Foreign Relations of the United States Diplomatic Papers, 1935, The Far East, Volume III

894.797/15: Telegram

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

Tokyo, December 19, 1935—5 p.m.
[Received December 19—9:10 a.m.]

247. Department’s 882, November 18, 1935, proposed Japanese automobile legislation.

1. The Embassy is informed that General Motors are negotiating with Japanese interests in regard to future manufacture in Japan. The General Motors men here are not in a position to disclose the exact nature of the proposition worked out by representatives of General Motors and the Japanese interests but it appears to have been formulated to some extent in anticipation of the proposed legislation. It has not yet received the approval of General Motors, the Japanese principals or the interested Japanese governmental authorities. The Embassy has suggested to the local manager of General Motors, who is sailing to-day for the United States, the desirability of the Company taking the Department fully into its confidence.

2. It is my opinion that this plan of General Motors, even if carried into effect, will not seriously weaken our basic treaty position and therefore I propose that the Embassy first take up the matter informally with Kurusu²⁰ in an exploratory way, requesting information in regard to details of the draft legislation and stating that our Government might consider such legislation as violative of treaty rights.

3. Does the Department approve?

Grew

20. Saburo Kurusu, Chief of the Bureau of Commercial Affairs, Japanese Foreign Office.