793.94/10967: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received November 3—1:40 p.m.]
885. Admiral Yarnell in a personal letter has formulated following terms of settlement of Sino-Japanese hostilities which express [Page 655] my own idea of outcome that possibly might be achieved and would be acceptable to the United States:
A stable government in China is essential to the peace of the Far East.
The only government which has given China a condition of peace and stability in recent years is the present one.
Therefore it is essential that the present Government be retained in power and that the terms of settlement should not be such as to cause its overthrow.
In the settlement the territorial integrity of China should be respected.
Manchuria to be excluded from this territorial integrity and to be recognized by foreign nations (recognition by China should precede that of foreign nations and would in my opinion be necessary).
Japanese troops to withdraw from North China to Great Wall.
The terms of the Nine Power Treaty regarding freedom of opportunity for trade of all nations to be guaranteed.
Within 1 year from signing of agreement, if a stable government exists in China, (a) extraterritoriality to be renounced by all nations, (b) foreign troops to be withdrawn from Peiping, Tientsin and Shanghai, (c) International Settlement at Shanghai to be governed along lines similar to those now in existence in Hankow in British ex-concession.
I feel, however, that in the present temper of the Japanese and Chinese Governments no terms of peace are possible which would be acceptable to both.
Repeated to Tokyo, Peiping.