893.0146/805: Telegram
The Ambassador in the United Kingdom (Kennedy) to the Secretary of State
[Received July 5—9:18 a.m.]
1987. The Foreign Office has informed me in strict confidence that the British reply to recent Japanese demands on this Government with which the Department is fully familiar is very nearly complete and will be cabled to Tokyo possibly today and certainly before the week is out. The three principal Japanese demands are (1) withdrawal of British troops at Shanghai, Tientsin and Peiping; (2) regarding Hong Kong and (3) British supplies going through Burma to the Chiang Kai Shek government. Subject to last minute changes the replies to these demands will be along the following lines:
1. The British will agree to withdraw their troops at Shanghai, Tientsin and Peiping on condition that the Italian troops are withdrawn and on the assumption that Japan will offer protection of British interests, lives and property, in the area where Japan exercises authority. The British will ask an assurance that Japan does not seek to alter the status and administration of the International Settlement except at Shanghai in consultation with the other parties concerned.
2. Reply to Japanese demands regarding Hong Kong states in general that Japanese requirements seem already to have been met by measures the British Government has taken.
3. Reply to Japanese demand for complete cessation of supplies into China across the Burma frontier seems in effect to be a complete refusal. According to a Foreign Office official, the proposed reply will be in the following sense:
It will be pointed out that the amount of these supplies in any case is not great and that the figures lend no support to the view that this traffic assures any very material contribution to the armed strength of China; war material of United Kingdom origin passing along this route is insignificant and it is a legitimate trade route which greatly contributes to the welfare of Burma and India. From the angle of neutrality China might demand that all British supplies to Japan be cut off if the British cut off the supplies to China by the Burma route. It is not of course the British Government’s intention to cut off the present supplies going to Japan. Therefore it cannot reasonably be expected that the supplies going along the Burma route to China should be stopped. The British Government does not [Page 388] share the view that closing of the Burma frontier is essential to terminate hostilities. This is not to say however that the British Government does not desire the hostilities between China and Japan to be terminated and Great Britain will be ready to make her due contribution to restoration in the Far East of normal conditions which are in the interest of everybody.