783.94119/644: Telegram
The Consul at Shanghai (Butrick) to the Secretary of State
[Received June 28—4:53 p.m.]
An informant whose contacts should enable him to obtain accurate information from Chinese official sources on this subject states that the peace terms recently offered by the Japanese to the Chinese embraced the following principal points:
(1) The independence of Manchukuo; (2) right of Japanese to develop mining in North China; (3) participation of Japanese in railway development in North China; (4) withdrawal of all Japanese troops from China within 6 months; (5) Wang Ching Wei and Wang Keh Min to be included in National Government; (6) all Japanese supported currencies to be withdrawn within 3 years within which period these notes to be accepted at par by Chinese banks and finally to be amortized by Japan.
Informant states these terms submitted to Chinese about 5 weeks ago and that Chiang Kai Shek desired to accept but was prevented by Eighth Route Army group who refused to consider any terms except complete and unconditional withdrawal of all Japanese military forces from China and Manchukuo.
Sent to Chungking. Repeated to the Department and Peiping. Code text by air mail to Tokyo.