756D.94/125
The Ambassador in Japan (Grew) to the Secretary of State
[Received March 3.]
Sir: … I have the honor to report for the Department’s information and record, the recent pronouncements made by officials of the Japanese Government setting forth Japan’s present policy regarding the Netherlands East Indies.
In his speech before the opening session of the Diet on January 21, the Foreign Minister stated that the Netherlands East Indies “lay [Page 304] within the sphere of co-prosperity in Greater East Asia”, and that “if only for geographical reasons, they should be in intimate and inseparable relationship with our country.” In speaking of the “Co-prosperity Sphere” itself he said that “it is our avowed purpose to bring all the peoples in Greater East Asia to revert to their innate and proper aspect, promoting conciliation and cooperation among them”; that Japan is the leader in East Asia; and that “no other course is left to Japan but … to secure an economic life of self-supply and self-sufficiency within the region of Greater East Asia.”
There was promptly reported in Japan the official announcement issued by the Netherlands East Indies Government with regard to its attitude concerning Mr. Matsuoka’s pronouncement of Japan’s policy. An article which appeared in the January 25, English-language issue of the Tokyo Nichi Nichi, quoting remarks attributed to Mr. Van Mook, Minister of Economy of the Netherlands East Indies Government, in this respect, is herewith enclosed.19 The press gave much attention to these remarks and in the Diet various interpellations were made in the matter. Particular attention was directed to the possibility of the successful conclusion of the economic negotiations at Batavia in view of the attitude of the Netherlands authorities. In reply to the interpellations, the Foreign Minister is reported to have stated that it was the Government’s intent to continue the negotiations “to the last moment.” He admitted that the negotiations were extremely difficult. He stated that the Netherlands authorities were applying unnecessarily harsh restrictions upon Japanese enterprises, trade, and emigrants; and that Japan’s trade with the Indies was small because the Netherlands authorities had been placing too many obstacles in Japan’s way. He declared, however, that the decline in trade with Europe would favor the conclusion of an agreement for an increase of the Indies trade with Japan, and in any event he did not believe that the Netherlands authorities would refuse Japan’s demands to the end.
In further remarks before the Diet, the Foreign Minister is reported to have stated that the Japanese Government has never taken “an irresolute attitude” towards the Netherlands East Indies Government, that Japan was determined to advance its cause embodying “an endeavor to enable all peoples in the sphere of Greater East Asia to enjoy prosperity in proportion to their respective capacities.” There is enclosed a clipping of an article which appeared in the January 30, 1941, English-language issue of the Tokyo Nichi Nichi, reporting at length these remarks.20
[Page 305]On January 31, the Netherlands Minister at Tokyo, upon instructions from his Government, made a statement to the Vice-Minister for Foreign Affairs to the effect that the Netherlands Government wished to make it clear that the people of the Netherlands East Indies could not be expected either to let their actions be guided by the conception of the “New Order” as set forth by the Foreign Minister, or to acquiesce in the consequences of its eventual application. On February 3, the Deputy Spokesman of the Cabinet Information Board referred to the Netherlands Minister’s statement describing it as a declaration by the Netherlands Government in London to the effect that that Government would not recognize inclusion of the Netherlands East Indies in the Greater East Asia Co-Prosperity Sphere. The Spokesman announced that the Japanese Government would not make any formal reply to the communication, but that the Vice-Minister had informally told General Pabst that Japan would adhere to its fixed policy and intended to continue the negotiations at Batavia with the Netherlands East Indies authorities for economic collaboration between that country and Japan. The Spokesman was reported as stating further that Japan’s policy would not be affected by the Netherlands Government’s declaration of which the Japanese Government could not take serious notice; and that Japan is determined to realize concrete results from the Batavia conference.
The Japanese press gave an appreciable amount of comment to the situation between Japan and the Netherlands East Indies. It stressed the view that cooperation of the Netherlands East Indies with Japan’s policy was indispensable to Japan; that the Netherlands East Indies had shown an unfriendly attitude towards this country; and made thinly veiled admonitions to the effect that the Netherlands East Indies should consider the danger to it of opposing its incorporation into the new “Co-prosperity Sphere”.
The agenda of the Japanese delegation to the economic conference at Batavia was submitted to the Netherlands delegation in January. No publicity has been given in Japan to the Japanese desiderata. The Embassy has been informed by the Netherlands Legation here that although the tone of the Japanese desiderata is friendly and non-aggressive, the demands themselves are of such a nature that, if acceded to, the Netherlands East Indies would be reduced to the status of a Japanese colony.
It is, of course, impossible to predict at this time the further development of the situation between the two countries, but through these expressions of view the general nature of the policies of the two countries and the divergence between those policies have been made public and in effect placed on record.
Respectfully yours,