894.52/49: Telegram

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

63. 1. The British Ambassador has informed me that the Japanese Foreign Office has accepted the British proposal for the settlement of [Page 820] the perpetual leasehold question a copy of which was transmitted with despatch Number 2240 of February 1.44 The Japanese Foreign Office must obtain approval of the Privy Council which is expected within the next 2 weeks after which notes of acceptance will be exchanged. The British Ambassador also informed me that he believes that the Japanese Foreign Office will shortly approach us asking that American holders accept the same terms.

2. I have consulted one of the larger American holders who informed me that he would be willing to accept the terms of the British proposal and that he would consult other American holders.

3. The Department’s instructions regarding the attitude the Embassy should assume towards the American holders with respect to acceptance by them of the same terms are requested.

  1. Despatch not printed; but see memorandum by the Ambassador in Japan, supra.