793.94/8179: Telegram

The Counselor of Embassy in China (Peck) to the Secretary of State

281. My 280, September 25, 10 a.m.13

1.
Conveyed informally at reception given by Kung for the British Ambassador, Senior Vice Minister Hsu Mo told an officer of the British Embassy and me that at the first conference between the Minister of Foreign Affairs and the Japanese Ambassador held September 15th the Ambassador outlined proposals for fundamental settlement of Sino-Japanese difficulties; at second conference held September 16 the Chinese Minister for Foreign Affairs directed conversation mainly to China’s proposals for settlement of the Chengtu incident and such settlement was of pressing importance; at the third conference held September 23 the Chinese Minister for Foreign Affairs gave China’s proposals for fundamental settlement of Sino-Japanese difficulties. Hsu Mo complained that the Japanese Ambassador had consistently refused to accelerate settlement of the murders on [of?] Japanese territory [nationals?] and he hinted that that settlement was being deliberately obstructed in order that they may be utilized as alleged unredressed grievances as excuse for reprisals if China definitely rejects Japanese terms for fundamental solution. He said the Chinese Government was ready and eager to settle these incidents in accordance with international law. Before I could verify from Hsu Mo the truth of current reports that Japanese proposals relate principally to economic cooperation and what would amount to practical alienation of five northern provinces, Suma, Secretary of the Japanese Embassy, arrived and rather ostentatiously held Hsu Mo in private conversation until both of them left the reception. Kung privately confirmed both reports and added that economic cooperation on lines proposed by the Japanese would result in excluding other nations from China. Both Hsu Mo and Kung were very guarded regarding exact nature of the discussions.
2.
To the Department and Peiping.
Peck
  1. Not printed.