893.51/67366/8: Telegram
The Secretary of State to the Acting Secretary of State
[Received 7:16 p.m.]
8. Your 13, December 2. I cannot of course pass upon the finality of any commitments which may have been taken towards the Chinese Government.
My judgment remains that it is unlikely that the arrangement would be accepted by American opinion as an isolated commercial transaction and Japanese Government circles will certainly not so regard. It probably will impede any neutrality legislation if it is done. We should be clearly prepared to deal with the grave possible consequences if the Japanese Government should decide to retaliate and I believe it important that this aspect of the matter as set forth in the memorandum presented to the President again be further considered.