894.00/1080: Telegram
The Counselor of Embassy in China (Butrick) to the Secretary of State
[Received July 25—10:40 a.m.]
183. Stuart28 has been informed by his Chinese contacts who are high placed in Tuihmgal [local?] puppet régime that General Ugaki29 was considered for the position of Prime Minister when the new Japanese Cabinet was being formed but that the liberal element headed by Ugaki was not strong enough to obtain control of the Japanese [Page 531] Government and that Matsuoka was let out to give the Japanese Government greater “flexibility” in interpreting and acting up to its international commitments; that there is much dissension in Japan and that the present heavy scale military activities are at least in part designed to combat rising internal discord; that Germany probably urged Japan to conclude a pact with Russia because she felt she needed no military assistance against Russia and hoped that such a pact would cause Japan to move southward and become involved with the United States. From another reliable source Stuart learns that General Itagaki has had an altercation with War Minister Tojo over Itagaki’s transfer from Central China to Korea and that this transfer was caused by Itagaki’s endeavors to enter into negotiation with Chiang Kai-shek which came to the attention of Wang Ching-wei and caused him to complain to the Japanese Government.
All of the foregoing was voluntarily related to me by Stuart in my office this morning. He reiterated his belief that the United States can best serve its own interests and those of China and the liberals in Japan by strong assistance to China.
Sent to the Department. Repeated to Chungking. Code text airmail to Tokyo.