Office of the Historian

794.00/114: Telegram

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

Tokyo, March 24, 1937—2 p.m.
[Received March 24—7:40 a.m.]

95. Embassy’s 90, March 13, 2 p.m., and previous on Sato’s policies.

1.
Yesterday in reply to numerous interpellations at a meeting of the Budget Committee of the Lower House Sato defined more specifically some of his foreign policies.
2.
Anglo-Japanese relations. Sato said that although the restoration of the Anglo-Japanese alliance64 is being given serious consideration in Japan and in Great Britain, such restoration is difficult because Great Britain is a member of the League of Nations. He refused to state his opinion as to the attitude which Japan should take on the question.
3.
American-Japanese relations. Sato said that the question of exclusion of Japanese immigrants is again being discussed in the United States and that the Japanese Government will endeavor to obtain an advantageous settlement.
4.
Soviet-Japanese relations. Sato said that the border problem is the most urgent issue and that negotiations are proceeding on that question. He said that the Foreign Office has no immediate intention of concluding a nonaggression pact with the Soviet Union.
5.
Sino-Japanese relations. Sato said that economic and cultural cooperation between Japan and China should take priority over political negotiations and that patience must be exercised in dealing with China in the normal course of international relations. He said that as there are special and peculiar conditions [in?] China, different measures than are used in dealing with Central and South China are required in dealing with North China (see paragraph 1 of Embassy’s 86, March 12, 7 p.m.). In reply to an interpellation regarding the East Hopei and Hopei-Chahar administrations, he said that those administrations came into existence under special circumstances obtaining in North China and were not a matter for discussion with Japan, although later they might be discussed in negotiations with [Page 58] China. The interpellator then expressed the opinion that cooperation with China in suppressing the “special trade” (smuggling) in North China is a prerequisite to Sino-Japanese understanding. Sato said that the “special trade” is a matter that concerns the East Hopei régime and is not one that should be discussed with Japan, although Japan will consider it in connection with the problem of Chinese tariffs, as the “special trade” has an important bearing on Japanese trade with China.
6.
Reference paragraph 4 of Embassy’s 90, March 13, 2 p.m. The opposition to Sato appears to be decreasing. Both the Premier and the War Minister yesterday stated in replies to interpellations that although there were points in Sato’s speech of March 11 (Embassy’s 86, March 12, 7 p.m.) which they did not understand or to the phraseology of which they objected, Sato had explained the points and they now accepted the speech as given by Sato. The minor parties have apparently abandoned their resolution of nonconfidence in Sato because of lack of sufficient support and consequently there is now no reason to believe that Sato will not remain as Minister for Foreign Affairs during the life of the Hayashi Cabinet.

Copy to Peiping by mail.

Grew
  1. 1902–21.↩