have made at the last conference with Mr. Arita the following contentions based upon his most recent instructions from Moscow: 1. That the border disputes commission should extend its jurisdiction, as early as possible, to the entire Soviet-"Manchukuo" border from the eastern frontier. 2. That the proposed commission deal with all border incidents dating from the Chingchangkou affair of January 20. 3. That Japan and "Manchukuo" should operate as a single responsible unit in the proposed commission. Thus it will be observed, by reference to a recent despatch on the subject, that the Soviets have made a slight concession on point 1 mentioned above in that instead of holding out for the establishment of the dispute settlement commission within two months after the establishment of the commission dealing only with the eastern frontier, the Soviet Government wishes that the commission be established "as early as possible" afterward. With regard to points 2 and 3 above, there has been no concession. Furthermore, if the reports are correct, the Soviet contentions have been reduced from the six points mentioned in the despatch under reference, to only three. In conclusion it may therefore be observed that Japan must look for a period of considerable uncertainty in her relations with Soviet Russia in the near future and that Mr. Hirota's policy of settling the outstanding issues between the two countries one by one will suffer at least temporarily due to resentment and retaliation on the part of Moscow because of Japan's new liaison with Germany. Respectfully yours, E. R. DICKOVER 793.94/8462 The Ambassador in China (Johnson) to the Secretary of State No. 879 PEIPING, November 27, 1936. [Received December 23.] SIR: I have the honor to submit, as of possible interest to the Department, the following comment on the subject of the expansion of Japanese activities as observed in the everyday life of Peiping. The number of Japanese soldiers which one sees appears to be the thing which most impresses foreign visitors to Peiping. The permament residents have, on the other hand, become so accustomed to seeing the north glacis of the Legation Quarter thronged with Japanese infantry and cavalry indulging in their daily exercises and maneuvers, that they almost fail to note how very many more Japa Embassy's despatch No. 2114, October 30, 1936. [Footnote in the original; despatch not printed.] nese soldiers are in evidence now than was the case two or even three years ago. Japanese troops are constantly on the march, usually to the accompaniment of shrill bugling, and one rarely walks along Legation Street, especially in the early morning or evening, without meeting a number of Japanese officers, often mounted, their orderlies trotting along behind on foot. It is a noticeable fact that Japanese officers are now more often seen on their mounts on the main streets outside of the Legation Quarter than was formerly the case. Officers' motor cars bearing the flag of the Rising Sun are much in evidence and it is a daily occurrence to see Chinese coolies dragging truck loads of military supplies from the Chien Men Station to the barracks of the Japanese Guard. There are several officers' messes in the Legation Quarter situated outside of the Japanese Embassy compound. One is in the former Chinese-Eastern Railway Building. (See Embassy's despatch No. 3130 [3530], April 23, 1935 70). Others are situated in the Ewo Building (Jardine Matheson & Company) on Legation Street, the ex-Belgian Bank Building and several houses in the Customs Compound on Rue Marco Polo. The influx of Japanese has created a shortage of houses in Peiping. In many of the hutungs, especially those east of Hatamen Street, one observes a profusion of Japanese flags. Japanese flags have been observed flying over small farms east and particularly to the south of the Chinese city in the direction of Nan Yuan. Recently a Japanese interested in producing cotton in the province of Hopei called at the Embassy in regard to a certain farm in this district which he had been informed belonged to an American citizen. He stated that he was very anxious to rent the property in question for the purpose of cotton cultivation. On Morrison and Hatamen Streets, and in the environs thereof, as I have previously reported, numerous Japanese shops and cafes have opened, not to mention Korean opium dens and brothels. The Japanese civilians are quite as much in evidence as the military and not only frequent their own cafes and hotels but also the larger hotels such as the Grand Hotel de Pekin, the Wagons-Lits Hotel and the Hotel du Nord. There has been a noticeable increase in the number of civilians and tourists traveling on the trains arriving in and departing from Peiping, and the First Secretary of the Japanese Embassy in Peiping informed a member of my staff that he is kept constantly on the go entertaining important visitors from his homeland, business delegations and numerous other Japanese who flock here for reasons ranging from mere curiosity to search for investment opportunities. During T0 Not printed. the past summer a visitor to the Temple of Heaven, Summer Palace or any of the tourist landmarks would have encountered groups of Japanese school children here on conducted tours the itinerary of which as a rule included Manchuria, Jehol, and Peiping. As the Department is aware, the Japanese bus service now runs daily between Peiping and Jehol and the recently inaugurated airline (see Embassy's telegram No. 555, November 18, 12 noon ") between this city and points in "Manchukuo" will undoubtedly augment Japanese travel to and from North China, as will also the newly constructed streamlined trains which have been placed on the through service between Peiping and Mukden. These trains, of which there are three, were constructed by the South Manchuria Railway Company and are the latest in de luxe air conditioned equipment. The Japanese residents do not mingle freely in the community life of Peiping, presumably finding their own colony