151 Sir Frederic Eggleston, Minister to China, to Department of External Affairs

Cablegram 20 CHUNGKING, 1 December 1941, 9.30 p.m.

MOST SECRET

Saw Minister for Foreign Affairs [1] and told him that according to information from Australia China had intervened to prevent so- called modus vivendi thus creating the impression in Australia that China wished the negotiations to fail. This might alienate American sympathies. Urged the continuance of the negotiations on the basis of China receiving a guarantee against the situation being altered to her detriment. The Minister for Foreign Affairs said China wished negotiations to continue but the proposed settlement, while preventing a north or south movement by Japan, would not prevent intensified attacks on China. It proposed relaxation of the blockade which, he considers, would be fatal.

Considered that the Japanese did not intend a fresh commitment and that America must remain firm and stick to the previously enunciated principles.

1 Dr Quo Tai-chi.

[AA : A981, JAPAN 178]