693.002/532: Telegram

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

76. Your 133, February 25, 8 p.m., containing in its penultimate paragraph six points outlined by the British Government as the basis for representations by the British Ambassador.

The Department notes from your 137, February 27, 4 p.m., and 138, February 28, noon,73 that the British Ambassador has made the representations above referred to, that the Japanese have replied, and that discussions are in progress.

The following comment upon the six points is offered for your guidance in discussions with your British and French colleagues and, as the situation develops, in possible further approaches by you in your discretion to the Japanese authorities:

With regard to numbered points 1 and 2, the Department would approve endeavors to obtain from the Japanese Government assurances of the character described.

With regard to points 4 and 5, the Department notes that the Japanese are giving these points consideration but are asking that they not be insisted upon as a part of the proposed arrangement. In regard to point 4, the Department would approve efforts to obtain from the Japanese assurances of the character described, as indicated in the Department’s 339, December 12, 3 p.m., to you.74 In regard to point 5, the Department would also approve efforts to obtain assurances from the Japanese in regard to the observance of customs requirements for Japanese goods imported into China, as indicated in the Department’s 109, February 3, 7 p.m., to Shanghai, which was repeated to you, and in the Department’s 42, February 5, 3 p.m. to you.

With regard to point 3, the Department’s attitude is, as indicated to the American Consul at Shanghai in Department’s 86, January 29, 4 p.m., that the American Government is not prepared to participate officially or to nominate an official to participate in an arrangement for the allocation of foreign loan quotas. If the assurances covered in points 1 and 2 are obtained and faithfully observed, it would appear that the general objectives of point 3 would be attained.

With regard to point 6, the Department’s position was covered in its telegram to you, No. 31, January 30, 1 p.m., and in the Department’s telegram to Shanghai No. 116, February 5, 4 p.m. (which Shanghai was asked to repeat to you), indicating that the American Government regards the Government of China as the only authority which can legally cause a revision to be made in the Chinese customs tariff and [Page 667] that the Department does not wish to proffer views in regard to the suggested reintroduction of the 1931 tariff.

Repeated to Shanghai.

Hull