sufficient unto itself for social diversion and recreation. However, the men, at least, appear to enjoy the golf course at Pa Pao-shan where by far the predominating number of playing members are Japanese. This also is true of the Tientsin golf course. Respectfully yours, NELSON TRUSLER JOHNSON 893.00/13743: Telegram The Counselor of Embassy in China (Lockhart) to the Secretary of State PEIPING, November 28, 1936-noon. [Received November 28-7:05 a. m.] 577. Embassy's 572, November 24, 4 p. m. The Suiyuan situation has remained quiet since the capture of Pailingmiao, but both sides appear to be making preparations for future eventualities. The irregular forces at Shangtu are reported to have been reenforced. Chen Cheng, one of Nanking's most important generals, is reported to be proceeding from Taiyuan to Kweisui for an important conference with the military leaders there. The Military Attaché's office has been informed that three Nanking divisions have arrived in Suiyuan but have not yet proceeded to the front; and that six Suiyuan and Shansi divisions and two artillery regiments are stationed on the defense line running from Paotow east to Pingtichuan and south to Fengchen. Upon the occasion of the Tungchow ceremonies (see paragraph 2 of the Embassy's 572, November 24, 4 p. m.) the five-barred Republican flag was raised. Handbills were dropped from airplanes denouncing the Kuomintang rule and threatening Chiang Kai Shek with the fate which overtook Yuan Shih Kai 72 and Chang Hsun.73 A proclamation was issued on the same day over Yin Ju Keng's signature, castigating Communism, alleging that the Kuomintang is still allied with Communism, and calling for various reforms and economic reconstruction on the basis of local autonomy; a call was issued to the people of China to throw off the Kuomintang rule. By mail to Tokyo. LOCKHART 762.94/105: Telegram The Ambassador in China (Johnson) to the Secretary of State NANKING, November 30, 1936-noon. [Received November 30-8 a. m.] 335. The German Ambassador on November 27 called on the Chinese Minister for Foreign Affairs and an official communiqué announced that the Ambassador promised to apply to his Government for information desired by the Minister for Foreign Affairs concerning the German-Japanese anti-Communist agreement." The communiqué added that the attention of the Ambassador was drawn to the reaction on the Chinese people and to the fixed policy of the Chinese Government to rely on its own strength to suppress Communism. The Italian Ambassador will call on the Minister for Foreign Affairs November 30, 4 p. m. to discuss the recent Italian-Japanese agreement which press reports state relates to the recognition of the present status of Ethiopia and Manchuria. JOHNSON 865d.01/210: Telegram The Ambassador in Japan (Grew) to the Secretary of State TOKYO, November 30, 1936-2 p. m. [Received November 30-7:40 a. m.] 245. 1. No official announcement has yet been made in Tokyo in regard to the subject matter of the Italo-Japanese agreement now being negotiated but the spokesman of the Foreign Office has stated that the negotiations are not connected with the recently concluded German-Japanese anti-Comintern agreement. 2. From the best information available to the Embassy it appears that the Italo-Japanese agreement will contain trade clauses whereby "President of the Republic, 1912-16, and unsuccessful in his attempt to become Emperor. "Unsuccessful in July 1917 in his attempted restoration of the Manchu "See vol. I, pp. 390 ff. dynasty. Japan will obtain raw material concessions in Abyssinia; will provide for the de facto recognition by Japan of the Italian possession of Abyssinia by the reduction of the Japanese Legation there to a consular office and for the Italian de facto recognition of Manchukuo by the accrediting of consular officers to that country; and will provide for Italian technical and material assistance to Japanese aviation (the information in regard to aviation was obtained from an officer of the Italian Embassy and therefore may be considered as authentic). 3. I shall see the Italian Ambassador tomorrow and shall telegraph further information if obtained. GREW 765.94/33: Telegram The Ambassador in Japan (Grew) to the Secretary of State TOKYO, December 1, 1936-4 p. m. [Received December 1-9: 15 a. m.] 247. Embassy's 245, November 30, 2 p. m. 1. The Italian Ambassador this morning told me that the emphasis given by the press to the recent Italian-Japanese negotiations was due to the fact that they followed so closely the conclusion of the German-Japanese agreement and that this emphasis was out of proportion to the facts. He said that for at least a year Italy had desired to reopen her Consulate General in Mukden, closed since the great war, because most of the other great powers had such Consulates while Italy possesses a Consulate only in Harbin and that this arrangement had finally been made by the Japanese Government acting as intermediary with Manchukuo. Japan at the same time had sent a Consul to Abyssinia after a similar arrangement with the Italian Government. He said he knew nothing about any signed agreement. 2. The Ambassador said that commercial conversations were also proceeding in Rome between the Japanese Ambassador and the Italian Foreign Office but that he had not been kept informed of their progress and knew only what he had seen in the press. He said that so far as he himself was aware the question of Italian technical assistance to Japanese aviation had not arisen. (The information on this point contained in my No. 245 was received from his Naval Attaché.) 3. The Nichi Nichi this morning states that the Japanese Foreign Office is displeased with the intimations emanating from Rome that an Italian-Japanese political agreement is being negotiated. These intimations are blamed on excessive desire for propaganda on the part of the Italians. It appears that the Japanese authorities wish to avoid the implication that a German-Italian-Japanese Fascist bloc is being formed. GREW |