893.51/2819
The Japanese Embassy to the Department of State
Memorandum
The Japanese Government received on May 3rd the memorandum of the American Government dated April 29th in reply to their memorandum of April 3rd last, and have carefully examined it.
The Japanese Government are happy to note that the American Government is much gratified with the readiness of the Japanese Government to forego, in reliance upon the assurances given in the memorandum of the American Government dated March 16th last,28 their request for the acceptance of the proposed formula, and that [Page 540] the American Government has lent emphasis to the assurance to which it had already subscribed.
As regards the two points made by the Japanese Government relating to the Taonanfu-Jehol railway and the line connecting a point thereon with a seaport, the American Government seems to think that they constitute new propositions and expresses regret that these questions should have been raised at a moment when it was hoped that the four Powers concerned were about to reach an agreement.
In particular the American Government appears to be of opinion that the point (1) namely Japan’s desire in regard to the extension of the Taonanfu-Jehol railway, is tantamount to a claim for an exclusive power of veto and is therefore contrary to the fundamental principles upon which the idea of the New Consortium is based. The Japanese Government, in making the point in question, were prompted by no desire of putting forward any new condition or demand. It was simply in order to avoid future misunderstanding that the point was raised as one of the actual examples of enterprises prejudicial to Japan’s vital interests which formed the subject matter of the general assurances given by the American Government. The Japanese Government feel confident that as the question involved in this case comes within the scope of the general assurances, the Government of the Powers interested in the Consortium will, in the spirit of mutual trust and friendliness, readily appreciate Japan’s point of view. As to the point (2) the Japanese Government have raised it merely in order to set forth the circumstances in which they feel the need of assistance and co-operation of the Powers concerned in the actual construction of the Taonanfu-Jehol railway and the line connecting a point thereon with a seaport.
In thus giving frank expression to their hope, the Japanese Government were inspired by no other desire than to make an appeal to the spirit of general co-operation which forms the foundation of the Consortium.
The Japanese Government, holding as they do the views as above enunciated, have no intention whatever of insisting upon obtaining the explicit assurances or consent of the American Government in regard to the two points above referred to. Their idea is simply to bring the Powers concerned to an understanding of their interpretation in these respects. Relying, however, upon the friendly spirit in which the American Government was good enough to reaffirm the fact that the general assurances to which it has already offered to subscribe are adequate enough to safeguard the interests of Japan, the Japanese Government would refrain from further insisting on the discussion of these points, and, in order to facilitate the formation [Page 541] of the New Consortium with the least possible delay, they would be satisfied at this juncture with bringing to the knowledge of the American Government their interpretation of these questions and will be prepared to lend their support to the conclusion of an arrangement between the banking groups concerned and to give it the necessary confirmation.