There is no reliable evidence that suggests that the Japanese were willing to surrender on even remotely reasonable terms. I am sorry, but your newspaper article is a bunch of crap. How can anyone take that seriously when that is the only evidence of Japan's willingness to surrender? There is no Japanese evidence nor US government evidence that supports it.
Apparently it was corroborated by MacArthur to Hoover, and Leahy was the one who leaked it to the journalist. Is it so hard to believe that the US government would conceal information of that magnitude from its own citizens, given how its final actions in the War would then be perceived? If you're willing to accept historical evidence that besieging a country with mass bombings has never brought about that country's surrender, why is it so hard to stomach the fact that an administration would put forth a narrative that places its wartime aggressions in the best light possible while simultaneously suppressing any information to the contrary?
Unless you're saying the US government has never done that before. Or that they did, but World War II was the exception. Enough high-ranking members of those wartime administrations have put out memoirs and journals detailing all of this, that I don't even feel the need to post links anymore.