761.9411/18: Telegram

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

262. The Embassy has learned on good authority that the Japanese are now considering the conclusion of the nonaggression pact which the Soviets offered last December and which the Japanese, led by the military, then refused to consider. This change in mind is apparently due to altered financial and political circumstances in Japan and to the Japanese desire for Soviet recognition of Manchukuo, but the Soviet Embassy states confidentially that it will not consider the matter of recognition of Manchukuo in connection with the nonaggression pact, holding the two to be entirely separate questions. Morever, the Soviets do not intend to give quid pro quo, such as concessions in Siberia, for the conclusion of the pact. The Soviet Embassy expects the pact to be signed before the end of the year.

Repeated to Peiping by mail.

Grew