Office of the Historian

793.94/8216: Telegram

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

Nanking, October 3, 1936—noon.
[Received October 3—10:15 a.m.]

290. My 285, September 29, 2 p.m.

1.
I called on Vice Minister Hsu Mo this morning on a purely social matter and he took the opportunity to give me an extensive review of the discussions between the Japanese Ambassador and the Chinese Minister for Foreign Affairs differing slightly from my September 29, 2 p.m. He said proposals made by the Japanese Ambassador were (1) reorganization of the five northern provinces with arrangements for economic cooperation therein, (2) joint defense against Chinese communistic military activities, (3) convention for direct air communication between Japan and Shanghai, (4) Japanese advisers in many departments of the Chinese Government removing disparity [Page 334] between numbers of Japanese and advisers of other nationalities, (5) customs convention specifically lowering rates on certain items.
2.
The Chinese Minister for Foreign Affairs replied to the Japanese Ambassador that China was quite willing to effect economic cooperation with Japan but wished to begin with two economic conditions only, namely, Hopei and Chahar; suppression of Chinese Communist forces was a purely internal matter; China would be willing to conclude air convention on reciprocal basis recognizing China’s sovereignty; China has already one Japanese adviser but would be willing to engage more in purely technical but not political or military capacities; China has not adopted any reciprocating customs conventions but would be willing to revise the customs tariff with both increases and decreases and having regard to necessity for maintaining customs receipts.
3.
The Chinese Minister of Foreign Affairs then enumerated points which China regarded as requiring action by Japan if relations were to be improved. Briefly they were (1) elimination of the East Hopei autonomous regime, (2) Japanese cooperation in suppressing smuggling in North China, (3) cessation of indiscriminate flights by Japanese airplanes in disregard of China’s sovereignty, (4) revision or cancellation of the Shanghai and Tangku military arrangements of 1932 and 1933. The last interview on September 23 ended abruptly and in a strained atmosphere.
4.
The Vice Minister told me that substantially this outline had been sent to the Chinese Ambassador for communication to the Department of State but there was another matter he would be grateful to have me transmit. He said that the British Ambassador in Tokyo under instructions from his Government had called on the Japanese Minister for Foreign Affairs to urge moderation on the Japanese Government in what was currently regarded as a crisis in Sino-Japanese relations; the French Ambassador in Tokyo had received similar instructions. The Vice Minister wondered whether the American Government would be willing to take a like step through the American Chargé d’Affaires in Tokyo. He said that I might have heard a comment which he said is being made by many persons today, namely, that in reference to the present crisis Great Britain and the United States have interchanged positions as compared with their positions during a similar crisis in 1931 and 1932. I referred to newspaper reports that the British Ambassador in Tokyo had informed the Japanese Foreign Office that Great Britain was not intervening in the present discussions between China and Japan. The Vice Minister said that his information was that these newspaper reports were not true.
5.
I said that I would telegraph the purport of his remarks to the American Ambassador and to the Department.
6.
My telegram No. 287, October 1, 2 p.m., paragraph 1. The Vice Minister said the Chinese Government has no present intention to issue a statement. The two officials mentioned returned from Kuling yesterday. The director of the Asiatic Department will call on the Japanese Ambassador I presume today. The Vice Minister said General Chiang’s duties would require his early return to Nanking but the date was uncertain. Other sources state Chiang will return October 5th.
7.
Sent to the Department and Peiping.
Peck