Chungking Investigates Rumors of Shansi Army Surrender

THE "MAGIC" BACKGROUND OF PEARL HARBOR

Louis J. Sheehan, Esquire Chiang regime were in sympathy with this movement and were negotiating secretly with authorities in Shanghai.

Tokyo learned that the Nationalist Chinese had been waiting anxiously for the outcome to Japanese-American negotiations; for there had even been rumors to the effect that Chiang Kai-shek himself would sign a reconciliation with Japan if the United States would but give the word. This statement, according to the Japanese, was attributed to the fact that the Chinese people had suffered through four years of war and were now faced with civil strife. Since the Japanese believed that the Chinese war could have but one ultimate victor, it was only natural for the Chinese to hope that Japan and America would successfully conclude negotiations and that peace between the two Oriental nations might be achieved.[1348]

On October 6, 1941 Tokyo compiled an analysis of a report on the internal conditions of the Chungking forces. This message sent to Washington revealed that Chungking winter offensive of the previous year had failed and that the fourth period of preparations for a spring offensive was underway. In lieu of an out and out frontal attack, it seemed that Chiang Kai-shek was following a special strategy of propaganda to create confusion behind the lines and to promote partisan warfare. According to Japanese reports, the entire front was divided into eleven sectional fronts. The Chungking army consisted of 292 divisions, 200 of these being under direct control of Chiang Kai-shek. Recent investigations by the Japanese army had revealed that of these divisions manpower and equipment had declined 70 to 80%. Special note was made of the deterioration of qualifications for officers based on an examination of 2,500 prisoners. The examination had revealed that 500 had never finished primary education and only 62 of the total were graduates of colleges.[1349]

The survey showed that 1,500,000 recruits were needed annually to replenish the 200 divisions of the first line. Japanese authorities appeared amazed that Chinese front line commanders should have been given false battle reports from Chiang's headquarters. As in many cases these leaders were told that the Japanese army had been damaged excessively. These reports were greatly exaggerated. The Japanese believed that Chinese officers were refusing to obey orders from Chiang Kai-shek. Of 16,200 prisoners who were asked why they were not satisfied with the war of resistance against Japan, it appears that the majority complained of pay difficulties while others believed that the longer they continued resisting Japan, the more susceptible to communism they would become. The fact that there had been an increase of forces surrendering to the Nanking regime only emphasized the fact that Chinese officers were undecided as to the merits of continuing the war of resistance.[1350]

564. Proposal for Four Power Drive Against Japan Is Rejected by Moscow

Another suggestion of the Chungking leader met defeat at the Kremlin when a scheme to use Anglo-American-Soviet meetings in Moscow for disrupting Japanese-Russian relations in order to turn all four nations against Japan was rejected. The Russian Ambassador, Alexander Smenovich Panyushkin, had objected to the publication of an editorial about to be published in a Chungking paper. This editorial had dealt with the promotion of the above-mentioned scheme, and after Ambassador Panyushkin pointed out that it too clearly portrayed the real situation between China and Russia, the article was never published.[1351]

565. Tokyo Analyzes China's Financial Crises

As Tokyo explained the Chinese economic situation on the bases of intelligence summaries in a dispatch to Washington on October 2, there was an urgent need for financial and eco-

[1348] III, 1056.
[1349] III, 1057.
[1350] III, 1058.
[1361] III, 1053.

[275]

nomic assistance to the Chungking government. Since expenditures were expected to reach 15,000,000,000, Japanese analysts predicted that 12,000,000,000 would have to be paid by the banks of China by printing additional tender. Considering the fact that Chinese banks were already expected to issue 5,000,000,000 over the sum currently in circulation, nothing but bankruptcy could possibly result within ten months unless foreign loans were obtained.

The purchase of bonds had not solved the situation, which had been growing steadily worse since April 1941; and as a result, by October 2, the Chiang regime was rapidly putting into effect the following:

(1) "The transference of the finances of the Chiang regime to the capital (this is to be carried out from October; thereafter, all expenses in the province will be met by revenue from the provinces only).

(2) "The collection by the Chungking Government of rice revenue and the payment in kind of rice revenue at the ratio of one yuan to one "sito". Half of the revenue will consist of the unhulled rice. This will go into effect from September 16.

