852.01/295: Telegram

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

540. The press states this morning that, in line with the desire of the Japanese Government to implement the Anti-Communist Pact, [Page 615] consideration is being given to Japan’s recognition of the Franco regime.20

In connection with the negotiations which have been taking place for several months with regard to the new commercial convention between Japan and Italy, there are persistent indications that the possibilities of a trade arrangement among Japan, Germany and Italy are being examined. It has been suggested that such an arrangement would cover only raw and semi-manufactured materials, but this is probably conjecture.

  1. For correspondence concerning the Spanish situation, see pp. 215 ff.