894.00/706: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received March 5—9:48 a.m.]
77. 1. In my initial talk with the new Foreign Minister today, Mr. Sato expressed regret that he had had no direct experience in [Page 35] Japanese-American affairs but he feels that our mutual relations must be largely influenced as in the case of other countries by Japan’s relations with China. The Minister therefore proposes first of all to study the Sino-Japanese situation with a view to bringing about a marked improvement in those relations and having especially in mind the effect of such an improvement on Japan’s relations with the rest of the world.
2. The Minister is perhaps unduly optimistic with regard to the possibility of achieving so desirable a purpose without eventually embroiling himself with certain elements of the military, yet on the other hand the policy which he envisages would appear to coincide with the general aim of the Hayashi Government already enunciated and almost certainly must reflect the talks which he has already had with his colleagues in the Cabinet.
3. Judging by articles in the Japanese press analyzing the Sian incident thoughtful Japanese recognize that any realignment in China which might now succeed the present Nanking Government must be more hostile to Japan and an unprovocative attitude toward Nanking is therefore wise. Furthermore, the aggressive policy and tactics recently pursued by Japan in China have signally and ignominiously failed to produce desired results. Sato’s remarks to me would appear to substantiate our belief that the Cabinet recognizes the present need for a more moderate course of procedure.
4. I know Sato fairly well personally and believe that our relations will be of the best.
Repeated to Peiping.