711.94/732

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

Dear Mr. Secretary: My telegram No. 224 of September 352 gave you our present diagnosis of the Japanese political situation so far as it relates to Manchuria, representing the views of the entire staff including the Counselor and the Naval and Military Attachés. There is abundant evidence that those elements which now control the Government firmly intend and expect to carry through their Manchurian program regardless of foreign opposition of whatever nature, and while they expect some kind of moral opposition by the League of Nations they clearly regard the United States as their greatest stumbling block and potential enemy. The anti-American press campaign is becoming more and more intensive to prepare public resentment in advance against whatever steps the United States may take in opposing what the military clique conceive to be Japan’s supreme and vital national interests.

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There is evidence that this press campaign is stimulated from headquarters and practically nothing that is favorable to the United States is allowed to appear. Thus the reports of the hearty welcome given in America to the Japanese Olympic Team and the genuine enthusiasm of the spectators at the fine showing of the Japanese athletes were purposely negatived by the publication of simultaneous reports that the Japanese athletes were refused admission to various cafes and dance halls in Los Angeles owing to their color. Although the speeches of foreign ambassadors are almost invariably published here, the Japanese press abstained from printing a word of the address of welcome and congratulation which I made at the home-coming of the team, in which I spoke of the fine impression the team had made in the United States and the obviously friendly feeling of the American people for the Japanese people which was so clearly shown by the reported enthusiasm of the public at the games.

Another rather nasty case has just occurred. The National City Bank of New York instructed its branches throughout the Far East—in China, Manila and Singapore quite as much as in Japan—to forward photographs of the business sections in their respective cities in order to indicate the modern building progress in those cities. In Osaka the Japanese gendarmes suddenly directed the Bank to stop taking these photographs and shortly thereafter the Japanese press, not only in Osaka but throughout the entire country, carried sensational headlines and many columns of print charging the Bank with taking these photographs (although in strict accordance with law and police regulations) for the purpose of furnishing the United States Government with plans for bombing these districts in case of war. The matter on the face of it was ludicrous because these precise photographs can be bought in the open shops and the Yokohama Chamber of Commerce had recently circulated in the United States a pamphlet containing similar photographs for purposes of business propaganda. The action of the Bank was distinctly in the interests of the Japanese themselves. The authorities have taken no steps, in spite of my urgent request, to right, by a public statement, the heavy wrong done to the prestige of the National City Bank throughout Japan. The poison has worked its course, at least one Japanese member of the Bank’s staff has resigned, threatening letters and delegations of patriotic societies calling for wholesale resignations are being received, and the Bank’s business will inevitably suffer as a result. I am in touch with the local manager and am to see Count Uchida to discuss the matter this afternoon. I give this incident merely to indicate the extent which this anti-American press campaign has reached.

As for the future, no predictions can at present be made with any assurance further than the present facts sketched in my telegram No. [Page 242] 224. Count Kabayama, an influential peer and a friend of the United States, told me yesterday that the conservative elements in the country, while still inarticulate, were steadily gaining strength and that they would be heard from in the near future, but when I asked him in what particular way they would be heard from, he would not qualify his remark further than to say that a more “constructive” policy in Manchuria would be forthcoming. I do not know what he meant, and with continual evidence of the power of the military clique I cannot place much faith in his optimism as to any material change of orientation in the present governmental policies in the immediate future. Nevertheless the moderate elements in the country are steadily working beneath the surface; some hold that they are gaining in influence and that they may be heard from sooner than expected. This is too nebulous at present to justify predictions. We can only wait and see.

The general purport of the report of the Lytton Commission is now generally known. In effect it appears to be a condemnation of Japan’s tactics and actions since September 18, 1931, though served up with plenty of soothing syrup which the Japanese will naturally interpret to suit their own interests. It appears to vindicate the stand which you have taken since the beginning. It recommends a solution which should be acceptable to all parties concerned except the extreme chauvinistic element now in power in Japan. The more moderate elements here would, I think, welcome the just and reasonable solution proposed by the Commission. Whatever action is ultimately taken by the United States and by the League of Nations, it should aim to strengthen the hand of this moderate element by a firm yet moderate attitude. Harsh criticism of Japan, or suggestions of coercion at this juncture would only serve to strengthen the influence of the rabid chauvinists. If we can offer helpful and constructive suggestions leading to the solution recommended by the Lytton Commission, or any other solution deemed advisable by you, which will appeal to all but the ultra-chauvinists here, it may conceivably promote a process of sane thinking in this country which will eventually make itself felt. That, I think, should be our cue.

These letters aim merely to give you a little more background and atmosphere than may appear from our telegrams and despatches. It is difficult to sense the real feeling of a country from the outside, and even on the inside the panorama of affairs is seldom stationary for long. One can only record the picture that one sees at the time of writing. I deeply appreciated the thoughtfulness and courtesy of your recent vastly encouraging letter to me.

May I take this occasion to congratulate you very heartily on the great value and wisdom of your speech before the Council on Foreign [Page 243] Relations which seemed to me to be one of the most progressive steps of this Administration?

Respectfully yours,

Joseph C. Grew