894.032/171
The Ambassador in Japan (Grew) to the Secretary of State
[Received August 23.]
Sir: On July 23, 1937, the seventy-first session of the Japanese Diet convened. This is a session required by the 45th article of the Japanese constitution, which states that when the House of Representatives has been ordered to dissolve, members shall be caused by imperial order to be newly elected, and the new House shall be convoked within five months from the day of dissolution. The previous House was dissolved at the close of March by the Hayashi Cabinet, and the present seventy-first session is the first convocation of the membership chosen by the general election of April.
Organizing activities occupied the first days. On July 25 the Emperor formally opened the session. The Cabinet had announced that the session would be for two weeks, which expires on August 8.
The seventy-first session thus far has uncovered no surprises, and no surprises are expected in the remaining days. The state of affairs in China has dominated the discussions, which have confirmed the view that there exists no body of opinion opposed to the prevailing belief that, failing a modification of Chinese attitude, resort to force by Japan is justified. Addresses of Government leaders, and the reaction to such addresses, have served as an important index to Japanese policy. Secondly, the session has given favorable consideration to a number of large appropriations, dominantly for the China incident. Thirdly, a number of Government bills have been submitted, though not yet acted upon.
I. Addresses by Government leaders.
On July 27 Premier Konoe delivered his opening address to the seventy-first session of the Diet and asked for support in the national [Page 343] emergency; stated that the Government is prepared to carry out reforms where reforms are needed, accomplishing them one by one; and explained that bills ready for presentation to this Diet, following so closely on formation of his Cabinet, must of necessity be few. He expressed regret for the north China incident, said that the Japanese Government has been compelled to make an important decision with regard to it, asserted that Japan’s object is the preservation of peace in eastern Asia, spoke on behalf of national defense measures, a comprehensive national economic plan, and the conception of Japan and Manchuria as a single unit, deferred the question of administrative, parliamentary and educational reform, and announced that a bill is being submitted to provide for a separate department of health and social affairs. He said that the present crisis will lead to greater heights of power and prosperity. Text of the address is given in translation in enclosure.61
In replying to an interpellation in the House of Peers on July 28 the Premier defined social justice as a state under which all persons can earn a living, and defined international justice as a state of fair distribution of territory and natural resources.
Foreign Minister Hirota also delivered an address to the Diet on July 27. The translation supplied by the Foreign Office is embodied in enclosure 2.62 In referring to relations with China Mr. Hirota spoke of the necessity of harmony between Japan, “Manchukuo”, China, and the Soviet Union; in connection with anti-Japanese sentiment in China mentioned past recalcitrance of the Nanking Government in negotiations with regard to it; alluded to Japan’s policy of stopping the communist invasion of the Orient; repeated that Japan desires to settle the north China incident by local settlement and without aggravation; pleaded for Chinese reconsideration and faithful execution of the settlement of July 11; asserted that China has it in her hands either to settle the issue or to make it more serious; and declared that Japan is prepared to use all available means which may be called for in the defense of Japanese nationals. With regard to the Soviet Union the Foreign Minister again favored a commission to determine the Manchurian frontier and a commission on border incidents, and in reference to fishery rights made the declaration that it is Japanese policy never to tolerate anything in substance destroying enterprises sanctioned by treaty. In reference to Great Britain he spoke highly of the Chichibu63 visit to London and of an agreement of view between the two Governments concerning the advisability of frank conversations to adjust relations (Mr. Hirota ignored reports of British breaking off of such conversations). His remarks about relations with the [Page 344] United States were in translation as follows: “Japanese-American relations have been of late really good, being marked by ever-growing amity and good will. I am glad to say that the economic mission which visited the United States some weeks ago has by its candid exchange of views with various circles accomplished much toward establishing closer contact between our two nations economically and otherwise.”
The Foreign Minister concluded his address with a discussion of the necessity of expansion of Japan’s export trade. He pledged the Government to furtherance of such commercial interests and to endeavors to insure freedom of trade and free access to natural resources. He also said: “It is gratifying to note the growth of certain tendencies favorable to restoration of the freedom of trade. I desire to take this opportunity to declare the readiness of the Japanese Government to participate heartily in any international undertaking to convert these tendencies into reality.”
The following day, July 28, in response to an interpellation in the House of Representatives, Foreign Minister Hirota made a further statement on the subject of the conversations with Great Britain, as follows:
(Embassy’s translation): “Our Foreign policy, as I stated in my address yesterday, has as its background the maintenance of peace and order in the Far East; and to effect such maintenance close association between Japan, Manchukuo and China is necessary. It is, therefore, greatly to be regretted that the present situation has developed. The fact is that before the situation arose conversations between Japan and Great Britain with regard to Far Eastern questions had made substantial progress. However, even though methods were devised for the rendering of assistance to China by Japan and Great Britain, such methods would be entirely inapplicable in the existing circumstances, and due to the deplorable situation which has arisen the conversations have terminated for the time being.”
To another interpellation in the House of Representatives on July 28 Mr. Hirota said (Embassy’s translation):
“Replying to a request by Dr. Akamatsu for expression of view with regard to the future development of the situation in North China, I may say that the policy of the Government thus far has been to seek settlement locally and to prevent aggravation of the situation. We have had in the past various agreements with Sung Che Yuan and with other Chinese authorities, and if these agreements had been carefully observed peace and order in North China could have been maintained; but unfortunately the Chinese did not carry out their obligations. And the latest reports indicate that disorder has broken out in North China, and anxiety is felt not only for Japanese nationals but for nationals of Western countries as well. In the present state of mind of the people of China, improvement in relations between Japan and China is a matter of extreme difficulty. With reference [Page 345] to the state of feeling in China, it may be stated that of course there has been animosity toward Japan, and from that there is developing a feeling of contempt toward this country. We feel that some method must be devised to urge reconsideration of such an attitude”.
Finance Minister Kaya also addressed the Diet on July 27. He proposed a revaluation of specie reserves of the Bank of Japan, stating nevertheless that the Government has no intention of changing the present foreign exchange value of the yen, one shilling and two pence (Embassy’s telegram No. 215, July 21, 4 p.m.64). He reported that, for the Japanese Empire including colonies, exports during the first 6 months of 1937 were ¥1,602,000,000 and imports ¥2,243,000,000, an adverse excess of ¥641,000,000 which is double the adverse excess of the same period of 1936. He went on to refer to gold shipments and stated that for the future the Government desires to limit the amount of annual gold shipped within the limits of the annual domestic production of gold. He mentioned the striking rise of commodity prices since December 1936 and said that the matter is being referred to the price control commission. He enumerated certain appropriations necessary for the north China incident (which are referred to hereunder).
[Here follow sections on appropriations and bills.]
Respectfully yours,
- For extract of address, see Foreign Relations, Japan, 1931–1941, vol. i, p. 336.↩
- Not printed.↩
- Younger brother of the Japanese Emperor.↩
- Not printed.↩