Japan was finished, and was all ready to sue for peace; the only condition it made was that the position of the Emperor should be protected. The Japanese government under Kantaro Suzuki that took office in April 1945 did so with the one single objective of ending the war. All this was known to the Western Allies, since the Japanese codes had long since been broken.
By May 1945, the Japanese were suing for peace through Switzerland and Moscow – peace on any terms, just so long as the position of the Emperor was protected.
These are the terms the Japanese offered as early as 20 January 1945, and repeated through the USSR in July[1,3]:
* Complete surrender of all Japanese forces and arms, at home, on island possessions, and in occupied countries.
* Occupation of Japan and its possessions by Allied troops under American direction.
* Japanese relinquishment of all territory seized during the war, as well as Manchuria, Korea and Taiwan.