As to if the Japanese were ready to surrender or not one need only look at their official response to the Potsdam Declaration. The declaration was agreed upon by China, Great Britain, and the United States. It was issued on July 26th. Here is the complete text of the declaration.
Potsdam Declaration Basically the declaration began by saying that these powers had agreed to give Japan the opportunity to surrender. It then goes on by listing why Japan should surrender, and what terms were being offered. Some powers, such as Australia, didn't like the fact Japan was even being given these terms.
The declaration ended with an ultimatium.
"We call upon the government of Japan to proclaim now the unconditional surrender of all Japanese armed forces, and to provide proper and adequate assurances of their good faith in such action.
The alternative for Japan is prompt and utter destruction. My italics.
The Japanese response to this declaration is summed up in a Japanese word, Mokusatu. I don't know many Japanese words. My vocabulary is limited to Saki, Sayonara, Origato, (and I've probably mispelled even those) and Mokusatu. As I understand it the word literary means to ignore, but it can have several meanings. The one most likely to be used in the context of July 1945 was to "ignore with contempt." In other words the Japanese government was telling the world that they thought so little of the Potsdam Declartion, a "thing of little importance" that they would show their total contempt for it by ignoring it, Mokusatu.
My their actions in declaring Mokusatu over the Potsdam Declaration Japan was saying, in effect, that they were NOT ready to surrender.
It wasn't until after not one but two atomic bombs were dropped, AND the declaration of war by the Soviet Union against them, that Japan finally decided to surrender.