Earlier quoted context omitted.
The Japanese offered to surrender if they could continue to control their captured territories, essentially continuing to rape China. That’s a hell of a condition to allow them.
I'm curious where you found this information, because the best I could find was that negotiations regarding those conditions were never finished: To this end, Stalin and Molotov strung out the negotiations with the Japanese, giving them false hope of a Soviet-mediated peace. [..] The Japanese would have to surrender unconditionally to all the Allies. To prolong the war, the Soviets opposed any attempt to weaken this…
The military fervently wanted a US invasion, believing it could inflict millions of casualties and then negotiate better terms. And many Japanese didn’t feel like they had even lost yet, they were willing to endure bombings feeling their fortress island was unassailable.
https://www.stripes.com/news/special-reports/world-war-ii-th...