611.9431/140: Telegram

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

649. Department’s 351, December 16, 3 p.m.14

We have, on several occasions when discussing at the Foreign Office Japanese exchange control and regulation of imports and exports, [Page 807] pointed out that these measures are not in harmony with American efforts to liberalize trade. We expressed doubt whether there would be any basis for a trade agreement with the United States so long as any tariff concession which Japan might make could be made valueless by exchange and import control.
Yoshizawa,17 with whom these discussions were held, fully understands the position and in fact indicated that the Japanese Government is not giving active consideration to proposing a trade agreement with the United States. Nevertheless we will take an early opportunity to clarify the situation.
  1. Not printed.
  2. Seijiro Yoshizawa, Director of the American Affairs Bureau, Japanese Foreign Office.