761.9411/70: Telegram
The Ambassador in the Soviet Union (Steinhardt) to the Secretary of State
[Received December 22—12:45 a.m.]
1764. My 1577, November 19, 1 p.m.2 The source indicated in my telegram under reference states that he understands that the Soviet [Page 679] Government is still prepared to conclude an agreement with the Japanese provided the Soviet conditions relating to territorial questions are met by the Japanese and that consequently such an agreement depends upon the willingness of the Japanese Government to pay the price. In this connection he added that he believed that the Konoye Government, for reasons of foreign policy, would be willing to meet the Russian terms but feared that the popular reaction to the cession of territory would be so strong that the Government might not be able to maintain itself in power. For this reason the final decision of the Japanese could not be forecast.
Members of the Japanese Embassy here are extremely reticent in regard to the negotiations but the fact that they are continuing is in itself of significance.