793.94119/653: Telegram
The First Secretary of Embassy in China (Stanton) to the Secretary of State
[Received July 18—10:20 a.m.]
74. 1. During the course of a conversation yesterday with Mr. Hidaka, Counselor of Embassy and principal negotiator for General Abe in the Japanese-Wang negotiations, the following information was elicited.
2. Hidaka stated that the treaty being negotiated would set forth certain general principles based on the Konoye statement and intimated that the Japanese were endeavoring to formulate and word them with a view to possible future developments. He stated that [Page 403] the negotiations were proceeding “smoothly” but would not be concluded for another month or two. He confirmed that the signing of the treaty would mean formal recognition of the Wang regime but appeared to doubt whether the first ambassador to the “National Government” would be General Abe who, he said, was anxious to return to Japan “as soon as possible”. He also said he did not think the present Japanese Cabinet crisis would affect the present negotiations.
3. As regards the actual status of the Wang regime following the conclusion of the treaty, Hidaka stated that it would enjoy full sovereignty and independence. However, in reply to a question concerning the return of communications to, and the exercise of economic powers by the Nanking regime, he indicated that this would be gradual rather than immediate and would be contingent upon military necessity. He mentioned the question of the withdrawal of Japanese troops from China and said that “even if the Japanese should declare their intention to withdraw their troops, military necessity would in all probability preclude implementing this promise for a year or more.” When asked whether the Japanese intended to issue such a declaration he replied “I do not think so.” He stressed that much patience and confidence was essential on the part of both the Japanese and the Wang “government” and remarked that the latter must understand that “because of the present disturbed situation Japanese promises can only be implemented gradually.” It appeared from these remarks that the signing of the treaty would result in little change in Japanese occupied territory in Central China and that the actual authority of the “National Government” would not be appreciably increased in either political or commercial matters but would continue to be restricted by the Japanese military.
4. Questioned regarding the effect of the new treaty upon third power rights and interests, Hidaka said that no immediate change need be anticipated. He said he did not think the existing pass system governing the movement of persons and merchandise would be abolished forthwith and intimated that the restrictions, with some modifications, would probably remain in force for some time to come and would continue to be imposed by the Japanese authorities in pursuance of the Japanese thesis of military necessity which is being conveniently applied not only to foreign rights and interests but also to relations with “the National Government”.
Sent to the Department. Repeated to Chungking, Peiping and Shanghai. Code text by air mail to Tokyo.