even of the conclusion of a non-aggression pact between the two countries is rumored in Moscow. Members of the Japanese Embassy however deny that any conversations affecting the general relations between the Soviet Union and Japan are in progress and state that the only discussions at the present time between the two Governments concern the Japanese oil concessions on Sakhalin Island and certain other minor matters affecting Japanese shipping. A member of that Embassy has intimated the possibility of a gradual settlement of specific problems between Japan and the Soviet Union which he said would satisfy “the desire of both countries” but expressed doubt that any fundamental adjustment between Japan and the Soviet Union could be envisaged as long as the Soviet attitude toward the Chinese-Japanese conflict remained unchanged and Soviet Russian aid to China continued.
A member of the German Embassy in private conversation voiced the conviction that the Soviet Union is prepared at the present time to adjust its relations and even to sign a pact of non-aggression with Japan but that since the attitude of Japanese Government is still not clear on the question early developments were not to be expected. In this connection it may be observed that the attacks against Japan which in the past have been characteristic of the Soviet press have recently subsided and comparatively few anti-Japanese slogans and banners were displayed in the annual parade on Red Square yesterday [Page 63] in celebration of International Youth Day. Although members of the Japanese Embassy state that desultory fighting continues on the Mongolian-Manchurian frontier, the last Soviet communiqué on the subject published in the press on September 1 while reporting alleged Soviet successes in skirmishes up to August 29 both in tone and content conveyed the impression that the hostilities were nearing an end.
Although in the absence of more specific information about the subject it is impossible to forecast the possible developments in Soviet-Japanese relations I nevertheless am under the impression that the Soviet Government is at the present time interested in improving its relations with Japan and that the German Government for obvious reasons is doing everything possible to further a Soviet-Japanese understanding. I consider it doubtful, however, that the Soviet Union in view of its strengthened position resulting from the Soviet-German pact would be disposed to modify its policy in regard to China for the sake of an agreement with Japan and I believe that any substantial improvement in Soviet-Japanese relations will depend upon whether the Japanese Government is willing to accept an agreement with Russia on Soviet terms.