611.9431/129a: Telegram

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

105. The Department would appreciate your views upon the desirability of acquainting the Japanese Government informally with this Government’s concern over the reported intention of the Japanese Government to establish stricter measures of import control through exchange restriction, and of indicating that should such action be taken it would be a source of disappointment to this Government, which is seeking to extend its program of removing trade barriers through the negotiation of reciprocal trade agreements and which considers that exchange control measures, wherever adopted, tend to prevent trade expansion and often lead to a contraction of trade.

If you consider it desirable that the proposed intimation to the Japanese Government be given, the Department purposes to instruct you to make an approach to the Foreign Office and at the same time an approach would be made to the Japanese Ambassador here.