(3) "Issuing of ryo shoku koken (regarding this, the Government will issue an order on September 4 with 30,000,000 goku of stored rice as a basis. The purchase is to be made in installments during a period of five years, 30% by means of legal tender and 70% by means of "koken").

(4) "The establishment of government monopolies, (Sales monopolies of tea, salt, wine, tobacco, sugar, and matches are being planned).

(5) Absorption of funds from Shanghai and Hongkong (the tendency at present is for funds to blow back from the interior)."[1352]

566. United States Representatives Arrive in Chungking to Solve Economic Problems

In support of these negotiations and in the interest of the financial and military position of Chungking, Major General John Magruder, head of the United States Army commission to China, and his party of six arrived in Hongkong from Manila October 5[1353] and flew to Chungking on October 9. Apparently there was a total of thirty representatives, of which thirteen, including British Finance Counselor Hall-Patch, and Special Envoy Chen Kuang-fu, had already arrived by mid-September in Hongkong where they were to be joined by Mr. Fox, the American Financial Adviser to Chiang Kai-shek, and were to meet with the currency delegation commission.

The advance party supposedly had completed arrangements for an observation tour of key industrial and military areas. It was scheduled that, following the tour, some members would remain in Chungking and others would be posted at various fronts for a considerable length of time to keep Chungking authorities advised of practical methods for meeting the critical situation faced by the Nationalist government. In preparation for any crisis these representatives would study military supply as well as Japanese army tactics. In addition, they would assist in improving Chinese air fields. Apparently, shortly after the American party reached Chungking, Russian representatives would also arrive in the Chinese capitol to discuss the possibility of a Japanese attack upon Russia.

Also, in order to discuss all points of the problem of military cooperation with British and American authorities, Chinese representatives were dispatched to the Philippines.[1354]

The presence of Henry Francis Grady, the United States Economic expert and presidential adviser at Hongkong, who on October 10, 1941 was returning to America, had indicated to the Japanese that the United States was investigating methods of obtaining raw materials for military purposes. At this time tungsten and hog bristles, among other materials, were being

[1352] III, 1054.
[1353] III, 1059.
[1354] III, 1060-1061.

[276]

THE "MAGIC" BACKGROUND OF PEARL HARBOR

delivered secretly to Hongkong by airplane as well as being transported along the Tumen Route. Apparently the United States was also planning to send large transport planes of four to seven ton capacity to increase such traffic.[1355]

567. U.S.S. President Coolidge Unloads Troops and Tanks at Unidentified Chinese Port

On October 8, 1941 a circular dispatch originating in Shanghai revealed that a member of the crew of the U.S.S. President Coolidge had stated that his ship had been convoyed by a cruiser and an armed tanker from Manila to an unidentified port in China where they unloaded 54 tanks and 2400 men. According to the Japanese report, local American naval authorities had banned the publication of this activity.

American ships sailing from the United States to Siberia were soon to be armed. Inquiries made by Japanese in Shanghai had divulged that each ship's armament would consist of four 14-centimetre guns and an armed guard crew of one officer and twenty four enlisted men.[1356]

568. Japan Believes American Loan Is Reason for Visit of United States Representatives

On October 9, 1941 Major Philip Cochran, an American representative, accompanied by Sir Otto Niemeyer, director of the Bank of England, arrived in Hongkong by clipper from Manila with three other members of the American military mission who were en route to Chungking.[1357]

According to another Japanese spy report, the purpose of at least one of the visiting American parties was to consider the loan of $200,000,000 to Chungking to bolster Chiang Kai-shek's finances. One group was also to investigate Chungking's financial situation and was to include an English and an American member, cognizant of international treaty policies, to service as financial advisors to the Generalissimo.[1358]

569. Japan Promotes the Establishment of Independent Mohammedan Area

A Peking dispatch on October 8, 1941 revealed that for three years the Nipponese had beer conniving with an influential Mohammedan leader, Ba Tei Ken, from the Kansu and Ninghc area, for the establishment of an armed and completely independent Mohammedan territory Contributions for this project in conjunction with the military authorities were garnered from interested patrons who made payment to Counsellor Watanabe, the Japanese representative in Nanking.[1359]

