893.51/2724: Telegram
The Chargé in Great Britain ( Wright ) to the Acting Secretary of State
[Received 3:34 p.m.]
484. Continuing my 482, March 20, 11 a.m.85 Following is text of memorandum from Japanese Embassy referred to therein:
[“] Memorandum. The Japanese Government have given their serious consideration to the British Government’s note of the 19th November last relative to the formation of a new consortium.86 The British Government appear to be under the impression that the proposal [Page 516] of the Japanese Government in regard to South Manchuria and Eastern Inner Mongolia amounts either to the assertion of a monopoly of economic interests in that region or to the establishment of a so-called sphere of interest there and further that such a proposal cannot be reconciled with the principle of independence and territorial integrity of China.
The Japanese Government desire to set forth once again their views frankly on the purpose of their proposal and invite further consideration on the part of the British Government on this subject.
From the nature of the case the regions of South Manchuria and Eastern Inner Mongolia which are contiguous to our territory of Korea stand in very close and special relation to Japan’s national defense and her economic existence. Enterprises launched forth in these regions therefore often involve interests vital to the safety of our country. This is why Japan has special interests in these regions and has established there special rights of various kinds. The Japanese Government are under no misapprehension or misgiving as to the purpose of the organization of the consortium and are glad to cooperate under such an arrangement with the powers concerned for the promotion of the general welfare of China. But as is suggested in the proposed consortium merely out of business considerations to throw open to the common activities of an international financial combination even those enterprises in the regions of South Manchuria [and] Eastern Inner Mongolia which vitally affect the economic existence and national defense of Japan would be no safe way of providing for the national peace and security and for this reason it would hardly meet the approval of the public opinion in Japan. These considerations were fully set forth by Viscount Chinda in his interview with Lord Curzon on the 1st September last year.
Furthermore the recent development of the Russian situation exercising as it does an unwholesome influence upon the Far East is a matter of grave concern to Japan. In fact the conditions in Siberia which have been developing with such alarming precipitancy of late are by no means far from giving rise to a most serious situation which may at any time take a turn threatening the safety of Japan and the peace of the Far East and ultimately place the entire Eastern Asia at the mercy of the dangerous activities of extremist forces. Having regard to these signals of the imminent character of the situation the Japanese Government all the more keenly feel the need of adopting measures calculated to avert any such danger in the interest of the Far East as well as of Japan. Now South Manchuria and Mongolia are the gate by which this direful influence may effect its penetration into Japan and the Far East to the instant menace of their security. The Japanese Government are convinced that having regard to the vital interests which Japan as distinct from the other powers has in the regions of South Manchuria and Mongolia the British Government will appreciate the circumstances which compelled the Japanese Government to make a special and legitimate reservation indispensable to the existence of the State and its people.
In short the present proposal of the Japanese Government in regard to Manchuria and Mongolia is based, as already explained, on the paramount importance of the economic existence and national security [Page 517] of the country coupled with a due regard for the general peace of the Far East, a consideration which has been strengthened by the recent development of the situation. Consequently Japan is prepared to cooperate in Manchuria and Mongolia with the financiers of the powers concerned so long as the main purpose of their proposal as above enunciated remains respected. Nor need they say that their proposal was prompted by [no desire] of making any territorial demarcation involving the idea of economic monopoly, or of affirming or pretending sphere of interest, or of acting in defiance of the principle of the independence and territorial integrity of China. It is confidently hoped that the British Government will take these points into their most serious consideration.
Lord Curzon invited Viscount Chinda, if there is any fear that any project launched under the aegis of the consortium might threaten the strategic security of Japan, to guard against this danger by proposing a formula to meet the case. It is a cause of gratification to know that the British Government thus share the apprehensions entertained by the Japanese Government. In view of the foregoing considerations the Japanese Government while authorizing the Japanese bankers’ group to enter the proposed consortium on the same footing as the bankers’ groups of the other powers concerned, venture to propose to achieve the settlement of the question at issue by exchange of notes between the governments concerned, a note embodying the sense of the formula hereto attached.”
Then follows formula and list of contracts and options which by comparison requested in Department’s 243 March 9, 5 p.m.,87 reveals the following differences from text communicated in Department’s 227 March 6, 6 p.m.:88 in paragraph 1 of list after the words “are unaffected by” insert “the loans to be made. Hence they do not come within”. In paragraph 3 of list the date of the memorandum is changed to March 16th, 1920 to conform to date of memorandum delivered here. In paragraph 3 the phrase beginning “and also” and ending “rights of Japan” is omitted. In 3d paragraph insert as penultimate sentence the following “both the British and American Governments have already agreed to the exclusion of most of these lines.[”]
Paris informed.