711.942/503: Telegram
The Ambassador in Japan ( Grew ) to the Secretary of State
[Received 12 noon.]
48. The following statement is to be handed by the Foreign Office to the press at 10 p.m. for release at midnight today Tokyo time:
“On July 26, 1939, the Government of the United States of America through our Ambassador at Washington communicated to the Japanese Government their desire to abrogate on a six months’ notice the Japanese-American treaty of commerce and navigation concluded at Washington on February 21, 1911, for the reason that there were provisions in the said treaty requiring new consideration, and for the purpose that the way might be prepared for such consideration and that the treaty be rendered capable of better safeguarding and promoting American interests as new development might require.
It appears that the abrogation was intended by the American Government to be of service in the solution of various questions arising between Japan and America in connection with the China affair.
In view of the importance of the complementary and mutually beneficial trade relations between Japan and America, and because Japan’s policy in the present China affair is not aimed at eliminating the just and reasonable interests of third powers in China, but on the contrary there are, it is firmly believed, many fields for cooperation between Japan and third powers in creating a new East Asia, the Japanese Government deemed it appropriate to elucidate further their position to the American Government and to seek readjustment of the relations between the two countries. To this end our Government have continued and are still continuing to exert great efforts. At the same time they have conducted negotiations regarding a new treaty, or at least regarding a measure for preventing the advent of a treatyless situation. While negotiations are still in progress on these matters, unfortunately no agreement has been reached so far, leaving Japan and America without a treaty from today.
On the other hand, the American Government, in order that Japanese-American trade relations should not unduly suffer, took steps through decrees issued toward the end of 1939 by the Treasury and the Department of Commerce to exempt Japanese ships from light dues and from additional tonnage duties and the 10 percent ad valorem [Page 198] discriminatory duties on cargoes brought in by Japanese vessels. The Japanese Government have no intention to discriminate in any way against American goods or vessels, and they have already taken the necessary measure in that regard. Consequently, despite the non-treaty situation, the commercial relations between Japan and America will in practice be subject to no change.
Japanese subjects now residing in, or going to, America in the capacity of the so-called “treaty merchant” are to be treated hereafter by the American Government as temporary visitors. But this is not considered likely to cause any special difficulties.
Though the trade relations between Japan and America, as stated above, will on the whole remain unaltered, a treatyless situation which renders unstable the relations in general as well as the trade between the two countries, is undesirable for both Japan and America.
It is confidently hoped that through the negotiations that are being continued the Japanese-American relations will be restored to a normal state with a treaty basis.”