570. Japan Anticipates Peace on China Front

Having captured the Lunghai Railway and designated it as the border line between North and Central China, Japanese experts reported that by October 7, 1941 they had materially strengthened their control over North China. Not only had they created a greater dependency upon Japan, but by capturing Ting-Chou simultaneously with Changsha they had struck a profound blow to Chungking. With such progress being made, they were convinced that establishment of peace along the entire front was not far from realization. It was also agreed that there would be no withdrawal from the captured territories, as such a move would be giving Chungking material for propaganda.[1360]

[1355] III, 1062.
[1356] III, 1063.
[1357] III, 1064.
[1358] III, 1065.
[1359] III, 1066.
[1360] III, 1067.

[277] [278 blank]

THE "MAGIC" BACKGROUND OF PEARL HARBOR

PART C—JAPANESE DIPLOMATIC ACTIVITIES THROUGHOUT THE WORLD

(l) Japanese-Nanking Relations

In the months following the official recognition of the Peoples' Government by Germany and the Axis-controlled countries of Europe, Tokyo supervised a reorganization of the political and economic systems then in existence at Nanking.

571. New Bank Notes Pay Custom Taxes

Among the major problems confronting Nanking at this time were the stabilization of its currency and the payment of debts. As a means of partially alleviating this financial condition, on August 8, 1941, the Japanese Finance Bureau ordered that the payment of customs taxes on salt and sugar be made in new bank notes after September 1, 1941. Japan had been continually advocating such a measure; therefore it did not come as a surprise to Chinese officials and no objections were anticipated. In the meantime a committee made other decisions on the future currency policy to be maintained.[1361]

572. Nanking Clarifies Its Duties Toward China Concessions

At the same time that adjustments to the financial status were being effected, the Nanking government sought to clarify its political position in relation to China. On August 12, 1941, officials of the Nanking government requested that the Japanese Foreign Minister define more explicitly Nanking's duties toward Chinese concessions. From their current information the duties connected with the execution of concession policies appeared to be merely auxiliary and were to be performed by the officials in China. Under the rules and regulations of the East Asia Reconstruction Bureau which had been given to Ambassador Nabuyuki Abe, these auxiliary duties came under the supervision of the Japanese Prime Minister and therefore an attempt to interpret them in any but a traditional manner was not permissible.

However, now that the Peoples' Government had received official recognition, the authorities inquired whether Nanking's duties toward Chinese concessions were transferred to the cognizance of the Japanese Foreign Minister. If not, Nanking believed that the East Asia Reconstruction Bureau had been given too much authority in the interpretation of concession responsibilities. Yet, while Tokyo actually formulated Nanking's policies, for all outward appearances, the Peoples' Government appeared to arrive at a decision under is own initiative.[1362]

573. Ambassador Honda Asks to Retain His Present Status

Fearing that the various proposed plans for an overall reorganization of the Peoples' Government would effect his position as Japanese Ambassador to Nanking, Mr. Kumataro Honda requested that Tokyo authorities influence Wang to reconsider any tentative change in his present official status. Because of the close contact he maintained with the developing situation in southern China, Ambassador Honda believed that he would be of more immediate value to Nanking if allowed to remain on duty in China.

In transmitting the record of this conversation to Nanking on August 14, 1941, the Japanese official in Tokyo pointed out that Ambassador Honda would be difficult to replace in the Japanese government. Therefore, if Ambassador Honda could be used effectively in the revised administrational set-up of Nanking, it was requested that he not be transferred. At

[1361] III, 1068.
[1362] III, 1069.

