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Date and number

THE FAR EASTERN CRISIS

CHAPTER III: JULY 1-OCTOBER 15, 1936-Continued

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1936 Oct. 3

From the Consul at Hankow (tel.)

336

Chinese preparations for a possible conflict, and shipment of large consignments of silver to places of greater safety.

Oct. 3

To the Belgian Ambassador

337

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U. S. attitude with regard to the July 1 declaration of the "Manchoukuo" Minister for Foreign Affairs pertaining to extraterritorial rights enjoyed by foreign nationals.

From the Chargé in Japan (tel.)

Press report of an interview between the Chinese Ambassador and the Foreign Minister who emphasized the importance of the present negotiations for adjusting Sino-Japanese relations and expressed the conviction that Japan's true intentions would become known when Kawagoe meets Chiang.

To the Chargé in Japan (tel.)

Instructions for Ballentine to read to the Vice Foreign Minister a close paraphrase of a statement (text printed) expressing U. S. gratification that the Japanese Government desires to solve the Sino-Japanese problems by diplomacy.

From the Counselor of Embassy in China (tel.)

Two excerpts (texts printed) from a statement by the Chinese press reflecting the seriousness of the situation and the hope that a rupture in Sino-Japanese relations may be avoided.

(Footnote: Advice that statement was drafted by the Foreign Office and approved by Chiang, but was not issued officially for policy reasons.)

338

338

339

Oct. 5

(295)

From the Counselor of Embassy in China (tel.)
Arrival of Chiang in Nanking.

340

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From the Chargé in Japan (tel.)

340

Compliance with instructions in No. 128 of October 4; Foreign Office denial in the press that British or U. S. representations have been made regarding Chinese questions.

Oct.
(296)

6

341

Oct.

6

From the Counselor of Embassy in China (tel.)

Views of an official of the Executive Yuan regarding Sino-
Japanese relations and his hope that the Japanese would
moderate their demands realizing that China has been pushed
to the last extremity.

Memorandum by the Chief of the Division of Far Eastern Affairs
Conversation with the British Chargé, who read the report
of the British Ambassador's conversation of October 1 with
the Japanese Foreign Minister (summary printed) regarding
the Sino-Japanese situation, and who said his Government
felt "time for concerted action had not yet arrived."

To the Counselor of Embassy in China (tel.)

Suggestions for appropriate oral and confidential response to any question by responsible Chinese officials regarding U. S. attitude toward the Sino-Japanese situation.

From the Counselor of Embassy in China (tel.)

Advice of interview between Chiang and the Japanese Ambassador; and information from Leighton Stuart, president of Yenching University, who believes that the most prevalent Chinese popular sentiment advocates resistance to Japan, since yielding would be more disastrous than unsuccessful resistance.

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345

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XXXIV

Date and number

LIST OF PAPERS

THE FAR EASTERN CRISIS

CHAPTER III: JULY 1-OCTOBER 15, 1936-Continued

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From the Consul General at Shanghai (tel.)

346

Renewed and heavy exodus of Chinese from Hongkew and
Chapei districts.

346

From the First Secretary of Embassy in China (tel.)

Report that a tax on smuggled kerosene is being collected by a Japanese firm in Tientsin, paid to the Chairman of the Hopei-Chahar Political Council and the kerosene freely distributed in eastern Hopei and Chahar.

From the Ambassador in China (tel.)

Information concerning Japanese Ambassador's interview with Chiang, who gave assurance that China was willing to settle incidents in accordance with international law and spoke of other outstanding issues; reply to Foreign Minister's inquiry as to whether U. S. representations on the SinoJapanese situation had been made at Tokyo.

From the First Secretary of Embassy in China (tel.)

347

Oct.
(492)

Oct. 10

Oct. 14 (300)

Oct. 15 (778)

348

Indications that warlike activities may be renewed on the
Chahar-Suiyuan border.

349

Memorandum by the Chief of the Division of Far Eastern Affairs
of a Conversation With the French Ambassador
Exchange of information regarding developments following
informal contacts with the Japanese in an effort to promote a
peaceful solution in the Sino-Japanese situation.

From the Ambassador in China (tel.)

Conversation with Vice Minister for Foreign Affairs, who believes the Japanese military are committed to a program intended to place China under the complete control of Japan. From the Ambassador in China

Reasons, expressed by the Secretary of the German Embassy in Tokyo, why Japan is not ready for war at this time.

