Office of the Historian

894.797/6: Telegram

The Chargé in Japan (Neville) to the Secretary of State

Tokyo, August 10, 1935—noon.
[Received August 10—4:29 a.m.]

165. Cabinet approved August 9th for submission to the next session of the Diet a draft bill for the control of the automobile industry with the following pertinent provisions.

1.
The imposition of a license system for assembling automobiles and the manufacture of parts.
2.
Licenses will be granted only to companies organized under Japanese law and whose majority of stock is held by Japanese subjects.
3.
Companies already established will not be affected to the extent of present production capacity but any extension or expansion in equipment or output facilities will be subject to control under the new law.

Further details contained in despatch No. 1431 today’s pouch.16

Please notify Department of Commerce.

Neville
  1. Not printed.↩