The fact that the United States transitioned into a state of heightened readiness, both politically and militarily, has instilled fear in China. The Chinese government, aware of the disparity in national strength between the two countries, considered confrontation with the United States based on public opinion, but it did not desire an all-out conflict or war. At the very least, they had no intention of engaging in war until the weapons and ammunition they had ordered from Germany arrived. Therefore, they hurriedly shifted their stance towards reconciliation. They also sought to appeal to international public opinion for peace. They proposed efforts for the peaceful resolution of issues in northern China at the International League. Furthermore, they made strong efforts to maintain trade relations with Britain and France, who have interests in the South China region.
. . .
United States
The United States understood that China's pursuit of peace was a preparation for a defensive attack, which dampened their war spirit. However, they also recognized that the domestic public opinion in China favored a tough stance against the United States, making it unlikely that China would yield until the end. Therefore, alongside engaging in peace negotiations with China, the United States decided to continue preparing for their ongoing war plans. They adopted a stance of both peace and war.
In addition to the three countries they had previously contacted, they planned a large-scale exercise in Manchuria involving seven countries, including Japan and the Republic of Korea. *1 This exercise had the aspect of intimidating the hearts of the Chinese people. The location chosen for the exercise was a different area from the bulge that pushed the border into Chinese territory—the frontier between the Frontier Republic and China.
. . .
China
China took an active approach toward peace negotiations. One major point of contention between China and the United States was the exclusion of American citizens within China. The Chinese government found it difficult to halt the growing movement among the public to exclude Americans. From the Chinese perspective, the anti-American sentiment among Chinese citizens was a result of how Chinese people were treated in the Frontier Republic. They argued that it would be challenging for China to accept such treatment. However, the United States refused to accept this reasoning. They stated that the treatment of Chinese people in the Frontier Republic was carried out for the purpose of maintaining law and order.
In response, China proposed a ban on mutual exclusion activities, but the United States also rejected this proposition. The United States countered that it was unfair to equate China, which was clearly implementing exclusion movements against Americans, with the Frontier Republic, where no such policy was in place. At this point, China realized something. The United States had no intention of engaging in negotiations. If China wanted to pursue non-conflict, the United States demanded that China fully comply with their demands. China became fearful.
During these negotiations, the large-scale exercise in Manchuria, involving the media from various countries, was taking place. China understood that it was under significant pressure, witnessing the presence of nearly 1.000 tanks/AFVs and around 1.500 field guns. Considering the remaining forces within the Frontier Republic and the units defending the bulge into Chinese territory, the total number exceeded 200.000.
When the Chinese government inquired with the Chinese military command about the possibility of countering the US military, the response was that with the current military strength, it would be impossible to defend the northern bank of the Yellow River, including Beijing, in the predominantly flat Hebei Province. China then suggested the possibility of drawing the conflict into the Jiangnan region, south of the Yangtze River. However, the response was that under China's current international relations, there was no prospect of success due to a lack of support.
The surrounding countries had formed alliances with the United States (G4). The response was that even if China sought support from countries like Germany, there was no guarantee it would reach them. Given the certainty of inevitable defeat in the event of war, the Chinese government chose to compromise with the United States.
. . .
Chinese Communist Party
The CCP rejoiced upon receiving reports from information operatives within the Chinese government that the government had steered its diplomacy towards a compromise with the United States. This was seen as a development that would create a rift between the Chinese government and the Chinese people. By 1940, the CCP had continuously faced attacks and suppression from the Chinese government, making it increasingly difficult to maintain their organization as an armed faction. Therefore, the loss of support of the Chinese government by the people was a cause for celebration.
The leadership of the CCP decided to focus on propaganda campaigns to increase dissatisfaction among the Chinese people, rather than resorting to armed activities in the short term. They also sought to approach the Soviet Union to build up their military capabilities as well as economic and military assistance. Initially, the relationship between the Soviet Union and China faced difficulties due to the Soviet Union's close ties with Germany, which also had a relationship with China. This was partly due to the fact that the Frontier Republic, which China confronted, had an alliance with the Siberian Republic, an enemy of the Soviet Union. The Soviet Union aimed to exert pressure on the Frontier Republic by cooperating with China, ultimately leading to a decline in the power of the Siberian Republic.
