793.94/3154: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received December 10—2:50 p.m.]
1065. During a conversation yesterday with W. H. Donald, British adviser to Marshal Chang Hsueh-liang, Donald expressed the following views which were confirmed later by C. Walter Young, American author of recent works on Manchuria and now cooperating with Donald:
Apparently impending is a Japanese attack on Chinchow. Counselor Yano of the Japanese Legation has informed Marshal Chang that the only alternative is direct negotiations. No specific terms were mentioned by Yano, but he implied that Baron Shidehara would be prepared to negotiate even with the Young Marshal. The latter is not willing to do so without Nanking’s authorization, but he favors carrying on informal conversations in Peiping while keeping Nanking informed. Chang appears anxious for a solution with fair terms having due regard for existing treaties and the security of the economic position of Japan in Manchuria. It is Chang’s wish to defend the area immediately to the south of Chinchow, particularly Shanhaikwan, since Chinchow cannot itself be defended. T. V. Soong has promised in this connection that some troops soon would be moved from the south toward Tientsin, but the most pressing problem facing Chang at the moment appears to be the attitude of his old generals of the Fengtien clique who desire his resignation to enable them to “sell out” to the Japanese. However, Chang may disappoint them by defending the Chinchow area; this also would reassure the students and public in general, some of whom clamor for military action. In Peiping the student situation for the present is under control because of a program to enlist them in defense corps, with the aid of heads of educational institutions.
[Page 670]Chang’s views are shared now by Soong in regard to the necessity of fighting for defense of the last vestige of authority in the area of Chinchow. The negotiations of Nanking with the Japanese Minister Shigemitsu have failed on account of the refusal by the Japanese military to withdraw troops. The Government at Nanking never committed itself to the withdrawal of Chinese forces to Shanhaikwan. The grave financial embarrassment now facing the Chinese Government invites internal upheavals which the Japanese military evidently expect to help them in their desire for imposing severe terms.
Hostility to the inaction of the League is now resulting in a serious domestic crisis, particularly as students from Nanking, Peiping, and Shanghai are beginning to urge the military to fight in self-defense or are demanding the overthrow of the Nanking Government. Hope in the League is disappearing fast, and China, while grateful to you for your statement on the Shidehara promise as to Chinchow, is losing confidence that any outside assistance will obtain the withdrawal of Japanese troops. The authorities in Peiping now see but two alternatives remaining, either to fight or to yield to the Japanese demands.
Repeated to Nanking.