693.002/407

Memorandum by the Secretary of State

The British Ambassador came in upon my invitation. I proceeded to give him certain information as to what this government is doing in the Far East in certain respects. I said that he would recall that [Page 891] the latter part of last week we sent a message to the Japanese Government insisting on maintaining the integrity of the Chinese customs organization and arrangements. I then said that since that time we have sent a note to the Japanese Government elaborating on our first representation by pointing out that the Chinese customs organization and arrangements are a growth based on agreements, practices, and other considerations which go back over a period of generations in their economic and historic traditions and significance, and that the United States Government reasserts its interest in this customs situation and its right to be conferred with by those who consider any modification or disturbance of the Chinese customs structure and the parties to it. I stated that with regard to the question of whether the Japanese Government or the Japanese military officials are contemplating running wild, so to speak, by disregarding all international law and order and all rights of other governments and their nations, especially with respect to the customs situation, I was not advised of a sufficient number of facts or circumstances as would lead me to conclude that such a step is imminent on the part of the Japanese, either in Shanghai or other areas; that of course it may be possible that such a lawless outbreak will occur at any time, but I simply had not sufficient facts to warrant the belief that such course is imminent.

I closed the conversation by expressing the earnest hope that our trade program may be gotten through in a mutually satisfactory way as early as possible and that it might well become the basis upon which a restored world order could rest; that it was my understanding that Germany, instead of being displeased at its prospect, is looking forward with the hope that this Anglo-American trade agreement13 will form the basis for a solution of the German and other economic difficulties of a major character. The Ambassador concurred in my views.

C[ordell] H[ull]
  1. For correspondence on this subject, see vol. ii, pp. 1 ff.