-1- IPS DOC 1634 TITLE: FILE: IMPORTANT DECISIONS RE; INTERNATIONAL AND NATIONAL POLICIES (SECRET) ITEM: 16 (c) Agreement Between the Bureau Chiefs of the Foreign Ministry, War Ministry and Navy Ministry Re: CHIINA INCIDENT, dated 23 July 1937. TRANSLATION: An English translation of the text of the agreement is attached to the original. However the translation does not include the marginal notes written in pen. The Foreign Ministry suggested that, 1.Reinforcements should be stopped, 2.With the withdrawal of the Chinese 37th Division to the South, the reinforcements already sent should be placed outside the Great Wall (that is, in Manchuria, not in North China), 3.Japan would demand through negotiation with the National Government of China the following: (a)Recognition of Manchukuo by China, or, a promise from China not to touch the Manchurian problem (that is, to consider it as a closed issue), (b)A Military Alliance between Japan and China, 4.Japan would in turn accept certain demands of China, such as the abolition of the Eastern Hopei Regime, the Tangku Truce of 1933, the Shanghai Truce of 1932, etc.. The suggestion was agreed upon by all the parties at the conference. However, Army was not representated by its Chief of Military Affairs Bureau, USHIROKU, but by his subordinate, SHIBAYAMA. ANALYSIS: The Marginal notes written in pen reveals that at 4 p.m., SHIBAYAMA telephoned Foreign Ministry that USHIROKU disagreed with the above decision. He was against the decisions that reinforcements should be stopped. He did not consider the above decision to be the best way to attain the objectives.