[279]

the same time, however, Tokyo realized that if President Wang Ching-wei considered the matter past reconsideration, then Ambassador Honda was not to agitate for reinstatement through other sources.[1363]

The afternoon of August 14, 1941 President Wang stated his decision regarding Ambassador Honda's position by explaining that any change in the administrative system inevitably necessitated a transfer of certain Foreign Office officials. No one would be replaced until definite replies of acceptance were received from respective successors. However, it was definite that Ambassador Honda would be reclassified in accordance with the new policies set forth by the Peoples' Government.[1364]

574. Japanese Offices in Central China Received New Code

During these governmental changes in Japanese controlled China, it was particularly important that security precautions be strengthened and strictly enforced. In order to supply various Japanese offices in Central China with the new Yoo code, Secretary Nishida of the Japanese Embassy at Nanking sailed aboard the Yawata Maru from Kobe on August 18, 1941. After arriving at Shanghai where Japanese officials were to facilitate his passage through the customs inspection, Mr. Nishida planned to spend several days there explaining the use of the new code system to the telegraphic office.[1365]

575. Nanking Fears Interception of Its Messages by Chungking

Japanese awareness of the necessity for safeguarding their communications was further evidenced on August 20, 1941. Fearing that their defective code system increased the danger of Chungking's interception and decryption of messages, Nanking proposed that its use be discontinued between Tokyo and Nanking. Instead, all telegraphic communications were to be sent simply in the customary telegraphic systems.

Meanwhile, the Japanese Foreign Office and the Minister of Communications conferred on the settlement of all problems connected with the transmission of code messages.[1366]

576. Nanking Army Refuses to Interfere with Problem Concerning Custom Officials

A few days later, on August 22, 1941, a political problem, undoubtedly proving the necessity for this increased security consciousness involved the Peoples' Government at Nanking. Apparently, the Nanking army had been offered some voice in the personnel questions affecting Japanese custom officials. But the Nanking Army Headquarters wired the North China army that in view of the present international situation, it preferred to leave such problems to Foreign Office officials. Therefore, the army was not to establish any group within the Special Affairs organization for the purpose of supervising customs.

Regarding the appointment of customs authorities, Nanking did offer one suggestion. Relying on information previously obtained from Peking, an official of the Peoples' Government proposed the exchange of Itaro Ishii and Mr. Koyamada in their respective positions.[1367]

577. Japan Negotiates Peace Terms with Shansi Army

About this same time Japan was concerned with another situation in which the political and military aspects were greatly related. In the early summer of 1941 the Peoples' Government conducted negotiations for the surrender of the Shansi army and the transfer of its allegiance from Generalissimo Chiang Kai-shek's forces to those of Japan. However by

[1363] III, 1070.
[1364] III, 1071.
[1365] III, 1072.
[1366] III, 1073.
[1367] III, 1074.

[280]

THE "MAGIC" BACKGROUND OF PEARL HARBOR

August 22, 1941, preparations for the terms of the peace treaty were still largely in the preliminary stages.

Nevertheless, the Japanese official in Peking, Mr. K. Hayashi, informed Tokyo that Mr. Yen Hsi-shan, Chief of the Military Commission and head of the Shansi army wished to sign an agreement with Japanese forces without delay. To complete the many necessary details, Mr. Tuchida, Staff Officer of the Japanese First Army, had arrived in Enan in the Shansi Province on August 19, 1941 in order to confer with the Chief of Staff Tsukiyama. Mr. Yen Hsi-shan was particularly anxious to complete negotiations with Japan because his faction had already severed connections with the central military authorities, and as a result about 10,000 troops of the Southern China Army had invaded territory under his domain.[1368]

578. Nanking Requests a Military Allotment from Japan

To meet the growing requirements for a standing army of its own, Nanking realized it would be necessary to obtain funds for training and equipment. Japan originally proposed extending a yearly allotment to the newly organized National government. Since the Nanking government lacked both military establishments for the proper training of its officers and sufficient weapons, President Wang suggested that the allotment for 1941 be used chiefly in alleviating these military deficiencies.[1369] Therefore, Nanking requested a 50,000,000 yen loan to cover the supply of military equipment. Although Major General Sadaaki Kagesa, acting Japanese military adviser, reduced the proposed loan to 10,000,000 yen before submitting it to the Foreign office through the General Army, he was in favor of using the money in this manner.[1370]

579. Japanese Consul Generals in China to Meet in Conference

In view of these numerous developments affecting Japanese-occupied China, the Foreign Minister initiated preparations for a conference of the Japanese Consul-Generals in China. That a definite date might be set for the meeting, Shanghai wired Tokyo on August 26, 1941 for further information. Unless more urgent matters interfered, Shanghai further suggested that an intelligence meeting, to be held about September 20, supplement the conference of the Consul-Generals.[1371]

