IPS DOC 1634 - continued ITEM: 17 The Foreign Office's Opinion Re: Saving the North China Situation, 30 July 1937, and Final Plan agreed upon by Foreign, War, and Navy Ministers in the Premier's Office on 7 Aug 1937. TRASNALATIQN: English translation attached to the original. ANALYSIS: After the Japanese occupation of Peiping, the Foreign Ministry drafted a solution on 30 July 1937. It was against the establishment of puppet regimes or autonomous governments. It still insisted that the whole matter should be taken up with the National Government of China. It suggested to the Navy Ministry and the War Ministry that diplomatic demands should include the extension of the demilitarized zone in North China (formerly created by the Tangku Truce of May 1933) and the economic coopera¬tion between Japan and China in north China, etc. About a week later, another drafted plan of the Foreign Ministry suggested the settlement of the issue between Japan and China be over-all, which began with the demand that China should promise that from now on Manchukuo did not remain as a question any more. The above plan was agreed upon by the three Ministers, Foreign, Navy and Army, in the Office of the Prime Minister, the next day, 7 Aug 1937. SIGNIFICANCE: 1.This is a continuation of the preceeding document. Item 15 (c), still centering upon the problem of Manchukuo. 2.This is significant because the decision was made after the Japanese occupation of Peiping and Tientsin and before the outbreak of war around Shanghai on 13 Aug 1937. 3.It implicates HIROTA, then Foreign Minister, and UMEZU, then Vice Minister of War. SUGGESTIONS: 1.This document should be processed and reserved for either HIROTA or UMEZU. 2.The information contained therein may be used in cross- examination of defense witnesses connected either with the 7 July 1937 Incident or the 13 Aug 1937 Shanghai Incident.