711.94/863: Telegram

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

172. Report of transfer of American Fleet to Atlantic is given unusual publicity and received with great satisfaction in Japanese press. The move is interpreted generally as further evidence of the Administration’s desire to better relations with Japan. The Administration is reported as making friendly gesture to counteract any anxiety occasioned by impending Russian recognition, and in order to create an atmosphere favorable for the 1935 conference. The only dissenting voice is the Navy’s whose unidentified spokesman is reported as declaring that the transfer has no significance and that it is premature to conclude that ill-feeling created over Manchuria can be removed by mere transfer. The Navy Department’s reported attitude is apparently considered by the press to be influenced by fear of the effect on its budgetary demands.