The following day Minister Shinero Kuro Hidaka informed the head of the East Asia Bureau that the business and intelligence meeting was tentatively scheduled, pending the approval of the directors, for September 24 through September 26, 1941, in Nanking. After discussing the advisability of this meeting with the China Affairs Board, the director of the East Asia Bureau was expected to communicate with Minister Hidaka.[1372]

580. Japan Freezes Foreign Currency in Chinese Reserve Bank

One of the chief problems existing between Japan and the sections of China under its control evolved from a Japanese order freezing foreign currency in the Chinese Reserve Bank. To exchange the frozen funds into special yen currency would necessarily affect the reserve holding in the Japanese National Treasury since it would mean Japan's making good any loss the Chinese suffered by it. Therefore, on August 30, 1941 Tokyo definitely stated that no action would be taken to rescind the freezing measure.

Nevertheless, the Japanese government realized that unless some of the conditions arising out of the freezing order were alleviated, the reserve bank's credit would suffer and its oper-

[1368] III, 1075.
[1369] III, 1076.
[1370] III, 1077.
[1371] III, 1078.
[1372] III, 1079.

[281]

ations might cease. Therefore, the officials of the Chinese Reserve Bank planned to confer on methods of relieving the situation.[1373] However, Japan was aware that the question could not be entirely settled by such a meeting since Tokyo officials desired to turn the problem into a situation advantageous to their own government. Furthermore on August 30, 1941 it was suggested that Nanking use this opportunity to force China to institute policies of exchange and loans which would increase its cooperation with, and dependency upon, Japan.[1374]

581. Shanghai Restrictions on Gasoline Impede Japanese Military Transportation

At the same time that it began strict enforcement of this freezing order against China, Japan was suffering under a similar measure imposed upon it by Shanghai officials. Before the order freezing Japanese assets and the passage of strict export rules had been put into effect at Shanghai, the Nanking Petroleum Guild purchased refined gasoline from the Shanghai Foreign Oil Dealers for distribution to Chinese and Japanese military officials and civilians. However, beginning August 28, 1941, the oil dealers prohibited the sale of Shanghai gasoline for redistribution to the interior with the result that Nanking's supply of petroleum was estimated to be sufficient for only one month.

Because this order impeded the transportation of principal commodities throughout occupied China, Nanking officials informed Tokyo on August 30, 1941 that in cooperation with military authorities, the Peoples' Government considered effecting counter-measures against Shanghai. In order to carry out such measures successfully, Nanking asked the Foreign Minister to inform the East Asia Development Company in central China regarding the existing situation.[1375]

582. Berlin Appoints German Officials in China

It was particularly important during this period of economic and political crisis that Japan reinforce its diplomatic relations with Germany. After Berlin's official recognition of Nanking, the German government and the Japanese Embassy conferred on the appointment of Germans to serve as honorary Chinese consuls and on the protection of German nationals in China. On September 1, 1941 the German Charge in Nanking informed Minister Hidaka of this discussion.[1376]

583. Shanghai Sets Date for Intelligence Meeting

With this steady progression of international affairs reaching a peak in September, Shanghai sent a dispatch to Tokyo on September 3, 1941 definitely scheduling a date for the Japanese intelligence meeting,[1377] which had been previously set for September 20, 1941.[1378] In order that the special intelligence official being sent from Moscow might attend, the meeting was to be held from September 29 to October 2, 1941.[1379]

A few days later on September 5, 1941, Mr. Hiroshi Hori sent word to Counselor Tashiro that the Consul Generals from Manchukuo, Tientsin, Peking, Hankow, Canton, Hongkong, Nanking and Shanghai would attend this intelligence meeting.[1380]

[1373] III, 1080.
[1374] III, 1081.
[1375] III, 1082.
[1376] III, 1083.
[1377] III, 1084.
[1378] III, 1078.
[1379] III, 1084.
[1380] III, 1085.

