793.94/6889: Telegram
The Consul General at Shanghai (Cunningham) to the Secretary of State
[Received March 1—7:11 a.m.]
97. 1. The North China Daily News today publishes article to the effect that Japanese proposals for rapprochement with China had been made. Essential part of article is quoted below.
2. “Authoritative circles, both foreign and Chinese, had heard reports to this effect yesterday and, in spite of denials of any special policy towards China given out in Tokyo, believed them. It was also reported that, subject to the conversations to be held between Major General Doihara and the leaders of the Southwest, at [a] time limit for China’s compliance with the organ [Japanese] terms had been set. Summarized the terms were [are],
- (1)
- Complete elimination of anti-Japanese propaganda from all text books used in Chinese schools.
- (2)
- Engagement of Japanese advisers by the National Economic Council.
- (3)
- Financial arrangement for the funding of all or part of the unrecognized loans to China such as the Nishihara loans.
- (4)
- Substitution of Japanese for the German military advisers [and instructors] now employed by the Nanking Government, and,
- (5)
- In return a loan to be floated in Japan to assist China in her present [urgent] financial necessities.”
3. The authorities placed time limit of acceptance between 6 and 9 months. Spokesman of Japanese Legation stated in denial that “so far as I know there have been absolutely no concrete proposals made either by ourselves or by the Chinese. We have discussed matters upon which we disagreed. We have said ‘this should be put right—and this’, and we have talked over how it should be done. And we now believe that each side clearly sees the other’s position and that we can see what to do about it.
The only thing that seems to be true in these reports is our stand about anti-Japanese propaganda.”
As to the advisability of eliminating anti-Japanese propaganda from text books, he continued:
“We would not dream of trying to make the Chinese change their history. What we have endeavored to rectify is the anti-national teaching—the teaching that fosters or creates hatred against the Japanese nation. If this hatred is to persist there will never be the friendship between Japan and China that is necessary here for both nations.
So far as loans go I can assure you that there has never been any official talk of a loan by Japan to China. Dr. Wang Chung-hui in [Page 67] Tokyo is not discussing any such thing and it has not been officially considered by us here. There are plenty of things to be cleared up before we can begin talking about loans. In fact I understand that three [the] Chinese bankers actually don’t want a loan. They say that it is not needed at present.”
In regard to world-wide rumors as to Japan’s desire to dominate China he continued:
“We are convinced that mutual relations with China mean the restoration of confidence in this country. With confidence returned China can set herself to really constructive work and that means enlarged business opportunities for all. Talk of Japan wanting to shut the ‘open door’ in China is simply ludicrous.”
4. Lieutenant Colonel Kagesa, Assistant Japanese Military Attaché, stated that the suggestion that Japan had made any demands or conditions that would be [as regards] the employment of foreign advisers by the Chinese executive departments [Army] was, however, miscorrect [a misconception] and continued:
“In his recent conversations with General Chiang Kai-shek, General Suzuki, our Military Attaché, pointed out that the employment of foreign advisers to the exclusion of Japanese [might be looked upon as discriminatory]. He urged that Japan should be given equal opportunity with other powers to provide advisers.
He also directed General Chiang’s attention to the fact that the maneuvers carried out occasionally by the Chinese Army seemed to be directed against Japan as a potential enemy. He said that this might be interpreted in an unfriendly light and suggested that in view of the better relations between the two countries the system should be modified.
General Suzuki at no time made any ‘demands’. He simply suggested to General Chiang that certain things might be misinterpreted by Japan and that in the interest[s] of all concerned these possible cases [causes] of friction should be remedied.
Also no demands were made by General Doihara during his visit to Nanking.”
Repeated to Legation.