894.52/49: Telegram

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

36. Your 63, February 25, 1 p.m.

The terms of the plan of settlement arrived at between the British and Japanese Governments would seem to be less favorable to the leaseholders than the terms which recommended themselves to this Government as constituting an equitable basis of settlement. In view, however, of the fact that British interests involved are substantially greater than American interests, this Government desires to avoid the taking of position which would obstruct conclusive disposal of this long-standing issue. You may, therefore, orally inform the Foreign Office that this Government is prepared to accept settlement on the basis of the proposal presented to the Japanese Government by the British Ambassador in his note of January 14.
For guidance with regard to Embassy’s attitude toward American leaseholders, please see paragraph 4, Department’s telegram No. 138, November 3, 3 p.m.45