793.94/6717

The Minister in China (Johnson) to the Secretary of State

Sir: I have the honor to enclose herewith a memorandum dated May 3, 1934,7 reporting a conversation between the American Minister and Dr. Wang Ching-wei, President of the Executive Yuan and Acting Minister for Foreign Affairs, and a memorandum dated May 4, 1934,7 of a conversation between the American Minister and Mr. Peng Shopei, Director of the Department of Political Affairs of the Executive Yuan, relating to the present controversy between the Chinese and Japanese Governments.

It is interesting to note that Dr. Wang Ching-wei stated, inter alia, that it had been decided in the conference recently held by him with General Chiang Kai-shek (at which Mr. Huang Fu8 was present) not to alter China’s present policy with regard to the question of postal service between China Proper and Manchuria, but that two possible methods of settlement of the question of through traffic on the Peiping-Mukden Railway had been discussed, the necessity of doing nothing which would prejudice the Chinese policy of non-recognition of the regime in Manchuria being constantly borne in mind. One of the alternative methods for conducting through railway traffic without prejudice to the idea of non-recognition of the regime in Manchuria, Dr. Wang [Page 174] said, was to give control of the traffic between Mukden and Peiping to some sort of travel agency.

I have the honor to state, as of incidental interest, that Mr. Y. Suma, Secretary of the Japanese Legation residing in Nanking, a few days ago informed an American newspaper representative that such a method of disposing of this problem would not meet with the approval of the Japanese Government.

Mr. Peng made the interesting statement that he thought the Japanese would present a number of demands in the near future, both to the Nanking and Peiping authorities.

In this relation, it may be observed that a number of rumors have reached this office to the effect that such demands have already been presented by the Japanese authorities, presumably representatives of the Kwantung Army, among them being the right to build a railway from Chengte, in Jehol, to Peiping; the right to build a railway from Kueihua, on the Peiping–Suiyuan Railway, to Taiyuanfu, capital of Shansi Province; the right of Japanese subjects to raise cotton in North China; the right of Japanese subjects to conduct mining operations in northern Shansi, etc. It has been impossible to find any official basis for these rumors.

Very respectfully yours,

For the American Minister:
Willys R. Peck

Counselor of Legation
  1. Not printed.
  2. Not printed.
  3. Chairman, Peiping Political Council.