Memorandum by the Secretary of State

The Japanese Ambassador called on me today and we discussed the radio situation in China. He reminded me that the Japanese Government had sent its original note on this question about a year ago and that he had had various discussions since. His Government was very much disappointed that they had not received a reply to their note. The Japanese Ambassador said that I told him on May 10 that we had considered the matter, had drafted a note, and were telegraphing it to MacMurray for suggestions. I think this is correct but in addition to this I did ask MacMurray to try to find out from the Chinese Government what answer they were going to make to the Japanese proposal for a consortium and as to whether the Chinese would consider a consortium as they had always opposed it; also what the Chinese Government generally would do about the situation. The Japanese Government thinks that I did not tell him that on the 10th of May. I think that I did tell him but he says not.

The Japanese Ambassador feels as though he should have an answer to the question; that the Japanese Government under the present conditions in China feels it is very important that there should be more harmony between the United States and Japan as to the radio interests; that Japan is not finally committed to the proposition that it has made but is prepared to consider any reasonable proposition which the United States will make if the spirit of the proposal is in harmony with the general ideas expressed by the Japanese Government. The Ambassador said that the Japanese Minister in Peking has lately had a conversation with the new Minister of Foreign Affairs of China and the Chinese Minister of Foreign Affairs suggested that it would be well for Japan, the United States and China first to have a conference before taking the matter up with the British and the French.