711.94/1455: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

200. 1. Replying to an interpellation in the Budget Committee of the Lower House yesterday afternoon with regard to the attitude of the United States towards Japan, the Prime Minister is reported to have stated inter alia as follows (our translation of press stenographic record):

“As for the problem of a general embargo this is a serious matter for the country imposing the embargo, [as well as?] the country upon which it is imposed. If one false step is taken, danger lies ahead for both countries. I do not believe that the United States would risk applying a general embargo upon Japan. However, we must be prepared for any eventuality. The Government is giving every consideration to this point. However, the question of the danger to the two countries through the imposition of an embargo is more than important—it is pure supposition—and I must refrain from giving ‘yes’ or ‘no’ replies to questions based on supposition.”

[Page 59]

2. Significant portions of a reply by the Foreign Minister on the same occasion follow:

“As for relations between the Chungking Government and the United States the fact must be admitted that the United States, which recognizes the Chiang regime, aids that regime indirectly in various fields of trade. The loan of 25 million dollars42a and now the loan of 20 million42b may be placed in that category. The United States is supplying certain types materials to the Chiang regime none of which are supplied to Japan. In other words, indirect aid to the Chiang regime has the effect of a moral embargo. The United States would deny this, but that is the way it appears to Japan.

The United States does not fully grasp the real significance of the so-called new order in East Asia. As I have often stated, the United States harbors the misunderstanding that foreign rights and interests and American rights and interests and economic activity in China and in East Asia are to be ousted. As you are also aware the United States persistently advocates the application of the principle of the open door and equality of opportunity. I do not deny that the American attitude toward Japan has become stronger with the progress of the China incident and that Japanese-American relations have become progressively worse. As I have frequently declared we are making every effort to explain Japan’s ideas with regard to the new order, the open door, equality of opportunity, etc. However, we have been unable up to the present time to convince the United States. The state of affairs is such that so long as hostilities endure in China misconceptions will be announced of the right of Americans and it will be impossible for Japan’s real intentions to be understood. I trust, however, that with the progress of the incident, the diminution of hostilities, and the advent of peace it will be possible to predict [that] the United States [will] recognize the new situation. These considerations preclude the thought that relations between Japan and the United States are bound to become aggravated. We must exert every effort to perfect our policy and obtain recognition for it. Accordingly I believe that the Japanese Government should seize every opportunity to make the Japanese attitude fully understood by the American Government.”

Repeated to Shanghai. Shanghai please repeat to Chungking and Peiping.

Grew
  1. See statement by the Reconstruction Finance Corporation on December 15, 1938, issued as press release No. P–1463.
  2. See statement by the Federal Loan Administrator (Jones) on March 7, 1940, issued as press release FLA–18.