351

352

CHAPTER IV: OCTOBER 16-DECEMBER 31, 1936

1936 Oct. 16 (304)

From the Counselor of Embassy in China (tel.)

353

Government plans to move from Nanking if hostilities seem unavoidable.

Oct. 16 (2091)

From the Chargé in Japan

353

Observations regarding an improvement in Japanese-Soviet relations.

Oct. 17 (248)

356

Oct. 17 (308)

To the Ambassador in China (tel.)

Request for summary reports covering recent conversations in Nanking with representative persons, of whatever nationalities, and a detailed estimate of the present Sino-Japanese situation.

From the Counselor of Embassy in China (tel.)

Advice of expected renewal of negotiations between the Foreign Minister and the Japanese Ambassador, and of opinion of German military adviser that China would accept challenge should Japan attempt decisive campaign in Shanghai-Hangchow-Nanking area.

357

Date and

number

1936 Oct. 19 (507)

THE FAR EASTERN CRISIS

CHAPTER IV: OCTOBER 16-DECEMBER 31, 1936-Continued

Subject

From the Ambassador in China (tel.)

Page

357

Oct. 20 (309)

Oct. 21 (252)

Compliance with instructions in No. 248 of October 17 and opinion that China is prepared to meet Japanese force with force.

From the Counselor of Embassy in China (tel.)

Information from the Vice Foreign Minister that no agreement was reached in Foreign Minister's exchange of views October 19 with the Japanese Ambassador; evidence of lessened tension in Nanking.

To the Ambassador in China (tel.)

358

359

Request for information in regard to an Associated Press report that Japanese air routes have been established between several North China points and Japan.

From the Counselor of Embassy in China (tel.)

360

Oct. 22 (311)

Oct. 22 (510)

Oct. 23 (312)

Oct. 23 (514)

Oct. 23 (511)

Oct. 23 (512)

Oct. 24 (255)

Oct. 24 (314)

Further discussions between the Japanese Ambassador and the Foreign Minister devoted almost exclusively to the unacceptable Japanese proposal for joint cooperation against the Communist menace.

From the Ambassador in China (tel.)

Information that an air agreement has been signed and that the Huitang Company is being organized to deal with through air traffic.

From the Counselor of Embassy in China (tel.)

Press announcement that Chiang's journey to Sian October 22 was for the purpose of inspecting bandit suppression activities, but it is rumored that Chiang intends to negotiate terms leading to inclusion of Communist forces in the Chinese Army.

From the Ambassador in China (tel.)

From Shanghai: Reported annoyance of Japanese authorities with Chiang's military dispositions as not consonant with the peaceful settlement suggestions which are being discussed in the Sino-Japanese negotiations.

From the Ambassador in China (tel.)

From Nanking: Request for approval to transfer arms and equipment from the U. S. S. Guam to the Embassy for use in a possible emergency of civil disorder and shooting.

From the Ambassador in China (tel.)

From Nanking: Request for authorization to speak informally to the Chinese military authorities asking on behalf of American interests involved that purely commercial character of the Chinese National Aviation Corporation be preserved if hostilities begin.

Ambassador's approval of suggested action.

To the Ambassador in China (tel.)

360

362

362

363

363

364

Approval of transfer of arms and equipment as requested in No.511 of October 23, and instructions to take effective precautions against any publicity.

From the Counselor of Embassy in China (tel.)

364

War Minister's insistence that object of Chiang's journey to Sian was really bandit suppression and report that Chiang has been talking about war with Japan some weeks.

Date and number

1936 Oct. 27 (517)

Oct. 28 (315)

Oct. 28 (260)

Oct. 29 (2107)

THE FAR EASTERN CRISIS

CHAPTER IV: OCTOBER 16-DECEMBER 31, 1936-Continued

Subject

From the Ambassador in China (tel.)

Report that a life insurance monopoly is shortly to be established in "Manchoukuo," and recommendation that no action be taken unless the right of coexistence is denied to private companies.

From the Counselor of Embassy in China (tel.)

Foreign Office official's advice that no progress had been made in sixth conference, October 26, between Japanese Ambassador and Foreign Minister; and his fear that no agreement would be possible unless new instructions came from Japan.

To the Ambassador in China (tel.)

