703.04119/679: Telegram

The Ambassador in China (Johnson) to the Secretary of State

515. 1. During the course of an informal conversation yesterday afternoon the Vice Minister for Foreign Affairs informed an officer of the Embassy that there is no truth whatsoever in recent press and [other] reports to the effect that Madam Chiang Kai Shek has gone to Hong Kong to discuss peace terms. He said that Madam Chiang is in Hong Kong for medical treatment and that the Japanese have made no peace proposals to the Chinese Government. He went on to remark that the Generalissimo and other high officials of the Chinese Government now feel there is a growing recognition in the United States and Great Britain that China’s struggle is likely to have a vital effect on the future security of the two democratic powers and that the hostilities in the Far East are inseparably linked with [those] in Europe. China, therefore, is less receptive to peace overtures now than at any time since the commencement of hostilities, said Dr. Hsu.

2. It is safe to comment that Chinese morale is now higher than at any time since the start of the Sino-Japanese conflict. This phenomenon is, of course, attributable in the main to the apparent deterioration of American-Japanese relations the various manifestations of which the Chinese observe with delight and in a minor sense to the British decision to remove restrictions on shipments over the Burma Road.

Sent to the Department. Repeated to Peiping. Peiping please air mail code text to Tokyo.

Johnson