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The troops loyal to the Government are in complete control of Tokyo.

There is no chance whatever that Masaki will become Prime Minister.

It is now believed in Tokyo that Prince Konoye, President of the House of Peers, will become Prime Minister.

Litvinov said that from the point of view of the Soviet Union the whole situation looked brighter than yesterday as it now seemed unlikely that an extreme militarist could become Prime Minister.

Dr. Yen, Chinese Ambassador, expressed the opinion to me that increased pressure on China was not to be expected for several weeks. BULLITT

894.00/578: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

TOKYO, February 28, 1936-6 p. m. [Received February 28-7:50 a. m.]

45. Embassy's 44, February 28, noon.

1. The day has passed with many conflicting rumors but without armed combat. Obviously the diplomatic and other foreign communities have exhibited much anxiety during the day but present indications point to a relaxation of the tension.

2. I have just been informed by a responsible official of the Foreign Office that the Commander of the First Division approached the insurgents this afternoon with an order that they obey the commands of the Emperor. The insurgents thereupon agreed to obey the Emperor's commands and to return to their barracks but are negotiating as to when and under what conditions they will return. The flag of the insurgents still flies over the official residence of the Prime Minister and the loyal troops still occupy strategic positions throughout the area around the residence.

3. Censorship on news despatches abroad was relaxed during the morning and foreign correspondents were able to talk freely by international telephone. This privilege was rescinded this afternoon and it is not known when free foreign communication will again be permitted.

4. The death of Finance Minister Takahashi on the 26th has now been officially announced. As yet there has been little perceptible effect in financial circles, as the stock and bond markets are closed, but the newspapers report that there have been heavy withdrawals from deposits in banks throughout the country.

5. One light cruiser and eight destroyers from Yokosuka tied up at Shibaura yesterday morning and the First Fleet arrived in Tokyo

Bay this morning for guard duty. No bluejackets or marines have been landed except to guard the Ministry of the Navy.

6. Several vernacular newspapers this morning commented in regard to the next Premier and Cabinet. The opinion was expressed that it would be difficult for Prince Saionji to advise the Throne in the present circumstances, as the apparent purpose of the uprising was to dispose of the "senior statesmen bloc" surrounding the Throne, but that it was most necessary to appoint a really national Cabinet composed of men of ability and headed by a man of great influence and upright character in order to correct the present emergency situation. No attempt has yet been made to forecast the name of the next Premier.

Repeated to Peiping.

GREW

894.00/583: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

TOKYO, February 28, 1936-midnight. [Received February 28-3: 15 p. m.]

46. Embassy's 45, February 28, 6 p. m.

1. A friendly Japanese in high position has informed me that an ultimatum "from the highest source" was delivered the insurgents at 3 o'clock this afternoon ordering them to disband and return to barracks and that the insurgents have chosen to disregard the order. Our informant states that in these circumstances the Government has decided to proceed with military measures early tomorrow morning probably at daybreak and that in view of the determination of the insurgents this may mean fighting until the last man has been wiped out.

2. It is reported that the insurgents demand that General Masaki shall be named Prime Minister; that a portion of the revenues of the big financial interests such as Mitsui and Mitsubishi shall be given to the Government; and that Colonel Aizawa (the murderer of Nagata) shall be freed. They indicate that having drawn the sword for these principles they must carry through to the end.

3. Subsequent to my receipt of the foregoing communication, three radio announcements were made this evening to the effect that the Tokyo Garrison would take "a certain step" against the three or four hundred insurgent troops now stationed in Kojimachi. These official announcements would seem to corroborate the report of my informant.

4. The Embassy's observers find that the disposition of the Government troops in this vicinity and near the British Embassy this evening are precisely the same as when the General Staff officer this

morning predicted that fighting might take place as set forth in paragraph 2 of my 44, February 28, noon.

5. All of the foregoing information indicates that unless a last hour surrender occurs or unless the insurgent officers adopt the classic way out by suicide there will be fighting in Tokyo early tomorrow morning. It is believed that the number of insurgent troops are at present considerably greater than the number mentioned in the radio announcements.

Repeated to Peiping.

GREW

894.00/621

The Consul at Dairen (Grummon) to the Ambassador in Japan

(Grew) 28

DAIREN, February 28, 1936. SIR: I have the honor to submit a summary of a conversation between Mr. Matsuoka, president of the South Manchuria Railway Company and Mr. Golubtsov, the Soviet Consul, held in the presence of the officers of this Consulate, at the Dairen Club, the evening of February 26th on the occasion of a dinner held in honor of Mr. Matsuoka.

At the time the conversation took place no definite information had been received as to the actual extent of the military rebellion in Tokyo. Rumors had been prevalent all day and there was even some doubt as to whether, under the circumstances, Mr. Matsuoka would appear at the dinner. The conversation reported below took place in the lobby of the Club prior to the dinner itself. It should be borne in mind that Mr. Matsuoka was talking to a Communist and used language which he probably considered would be intelligible to one versed in communist ideology.

