Office of the Historian

893.102S/2196: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

Tokyo, August 19, 1940—noon.
[Received August 19—9:30 a.m.]

711. Department’s 314, August 18, 2 p.m. Shanghai Defense Sector.

1.
Representations were made this morning along the lines of the Department’s instructions in an oral approach as from me to the Minister for Foreign Affairs.
2.
The Foreign Office expressed gratification at our decision to postpone at least temporarily occupation of Sector B and stated that the Japanese Government shared the opinion that the matter under discussion would be susceptible of amicable and equitable settlement.
3.
The Foreign Office inquired whether the reference to the “discussions between the Japanese and American Governments” was meant to imply that the question was to become a matter for diplomatic discussions between the two governments or that discussions for settlement would continue to be held between the local representatives at Shanghai. The Foreign Office was informed in reply that in our opinion there was no intention whatever to interfere with the continued discussions for local settlement at Shanghai.
4.
The Foreign Office observed that according to the terms of the Defense Agreement of 1925 [1931?] Sector B was technically under the Shanghai Volunteer Corps and would remain so even after the withdrawal of the British troops; that therefore it would appear desirable to allow matters to rest as they are at present pending the outcome of future discussions.

Sent to the Department. Repeated to Shanghai. Shanghai please repeat to Chungking, Peiping, and the Commander in Chief. We also repeating to Shanghai the Department’s 314, August 18, 2 p.m.

Grew