761.948/126: Telegram

The Ambassador in the Soviet Union (Bullitt) to the Secretary of State

198. Tass communiqué states that on Monday 13th Litvinov informed Japanese Ambassador in reply to note of Japanese Government of April 14th that “in view of Soviet policy of strengthening friendly relations with Japan and also taking into consideration that in the main the existing convention satisfies the interests of both sides the Soviet Government agrees not to raise the question of reconsidering the fishing convention.”

At the same time Soviet Government declares its readiness “within the framework and on the basis of the existing convention immediately to enter into negotiations in the most friendly manner to regulate various questions arising in the process of the application of the convention in former years with a view to the results of these negotiations being formulated in the form of a prolongation for a certain period of the agreement signed at Moscow by Hirota on August 13, 1932.”

Japanese Embassy states that its Government desires definite and permanent allocation of all fishing lots and the elimination of system of auctions. System of auctions stated to be more beneficial to Soviet Government.

Japanese evidently satisfied with old conversion rate of 32.50 sen per ruble.

My impression is that there will be no great difficulties in negotiations. Policy of Litvinov in Far East continues to be the progressive liquidation of all possible elements capable of causing friction in Soviet-Japanese relations.

Bullitt