893.51/2695: Telegram
The Acting Secretary of State to the Ambassador in Japan (Morris)
92. Your 84, March 8, 2 p.m.79
The Department is today addressing to the Japanese Embassy the following reply to its memorandum of March 2:80
[Page 514][Here follows the Department’s memorandum of March 16 to the Japanese Embassy, printed supra.]
[Paraphrase]
Lamont would be justified if need be, in our opinion, in agreeing to leave outside of the field of the consortium all enterprises and options listed in the memorandum presented by Japan when he negotiates with agents of the financial combine in Japan in regard to exempting definite undertakings in Mongolia and Manchuria. This is on condition, however, that he carefully avoid admitting some claim not yet made and founded on a liberal interpretation of the statement in part 3 of the memorandum list regarding auxiliary or contributory railways.81
We trust that prior to leaving for China five days hence Lamont may be able to reach with the group in Japan an agreement acceptable to both sides, founded on his agreeing in whole or in substance to the exemption from the consortium of all undertakings which Japan has listed. If an agreement on this issue is reached soon, the Department feels that the settlement of the political question … will be made easier. On that subject we wish to keep from accepting any formal statement because it would be impossible to contrive, in our opinion, any statement which could not be given interpretations not in harmony with the condition of Mongolia and Manchuria as we view it.
We do not feel able to authorize, on this account, the interchange of notes on the part of the Japanese group and Lamont suggested in telegram no. 90 of March 11, 7 p.m., as the fact that the Department was aware of this action would in itself involve liability for the statements made. It is best for this reason that the group in Japan and Mr. Lamont seek merely to settle the issue of what special undertakings the consortium will exclude from its operations.