Foreign Relations of the United States Diplomatic Papers, 1940, The Far East, Volume IV

793.94119/622: Telegram

The Consul General at Shanghai (Gauss) to the Secretary of State

Shanghai, January 17, 1940—7 p.m.
[Received January 17—6 p.m.]

51. Activities of Wang Ching Wei.

According to a news release by Wang’s news agency, Wang yesterday despatched telegram to Chiang Kai-shek referring to efforts during past year of Wang group and Japanese to bring about settlement Sino-Japanese difficulties and effect peace, stating: “Fortunately, both sides, having in mind the future prosperity of East Asia, have been willing to make concessions and so have arrived at a mutual understanding. The foundations of peace have been laid, and China will secure terms which not only will not lead to national extinction but will also preserve her independence and freedom and enable the reconstruction of the nation on the basis of the San Min Chu I (Three People’s Principles) to be completed.”

Wang therefore desired to present his views for Chiang’s consideration. He held that there was no hope for victory through long term resistance, that the people of the country want peace, and that both the Chinese and Japanese desire that Japanese troops be withdrawn from China as soon as possible; “if you, however, continue to advocate armed resistance, how can evacuation (of troops) be talked about? War should be stopped now,” he said, “where the task of restoring national strength would be the lighter, rather than after the vitality of the people has been further drained away by continued warfare.”

Wang stated in conclusion that he would continue with his efforts to effect peace despite any opposition from Chiang, adding that: “If, however, you, putting the face of the nation and the livelihood of the people before all other considerations, would make a bold decision to end a futile war and to negotiate an honorable peace with Japan on the basis of the Konoye declaration,³² then it will be possible for myself and all the comrades to join with you in a united endeavour to secure the early and concrete realization of a nation-wide peace. In short, the fate and fortune of the state and the nation depend on this decision on your part. All the powers of the Chungking government are centralized in your hands. To make peace or to continue to fight can be decided by one word from you. The responsibility laid upon you is very heavy; so is the hope placed in you very earnest and eager.”

It was reported in a press despatch from Tokyo on January 9 that the agreement to which Wang referred bore the following points.

(1) Recognition by Wang’s Government of Manchukuo;

(2) Signature of Anti-Comintern Pact between Wang’s régime, Japan and Manchukuo;

(3) Japanese troops to be stationed in North China and inner Mongolia under anti-Comintern defense agreement;

(4) Joint exploitation of China’s natural resources;

(5) Pledge by Japan to withdraw troops from South and Central China within 2 years from implementing peace agreement;

(6) “Nationalization” of China’s railroads.

That agreement is said to have been carried out by the Japanese Cabinet on January 8.

Announcement of the agreement was followed by report of fleeing from Shanghai to Hong Kong of three important Wang followers, Chen Kung Po, Kao Tsung Wu, Tao Hsi Sheng. Another prominent supporter, Ku Meng Yu, was reported to have visited Chungking. The Wang camp has known that any movements [agreements?] such as reported have been with the approval of Wang himself, but it is reported here that some disagreement in fact exists among the Wang supporters. The disagreement is said to be primarily over two unpublished peace terms, one requiring Chinese recognition of Nishihara loans³³ totaling with interest approximately 1 billion yen (considered by some of Wang’s serfs [adherents?] to constitute a disguised war indemnity), the other reputedly envisaging issue of new currency and suspension of service of customs loans. It is reported that the peace terms have been submitted to Chiang. It is presumed that Chiang’s reaction to the present démarche will depend partly upon (1) the present condition of cooperation between the Kuomintang and the Chinese Communists and (2) Chungking’s estimate of the significance of the establishment of the Yonai³⁴ Cabinet and of Wang’s chances for success in connection with his present program for the establishment of a new central régime.

It is currently reported here that conference of representatives of the Japanese-supported Chinese groups is to open at Tsingtao before the end of January for the purpose of making preparations for the establishment of a new central political council, “which is the first stage of the formation and organization of the new Central Government.”

Repeated to Chungking, Peiping, cipher text by air mail to Tokyo.

Gauss

32. Statement of December 22, 1938, Foreign Relations, Japan, 1931–1941, vol. i, p. 482.
33. Japanese loans negotiated in 1918 at Peking by Kamezo Nishihara.
34. Adm. Mitsumasa Yonai became Japanese Prime Minister on January 16.