793.94/9659: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received August 24—7:57 p.m.]
514. My 504, August 23, 11 p.m. Buck requests that the following message be communicated to the Secretary of the Treasury:
“August 24, 1937. Hu Shih, an intellectual leader and a member of the new war Senate, has seen me and states ‘until August 13 possibility peaceful settlement good and even on August 3 [13?] a peace delegate was sent by Chiang Kai-shek to see Kawagoe but interruption communication prevented a meeting before hostilities began. A peaceful settlement is still hopeful especially if England and the United States will assist and that Davidson neutral zone plan62 probably acceptable to China if at end of three months after cessation hostilities a peace conference between Japan and China is held to settle all outstanding questions. This would be the first step. The next would be to strive for non-aggression pact between Russia and Japan and perhaps later other Pacific countries. Peace is acceptable to the Generalissimo partly with the idea of conserving unity and strength of China to prevent possible internal chaos in case of defeat perhaps possible because of limited military equipment.’
Chen Li Fu, one of the new Cabinet members, stated to me this morning that perhaps we can look forward to the attainment of Sun Yat Sen’s prediction that the United States, Russia, and China can become the guardians of international peace.
[Page 468]Chinese opinion is that application of neutrality law would be discriminatory against China even if not so intended and that all China asks is a chance to fight for her life until peace seems possible. A sample survey made by me today shows that in Nanking one-fourth of 432 consecutive shops on two streets are closed which is indicative of effect of air raids on business.”