[282]

THE "MAGIC" BACKGROUND OF PEARL HARBOR

584. Japanese Official Observes Conditions in North China

In the meantime Mr. Chu Min-yi, Nanking's Minister of Foreign Affairs, stopped at several cities in occupied China, including Tientsin and Peking, in order to report on the existing conditions in northern China when he returned to Japan, where he was unofficially connected with the Embassy. While on this trip, Minister Chu Min-yi was scheduled to visit Commander Okamura and possibly Director Shiozawa. Therefore on September 4, 1941, Nanking requested that the military authorities and liaison officials of the East Asia Development Company be instructed to assist him.[1381]

585. Japan Seeks Ratification of Treaty with Shansi Army

With preparations underway for meetings to consolidate Japan's political hold over its positions in China, the agreement confirming the surrender and incorporation of the Shansi army into the Nanking puppet forces neared completion. Secret information forwarded from Mr. Sakuji Hayashi on September 5, 1941, revealed that in order to clarify the understanding and to have it ratified, representatives of the Japanese and Shansi forces were to confer on September 8, 1941. Colonel Tadeo Hongo of the North China army, leaving for Taigen on September 11, 1941, was scheduled to present the details of the agreement.[1382]

Shortly after this conference, a dispatch to Tokyo disclosed that Mr. Matsutaro Tanabe, Chief of the General Staff of the Japanese North China Army, Mr. Sigezaki and Mr. Tsukiyama, Staff officers of the Japanese First Army, Mr. Tsuchida, Mr. Hayashi and the Governor of the Shansi Province had assembled to discuss the final plans with Shansi army officials represented by Mr. Chao Chen-shou. But in spite of the efforts made to reach a satisfactory arrangement at that time, numerous problems requiring settlement by a specially designated committee of Japanese and Chinese experts prevented the signing of a definite treaty. Questions involving the Northwestern Business concern and the Do Ho Railway were pending. More important still was the request of the Shansi army to have their forces increased to approximately 300,000 or more men fully equipped with military supplies and with funds.[1383]

However, since Japan intended to use this Chinese army mainly for its political rather than its military significance, it was doubtful if the Shansi forces would ever be actually re-enforced. For Japanese purposes the value of the proposed treaty lay in the effect it would have on both Mr. Yu Hsueh Chung, Governor of the Hopeh Province and member of the military commission of the Nationalist government, and on Mr. Fu Tsuo I, Chairman of the Suiyuan Province and Commander of the 37th Chinese division. Tokyo further hoped that the surrender of the Shansi army and its adoption of Japanese policies would influence the Chinese traders who had financial interests in the Shansi Province.[1384]

In view of Japan's motives, Japanese officials requested that Mr. Yen Hsi-shan formally announce the break with Chungking and the signing of the armistice agreement with Japan. But until the Shansi army had been distributed into the various sections to unite with Japanese forces and until the problems of the Central and Eighth Route armies had been settled, Mr. Yen Hsi-shan refused to publicize the forthcoming treaty.[1385]

Although the terms of the final agreement had not been decided upon, the Nanking government on September 12, 1941 informed Tokyo that over 1,000,000 yuan would be disbursed to the Shansi army. If this force went to war with China, President Wang Ching-wei intended to grant Commander Yen Hsi-shan the position of Chairman of the Military Council and Vice-Chief of the Nanking government.[1386]

[1381] III, 1086.
[1382] III, 1087.
[1383] III, 1088.
[1384] Ibid.
[1385] Ibid.
[1386] III, 1089.

[283]

586. Japan Extends Loan for Central China Operations

As negotiations with the Shansi army achieved satisfactory results, Tokyo meanwhile became concerned with other operations in China. After studying the expenditures necessary for central China, on September 9, 1941, the Japanese government decided to extend a 30,000,000 yen loan. Funds were obtained from foreign loans and reparation moneys that had been accumulating in the six affiliated banks in northern China since March 30, 1941 when Japan established the National government in Nanking. Although definite conditions for drawing on these funds were to be decided for each separate case, the Yokohama Specie Bank was responsible for lending the money. That part of the foreign loan money which was accumulated through the Shanghai Maritime Customs was held in Chinese currency as a special reserve fund of the six banks.[1387]

