500.A15a3/766: Telegram
The Ambassador in Japan (Castle) to the Acting Secretary of State
[Received March 20—9:05 a.m.]
51. Repeat to London.85 My 50, March 19, 4 p.m.86 The Nichi Nichi this morning carries the following article:
“Admiral Kanji Kato, chief of the Naval Staff, and Vice Minister Admiral Kobayashi called on the Prime Minister yesterday afternoon. There was a full exchange of opinion, Admiral Kato going into the American proposal at great length and explaining the effect which it would have upon the disposition of Japanese naval forces. He pointed out that while there was virtual agreement over the demand for the global ratio in auxiliary vessels, the inferior ratio of 60 [Page 69] percent in heavy cruisers and the inability of Japan to construct new submarines before 1936 made it impossible for Japan to accept the proposal. He then went on to say that as Japan had gone so far as to surrender parity and accept the 70 percent ratio, which is the minimum compatible with national security, as the basis of the agreement it now remained for the United States to make the next concession. After the Prime Minister had put several questions regarding the future of the Conference, Admiral Kato brought out his last and final plan. He proposed that the Government should explore the possibility of establishing a political treaty to cover the Pacific and to include Japanese-American relations with respect to China. Mr. Hamaguchi promised to give the suggestion the most careful consideration.”