740.0011 Pacific War/3379: Telegram
The Chargé in China (Atcheson) to the Secretary of State
[Received 4:34 p.m.]
1435. The latest report of Japanese peace maneuvers is (a) that a Chinese, so far identified only by surname Liu, came here from Shanghai a week ago with a proposal that if the Generalissimo would consent to discussing peace terms, the Japanese as an earnest would withdraw from Canton and vicinity and (b) the Generalissimo replied that he would not give consideration to the proposal unless the Japanese should also withdraw from Hankow and vicinity. This story comes to us through a very reliable channel from an authoritative source. For that reason, we give it some credence and also because it is not improbable that the Japanese, in the light of developments in Europe and Southwest Pacific, may be seriously exploring ways to resolve the “China incident” by political means and that they have endeavored to lay ground work therefore by their so-called “soft policy” toward [Nanking].
The last most recent report of Japanese peace proposals was connected with Wu Kai-hsien who is now said to have returned to Nanking (Embassy’s airgram A–28, August 4).9 According to our informant the Generalissimo, while having no thought of making any kind of peace with Japanese, sometimes gives the appearance of not being unreceptive to such proposals because the fact that they are made to him gives him, against the background of the generally deteriorating [Page 87] situation here, a sense of power. We are inclined to give credence to this explanation. We consider the matter of interest chiefly because it may offer a sidelight upon the possible lines of thought which circumstances [are?] impelling Japanese leaders to follow.