587. Japanese Official Reviews Chinese Reserve Bank Problem

Because of the large amount of money used in the extension of its war with China and the distribution of loans to Japanese-subsidized China, the Tokyo government realized the necessity of maintaining financial stability. For that reason, the problems arising from the freezing of the foreign currency in the Chinese Reserve Bank were given careful consideration.[1388] The delay in the business dealings of their bank inconvenienced the completion of Japanese transactions as well. Therefore, on September 11, 1941, Mr. Kazaro Aoki, the economic adviser to the Japanese Embassy at Nanking, went to Shanghai in order to check the effectiveness and adaptability of the proposed settlement plans. The East Asia Development Bureau was kept informed of all developments.[1389]

588. Nanking Ambassador to Leave for Post in Germany

While Nanking's economic and military problems occupied much of Japan's attention during this period, its diplomatic affairs were not neglected. As a result of the international situation, and by an agreement with the British government, Japan dispatched the Asama Maru from Yokohama on September 20, 1941 to pick up Japanese evacuees from Europe. Since the ship stopped at Lisbon, Tokyo seized this opportunity to suggest that Mr. Li Sheng-wu, Nanking's newly-appointed Ambassador to Germany, and his official party take passage aboard this ship.[1390] But the Asama Maru was not scheduled to dock at Shanghai; therefore, on September 9, 1941, the Japanese government advised that the Nanking Ambassador be prepared to embark at an appointed port.[1391]

Certain complications arose when Japan realized that in order to reach their posts in Germany and Italy from the port at Lisbon, the Nanking officials must necessarily pass through countries which had not recognized this Japanese state. For that reason Nanking became concerned over the possible difficulty of securing the proper visas.[1392]

Mr. Li Sheng-wu was apparently not ready to leave Nanking at this time. Therefore, on September 12, 1941, Nanking wired Tokyo that only members of the Ambassador's staff would sail aboard the Asama Maru.[1393]

[1387] III, 1090.
[1388] III, 1080-1081.
[1389] III, 1091.
[1390] III, 1092-1093.
[1391] III, 1093.
[1392] III, 1094.
[1393] III. 1095.

[284]

THE "MAGIC" BACKGROUND OF PEARL HARBOR

589. Japan Concerned over Delay in Appointing Nanking Ambassador to Italy

Since these preparations were underway for sending the new Nanking Ambassador to Berlin, Mr. Yoshiro Ando, a counselor at the Japanese Embassy in Rome on September 12, 1941 called on Mr. Prunas, a member of the Italian Foreign Office, to inquire about Italy's delay in approving the appointment of a Nanking Ambassador. In reply Mr. Prunas blamed the numerous details relating to the establishment of the New Order in Europe. Furthermore, he assured Mr. Ando that the Italian government had no objections to such an appointment and would act on the matter immediately.[1394]

Apparently, however, no action had been taken by September 16, 1941; for on that date Nanking asked that Tokyo use its influence in procuring the necessary agreement with Rome in order that the new ambassador might sail with other officials of the People's Government aboard the Asama Maru.[1395]

The evening of September 17, 1941 the Japanese Foreign Office received a confidential report from the Italian government. Although the appointment was yet to be confirmed by the political council, Mr. Go Gai Sei[1396] would probably be named as Nanking Ambassador to Italy.[1397]

590. Berlin Appoints German Officials to Nanking

While Nanking arranged for the establishment of embassies in countries recognizing its government, the Axis nations reciprocated by sending diplomatic officials to Nanking. Since a regular German Ambassador could not be sent in the immediate future, on September 16, 1941, the Berlin government announced the appointment of Mr. Fischer as a German Charge d'Affaires.[1398] Although it was anticipated that a regular German Ambassador would not be stationed in Nanking for many months, on September 23, 1941, Tokyo disclosed that Mr. Henrich D. Stahmer expected to be given that position. In a discussion with Mr. Shun-ichi Kase, Mr. Stahmer stated that as soon as the necessary arrangements were effected, Berlin would publicize this decision.[1399]