From the Chargé in Japan

Page

365

366

366

Instructions for action in the event of an actual crisis.

367

Observations concerning recent developments in the Chinese situation.

Oct. 30 (262)

To the Ambassador in China (tel.)

368

Concurrence with recommendation in No. 517 of October 27.

Oct. 30 (523)

From the Ambassador in China (tel.)

368

Continuation of smuggling and resultant tax loss by the
Chinese Government.

Oct. 30 (2113)

From the Chargé in Japan

369

Observations relative to a Kuokumin article which indicated that Japan has now abandoned the idea of a political arrangement with Great Britain for cooperation.

Oct. 31 (316)

From the Counselor of Embassy in China (tel.)

370

Information which was released to the press by the Foreign
Office relative to three protests lodged with the Japanese
Ambassador.

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Outline of reasoning upon which was based the Ambassador's
approval for informal representations to Chinese military
authorities noted in No. 512 of October 23.

From the Consul at Tsinan to the Ambassador in China
Conversation with General Han Fu-chu, who seemed to
believe that war is the only solution of the present crisis.
From the Counselor of Embassy in China (tel.)

Information regarding a conversation between Chiang Kai-
shek and Leighton Stuart, president of Yenching University,
relative to Sung's attitude toward Japanese aggressive plans.

From the Ambassador in China (tel.)

Appearance in the press of disturbing reports in regard to the
Chahar-Suiyuan situation.

From the Counselor of Embassy in China (tel.)

Little hope of agreement in seventh conference scheduled November 10 between the Foreign Minister and the Japanese Ambassador; report that Suma has said that Japan has not receded from any of its proposals and that no importance should be attached to current reports of China's preparedness to resist Japan by force.

371

372

373

373

Date and number

1936 Nov. 11 (326)

THE FAR EASTERN CRISIS

CHAPTER IV: OCTOBER 16-DECEMBER 31, 1936-Continued

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From the Counselor of Embassy in China (tel.)
Information from Japanese Embassy that while no specific
agreement was reached at the seventh conference, the view-
points of the two parties were perceptibly closer.

374

374

Nov. 12 (581)

Nov. 12 (328)

Nov. 12 (539)

Nov. 13 (545)

From the Consul General at Shanghai (tel.)

Cooperation of municipal police and Japanese authorities in investigation of the fatal shooting of a Japanese seaman, allegedly by a Chinese.

From the Counselor of Embassy in China (tel.)

Advice from press correspondent that Japanese are awaiting full report of the killing of the Japanese seaman and that at the recent conference the Chinese stated that for certain concessions they would consider restricted joint operation against Communists.

From the Ambassador in China (tel.)

Interference, by Sung's orders, with functioning of customs preventive service officers just outside Tientsin and reports of smuggling activities at Taku.

From the Ambassador in China (tel.)

375

375

376

Unconfirmed press report of an attack by pro-"Manchoukuo" forces on the Chahar-Suiyuan border.

Nov. 13 (2127)

From the Chargé in Japan

377

Belief of Chinese Counselor of Embassy that a Sino-Japanese war is inevitable. Comments on Japanese public opinion which evinces a calmer and less truculent attitude toward Chinese questions.

From the Ambassador in Italy (tel.)

378

From the Ambassador in China (tel.)

Nov. 16 (465)

Nov. 17 (551)

Nov. 18 (556)

Information regarding rumored alignment of Japan with Italy and the projected Italian recognition of "Manchoukuo" in exchange for Japanese recognition of Ethiopia.

From the Ambassador in China (tel.)

379

Confirmation of fighting reported in No. 545 of November 13, and attack by pro-"Manchoukuo" forces north of Taolin.

379

Advice from a member of the Naval Attaché's staff that press reports of fighting on Suiyuan-Chahar border are highly exaggerated.

Nov. 18 (482)

From the Consul General at Shanghai

380

Transmittal of detailed memorandum (excerpt printed) concerning the possible neutralization of Shanghai in the event of a Sino-Japanese conflict.

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Fighting by Chahar forces operating from Pailingmiao and
Mongol protest against the oppression of Suiyuan.

Nov. 25 (574)

From the Ambassador in China (tel.)

388

Press reports that counterattacks by Suiyuan forces threw back the Chahar irregulars along the Wuchuan-Kuyang front and that the National Government has directed Teh Wong to withdraw from Pailingmiao.

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