793.94/9136: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
Tokyo, August 3, 1937—5
p.m.
[Received August 3—7:05 a.m.]
[Received August 3—7:05 a.m.]
244. My No. 239, July 31, 5 p.m.
- 1.
- By direction of the War Department the Military Attaché of the Embassy is today telegraphing his estimate of the North China situation. I have read his report and have expressed to him my concurrence.
- 2.
- The Naval Attaché was informed today at the Navy Department that contrary to newspaper reports of the visit of the Commander of the Japanese Third Fleet on the Chinese Navy Minister, the Commander did not threaten arbitrary action in case of further anti-Japanese demonstration in Central and North China; that no ships or landing reenforcements have been sent to China; and that of the three Japanese destroyers which engaged the Chinese land forces at Taku on July 29 two destroyers were based on Port Arthur and the third destroyer belonged to the Third Fleet.
- 3.
- The Cabinet yesterday approved provisional increase for one year of the income tax and several other taxes, the increase to yield an additional revenue of yen 102 million to be applied to the expenses of military operations in North China. In addition to supplementary estimates of about yen 105 million already appropriated for military expenses in North China it is understood that there is being presented to the Diet a further supplementary budget of yen 300 million for military expenditures in Manchuria and in North China.
Repeated to Nanking.
Grew