File No. 694.119/3

The Chargé in Japan ( Wheeler) to the Secretary of State

[Telegram]

My telegram of August 12, 8 p.m.1 On the 13th instant a committee appointed at a conference of thirty-five of the shipbuilding dock and trading companies of Osaka and Kobe came to Tokyo and put into my hands a memorial reciting that the American ban on export of steel will lead to closing of Japanese factories employing many hundred thousands of workmen in ship, house and bridge construction, thus affecting almost every phase of industry, that it will make impossible completion of vessels under construction for Allies or which may be sold or chartered to Allies and would cause shortage of internal transporting capacity thus necessitating withdrawal of bottoms now in Allies’ service. Local office further states that sale and charter contracts in Japan are in an abnormal condition, ownership or charter rights being sold and resold before construction is begun so that although the greater number of ships now building will go eventually to the Allies absence of direct connection between builder and final owner makes it impossible to furnish satisfactory certificates. Memorial closes with a prayer that license be given for the export of materials already under forward contract between American steel companies and Japanese shipbuilders.

I have shown this memorial to Viscount Motono who said that he considered it a true representation of the situation and that he would be grateful if I would cable you its contents. He suggested that in the case of vessels under construction if export license be given covering material, the Imperial Government might furnish any required guarantees.

I am confident that for any concession further than this the Imperial Government will be prepared to propose terms. Viscount Ishii has been directed to broach the matter to you.

Wheeler
  1. Not printed.