693.002/388: Telegram

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

480. Department’s 262, October 15, 7 p.m.

1.
The British Ambassador informs me that he called this morning on the Vice Minister for Foreign Affairs and asked whether consideration is being given by the Japanese Government to revising the original Japanese proposal to the extent of making available to the “Peace Preservation Committee” surplus funds in the Yokohama Specie Bank. The Vice Minister replied that prior to the present hostilities the surplus customs revenues of North China were being handed over to the Hopei–Chahar Council and that there was a feeling that such surplus funds should now be made available to the new Committee. The Vice Minister said that he would look into the matter further and would discuss it again with Craigie in a day or two.
2.
As there is some doubt in Craigie’s mind as to whether or not his Government wishes to have him insist on point (b) set forth in telegraphic instructions to him quoted in Department’s 259, October 12, 4 p.m., he requests that I make no further representations until he has talked again with Horinouchi. As we have already urged the Foreign Office to give favorable consideration to the arrangement proposed by the British Embassy and as we have also made it clear that we might propose an additional clause which would secure the surplus funds in the Yokohama Specie Bank we are making no further approach for the time being to the Foreign Office.
Grew