693.002/509: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
Tokyo, February 14, 1938—7
p.m.
[Received February 14—10:17 a.m.]
[Received February 14—10:17 a.m.]
106. Department’s 58 of February 13, noon.63
- 1.
- In our draft aide-mémoire to the Japanese Foreign Office we are including the sentence “Mr. Grew is aware of the character of certain proposals recently made by the Japanese authorities at Shanghai to the Commissioner of Customs for a settlement of the customs problem.” (See telegram above cited.) We are also including the phrase “on an equitable and unconditional basis”. (See Department’s 37 of February 3, 9 p.m.)
- 2.
- When we showed the draft to the British Ambassador this afternoon he stated that the inclusion of the above sentence and phrase would prejudice the British position as he thought that it would convey to the Japanese authorities the idea that after desired assurances were obtained the Japanese would feel free to work out a plan which would not provide for full payment of the loan and indemnity services and would thereby leave the way open for the Japanese to scale down loan and indemnity payments in accord with decreased revenues.
- 3.
- The British Ambassador stated that without our backing of the British view the “whole thing would be lost”.
- 4.
- The British Ambassador also asked if he could be informed in confidence why we did not wish to support the British plan rather than to seek further assurances along the lines we propose to follow.
- 5.
- In view of the British objection we are holding representations in abeyance for the present. Please inform us if and when the Department now desires that action be taken.
Repeated to Shanghai.
Grew