However, this relationship collapsed when China announced its compromising stance towards the United States in the international community. The Soviet Union decided to join hands with the CCP as a replacement for China, forming an organization to counter the Eastern Bloc (Japan-Anglo Union).
. . .
The US-China 1940 Peace Treaty
After twists and turns, the diplomatic negotiations concluded with China accepting the United States' demands in their entirety. The Chinese government agreed to the obligation of protecting American citizens within Chinese territory. Furthermore, the free activities of armed groups (PMSC) other than non-American/Frontier government forces within Chinese territory were also recognized, with the purpose of ensuring the protection of American citizens. A 50 km demilitarized zone was established along the border between the Frontier Republic and China. *2 As compensation to the United States, the import tariffs on American/Frontier Republic products imposed by China would be suspended for the next ten years. Regarding the renewal of China's military equipment, although no specific framework was established, the treaty included a provision stating that it should be done with restraint for the sake of peace.
The content of this treaty, which was considered highly humiliating, sparked boiling public opinion among the Chinese people.
. . .
China
The reconciliation treaty signed between China and the United States was far from acceptable for the Chinese people. A strong backlash emerged against both American imperialism and the weak stance of the Chinese government in accepting it. However, the Chinese government began to suppress these opposition movements based on the terms of the treaty.
The growing discontent within China started to turn towards French Indochina, where resistance movements against the same imperialists were taking place. Chanting for solidarity among fellow Asians and dreaming of Asian independence from imperialist ruling powers, including the Japanese, the traitors to Asians, and the Americans, who undermine China. It embraced the ideology of Greater Asian Solidarity (Greater Asianism). This movement inevitably influenced the ideological individuals who remained in Japan—the state of North Japan.
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Notes
*1:
Great Manchurian Exercise
- Participating troops: approx. 100.000
- Participating AFVs: approx. 1.000
- Participating field artillery: approx. 1.500
- 10 divisions
- 1 brigade
- 1 regiment
United States of America
- 1 mechanized division
Japan
- 1 mechanized regiment
Republic of Guam
- 1 mechanized division
Frontier Republic
- 1 armored division
- 1 mechanized division
- 2 motorized division
Siberian Republic
- 1 mechanized division
- 2 motorized division
Pardes
- 1 mechanized brigade
Republic of Korea
- 1 motorized division
Order of Battle
United States Operations Command Frontier Republic – Great Manchurian Exercise 1st Army Group
1st Army
- 1st Corps
-- 11th Mechanized Division (USA)
-- 5th Infantry Division/Mechanized (Frontier Republic)
-- 702nd Mechanized Division (Siberian Republic)
- 4th Corps
-- 3rd Marine Division/501st Mechanized Division (Guam SAZ/Republic of Guam)
-- 1st Independent Armored Regiment (Japan)
-- 7th Armored Brigade (Pardes)
2nd Army
- 2nd Corps
-- 3rd Division/Motorized (Frontier Republic)
-- 4th Division/Motorized (Frontier Republic)
-- 712th Motorized Division (Siberian Republic)
-- 714th Motorized Division (Siberian Republic)
- 3rd Corps
-- 2nd Division/Tank (Frontier Republic)
-- 204th Motorized Division (Republic of Korea)
The force was divided into two groups for the rivalry. Furthermore, the Republic of Korea recognized it as an opportunity to earn gratitude from the United States and voluntarily proposed to contribute its military forces. Naturally, prior consent was obtained from Japan.
However, due to the judgment that an independent military agreement with foreign (G4) powers was undesirable for a Japanese state, it was decided to consolidate it into a cooperation treaty between the Republic of Korea and the Frontier Republic for dealings with China.
*2: This is a 50 km zone within Chinese territory from the border. At the same time, the airspace was designated for surveillance by League of Nations surveillance aircraft.
Initially, the Chinese government showed reluctance as the conditions seemed close to a territorial cession, but the United States did not back down. The United States insisted that the Manchurian Incident was the trigger for attacks originating from Chinese territory and pushed that narrative.