793.94/4617: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received March 7—4:45 p.m.]
Your 77, March 5, 9 p.m.61
1. I saw my British, French and Italian colleagues at noon today and I gave them in confidence the substance of Department’s instruction to me. My French, Italian colleagues have been authorized to participate in a conference but have no detailed instructions. My British colleague has had no instructions whatever. We are waiting upon events as it is not clear to us as to how negotiations between the two parties may be brought about. In the meantime Japanese continue to land troops, a large part of the 14th Division having landed within last 12 hours. Their position is described in telegram No. 164, March 7, 6 p.m., from American Consulate prepared by Captain Mayer.62
2. Matsuoka came to see me this morning. He expressed the hope that interested neutral powers might mediate. He is, I believe, seeing my French colleague this evening and will see my British colleague tomorrow morning.
He made it clear that neither he nor Shigemitsu had any influence with military leaders here and stated that military would not leave present occupied area until satisfied that objects of expedition have been accomplished to wit: Chinese troops must not enter evacuated area, and some satisfactory arrangement must be arrived at which [Page 527] will promise security to Japanese nationals living within area now occupied by Japanese troops. Matsuoka intimated that arrangements for area to be policed by Chinese after Japanese evacuation would not be satisfactory to Japanese military. He thought that a satisfactory arrangement would be to have area policed or at least supervised by the police of the International Settlement or by the international military forces here. He stated that this would of course be temporary as more permanent arrangements would be settled at a round-table conference. I informed Matsuoka that I did not think the United States Government would take kindly to any proposal which might run counter to our known policy in regard to the future status of the International Settlement. Matsuoka insisted that his suggestions were for temporary arrangements to take care of area evacuated by Japanese troops and should be distinguished from permanent arrangements which should be left for a round-table conference if and when held.
3. The Japanese are going to make a distinct bid for foreign support through the prospect of extension of Settlement. My British colleague is personally not in sympathy with any plan for Settlement extension. French Minister informs me that he does not care to have anything to do with the policing of Nantao or areas adjacent to French Concession if this is suggested by Japanese. There is a considerable body of opinion however among local British and American business residents in favor of taking advantage of present situation for the purpose of obtaining extension of Settlement area. British Minister is already experiencing such pressure and I also expect it. See Shanghai’s 156, March 4, 1 p.m.
4. Chinese will be opposed to any proposal contemplating extension of Settlement.
5. Japanese are in military occupation now and I am convinced that they will not give up this occupation until they have obtained favorable terms from the Chinese Government which I believe will include some measure of foreign supervision of administration in evacuated areas adjacent to Settlement. Powers interested in International Settlement of Shanghai and in the trade of Yangtze Valley will be faced with difficult questions, for a prolonged Japanese occupation must naturally give to Japanese dominant position both as regards the Settlement and the commerce in the valley. Attitude of Japanese military seems to be that as the Chinese withdrew under pressure the Japanese are under no obligations to withdraw from 20-kilometer zone.