591. Nanking Ambassador Delays Trip to Germany

Yet if Germany's official diplomatic relations with the Peoples' Government apparently progressed ahead of schedule, this did not hold true of Nanking's plans. Unforeseen circumstances forced the Nanking Ambassador to delay his own trip. Therefore, on September 25, 1941, Mr. Li Shen-wu informed Mr. M. Fischer, the German Charge d'Affaires, that for the time being a secretary was being sent to act in the capacity of commercial attache in Berlin.[1400]

However, in order to complete plans for the departure of other Nanking officials to Germany on September 25, 1941, Nanking asked to be kept informed of the Asama Maru's sailing schedule from Yokohama.[1401] By October 1, 1941, Nanking had completed the list of reservations that it desired to make aboard the ship. The diplomatic staff to be aboard included Minister Li and his daughter, Secretaries Tang and Feng accompanied by their families, and several other secretaries and attendants.[1402]

[1394] III, 1096.
[1395] III, 1097.
[1396] Kana Spelling.
[1397] III, 1098.
[1398] III, 1099.
[1399] III, 1100.
[1400] III, 1101.
[1401] III, 1102.
[1402] III, 1103.

[285]

592. President Wang Seeks Information on Japanese-American Relations

Although its activities were closely allied with and dependent upon these Axis-dominated countries, Nanking did not lose sight of the important effect that the Japanese-American situation would have on the Peoples' Government. For that reason when requested for an interview which would undoubtedly entail a discussion of these relations, President Wang asked Tokyo for advice regarding the attitude to be adopted. Mr. Wang recalled that Prime Minister Konoye had been pessimistic because of the unpromising turn in diplomacy. However, by the end of September, 1941, Mr. Wang hoped that subsequent developments had thrown a new light on the existing problems.

Particularly interesting to President Wang was the United States' stand on the Chinese incident. When interviewed, Mr. Wang insisted that his government did not object to United States' participation in a settlement of the Japanese-Chinese war providing that its peace proposals did not aim at the overthrow of Japan's New Order in East Asia.[1403]

593. Germany Appoints Pro-Japanese Diplomats in China

Meanwhile, Nanking-German diplomacy became increasingly favorable and by October 2, 1941, Berlin had chosen a new staff of pro-Japanese diplomats to serve in occupied China. As had been expected,[1404] Mr. Stahmer was appointed Ambassador to Nanking upon the personal recommendation of Chancellor Adolph Hitler who believed him capable of complete cooperation with Japan. Although engaged in diplomatic work since the establishment of the Ribbentrop office, the present appointment was Ambassador Stahmer's first as a foreign diplomat.

Because of his enthusiasm for the Tripartite alliance, Ambassador Stahmer was anxious to suppress the old type of German diplomat in China. However, certain officials believed that the type of German diplomacy previously characterizing relations with China was deep rooted and therefore would clash with the newly-appointed ambassador. Possibly for that reason, the German government chose other well-established officials to work with Ambassador Stahmer in administrating German affairs in Nanking. Mr. Erich Boltze, former counselor to the German Embassy in Tokyo, and Mr. Johannes Borchers, former Consul-General in New York, were transferred to the Embassy in China. Mr. M. Fischer became the German Consul-General in Shanghai.[1405]

594. Tokyo Arranges Reception for Nanking Officials Going Abroad

In order to raise the prestige of those Nanking officials reporting to their Embassies abroad, the Peoples' Government arranged with Tokyo on October 3, 1941 for a special reception to be given before the sailing of the Asama Maru.[1406]

Since the sailing schedule of the Asama Maru remained indefinite,[1407] the Japanese anticipated several days in which to continue instructing the Nanking staff on their duties in foreign countries.[1408]

595. Chungking Investigates Rumors of Shansi Army Surrender

Despite the efforts of the Shansi army to keep secret its peace negotiations with the Japanese forces, an intelligence report transmitted from Shanghai on October 13, 1941 revealed that the Chungking military committee was sending five spies to investigate the rumors that Commander Yen Hsi-shan had transferred his allegiance to the Nanking government. These spies were prepared to enter Nanking secretly by way of Hongkong and Shanghai.[1409] Louis J. Sheehan, Esquire

[1403] III, 1104.
[1404] III, 1100.
[1405] III, 1105.
[1406] III, 1106.
[1407] III, 1107.
[1408] III, 1106.
[1409] III, 1108.