Mr. Golubtsov asked Mr. Matsuoka what information he had in regard to the day's events in Tokyo. The latter replied that his information, which he would not guarantee to be accurate, was that the Premier, the Minister of the Imperial Household, and the Finance Minister had been killed and that other members of the cabinet had been attacked. He stated that it was a revolution of the young army officers and that 3,400 troops had rebelled in Tokyo. The center of unrest was said to be the Third Regiment in Azabu, Tokyo, and the rebelling troops were believed to have taken possession of the building of the Colonial Ministry and made it their headquarters. All cabinet ministers who were still alive were reported to have taken refuge in the Imperial Palace.

28

Copy transmitted to the Department without covering despatch; received March 23.

The Soviet Consul asked if the rebellion was against the Emperor and Mr. Matsuoka replied that it definitely was not. "It is actually against capitalism," he said. He went on to say that in the view of the young army officers all property in Japan belongs to the Emperor and the political parties and large business and financial houses had been diverting the wealth of the nation to their own ends. The only remedy is violence which will get rid of the politicians. Then Mr. Matsuoka added, "Maybe they are right." Mr. Golubtsov asked if it was the intention of the rebels to abolish private property and Mr. Matsuoka then went into an interesting exposition of what he termed "moral communism" in Japan, as opposed to material communism as it exists in Russia. He said that the Japanese state could not be organized as if it were a machine as the spiritual side of the Japanese people must be given expression. Each nation must work out its salvation according to its own inner psychology. "We had a revolution about 70 years ago to throw out the Tokugawa Shoguns, perhaps the time has come for another revolution to overthrow the present rulers of Japan and again return the country to the Emperor." The above statement is believed to be almost the exact words used by Mr. Matsuoka. Later, in answer to a question as to the danger of disorder spreading, Mr. Matsuoka said that if Prince Higashi-Fushimi 29 and Prince Chichibu were called on, as they probably would be, the army would be kept under control.

The Soviet Consul made the comment later that he believed Mr. Matsuoka knew much more than he had told and that he would not be surprised if Mr. Matsuoka were called back to Tokyo to take a leading part in whatever new government is set up. Respectfully yours,

894.00/586: Telegram

STUART E. GRUMMON

The Ambassador in Japan (Grew) to the Secretary of State

TOKYO, February 29, 1936-11 a. m. [Received February 29-4: 20 a. m.]

47. Embassy's 46, February 28, midnight; Department's 27, February 28, noon.

1. The staff and I sincerely appreciate your message. Members of the staff and their families living in the danger zone are staying with us in the residence which is still heavily guarded with troops, outposts and sandbag barricades below the Chancery, also three detectives and two soldiers within. I believe that the only danger is from flying bullets and that in case of necessity the basement of the residence and Chancery will afford the best possible protection.

"Reference here is probably to General Prince Naruhiko Higashi-Kuni, Supreme War Councilor.

2. According to a radio announcement this morning, about 300 of the insurgent troops from the vicinity of the Sanno Hotel have surrendered and returned to their barracks. At 5 a. m. this morning an appeal to the remaining insurgents was broadcasted, ordering them to obey the Emperor's command that they return to the barracks, asking them to reconsider their position and stating that they would be considered as revolutionists if they refused to obey. Leaflets to the same effect and stating that all revolutionists would be killed are being dropped over the insurgents positions from airplanes. It is significant that these leaflets are addressed only to insurgent soldiers and not to the insurgent officers. At 10 o'clock this morning a radio announcement stated that 30 of the insurgents with machine guns from near the General Staff office surrendered to the loyal troops, and that the Government expected the remaining troops to surrender. All traffic has been stopped in the martial law area and as far as Yokohama. Barricades have been thrown across all streets in the vicinity of the insurgents positions and the residents have been evacuated from the danger zone. The people have been warned by radio to keep out of the lines of fire and to avoid stray bullets by sitting on the floor. Telegraphic and telephonic communications abroad have been stopped, except for Government messages. No newspapers are being published.

3. All the naval vessels in or near Tokyo except one light cruiser and three destroyers have left for Yokohama indicating that the loyal troops are considered sufficient to quell the disturbance.

4. The atmosphere throughout the night and early this morning was tense and every indication existed that combat was imminent. During the course of the morning, however, a relaxation of this tense atmosphere was noticeable probably due to the radio announcement and leaflets. It is evident that the Government is using patience and making every possible effort to persuade the insurgents to disband without resorting to armed attack.

Repeated to Peiping.

GREW

894.00/585: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

TOKYO, February 29, 1936-4 p. m. [Received February 29-4:02 a. m.]

49. The announcement has just been made that all the revolting troops have surrendered, and that normal conditions will be restored

at 4: 10 this afternoon.

Reported to Peiping.

GREW

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