761.94/1314: Telegram
The Ambassador in the Soviet Union (Steinhardt) to the Secretary of State
[Received April 11—10:34 p.m.]
745. I asked Matsuoka this afternoon what progress he was making in his political negotiations with the Soviet Government. He replied [Page 938] that the Soviets are no longer asking for the cession of lower Sakhalin but are seeking the surrender of the Japanese concessions in northern Sakhalin for which they are prepared to pay compensation. He said that he rather feared the reaction in Japan to the surrender of these concessions and that he is therefore undecided as to what course to pursue. He concluded with the remark that in any event he will leave on 13th whether an agreement has been reached or not.
Repeated to Tokyo.