693.001/390: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received November 16—8:11 p.m.]
735. Our 732, November 16, 3 p.m.
1. The Minister for Foreign Affairs has now made an appointment to see me at 3:30 o’clock Monday afternoon, November 21.
2. My British colleague had an hour and a half with the Minister for Foreign Affairs this afternoon to discuss the general subject of Japan’s policy in China with special reference to foreign interests, and since this talk probably presages the general line that the Minister will follow in his conversation with me on Monday I am cabling below in full Craigie’s telegraphic report of his interview which he will send to London tonight textually as follows.
3. “16th November 1938. I had a long conversation this evening with Minister for Foreign Affairs in regard to Japanese proposal for a ‘new order’ for China. His Excellency began by saying that he would prefer to reserve any official observations until after the despatch of the Japanese reply to the American note October 6th but he was ready to give me quite frankly an outline of his personal views in what should be regarded as an unofficial conversation.
At the outset of the conversation I referred to the specific assurances of respect for British rights and interests and for the principle of equal opportunity which I had received from His Excellency’s predecessors and said that the indications that these promises were not to be made good were naturally creating a most unfavorable impression in my country. I hoped that His Excellency would enable me to correct this impression. Mr. Arita replied that it was necessary to recognize that a complete change had come over the situation in China and that assurances given earlier might not be wholly applicable to the new situation which had developed. Moreover, public opinion in Japan now insistently demanded a policy based on the proposed tripartite bloc. I observed that the assurances given had been without reservation or limit of time and that in my opinion the policy of restraint and neutrality pursued by His Majesty’s Government must to some extent at least have been determined by reliance on the categorical assurances we had consistently received. I felt that this was an aspect of the question which the Japanese Government should very carefully consider particularly in connection with the answer which [Page 88] the Japanese Government were preparing to the American note. Mr. Arita replied that these considerations were being borne in mind. Subsequent talk was discussive [discursive?] but may be summarized as follows.
- (a)
- Minister for Foreign Affairs strongly denied suggestion Japan aimed at the eventual exclusion of foreign trade from China. Such a scheme would in any case be quite impracticable even if it were desired by Japan.
- (b)
- His Excellency repeated his earlier statement in regard to possibility of economic boycott or sanctions against countries having slender economic resources. He instanced the powerful economic groups already in existence such as the British Empire, the United States of America (with which he linked Latin-America) and Russia maintaining that the only way to secure some measure of economic appeasement in the world was that the smaller countries should also be grouped into similar economic blocs.
- (c)
- On the questions of the ‘Open Door’ and equality of opportunity, he felt that it was unfair that these principles should apply to China only. It was time that in this respect China should be put on an equality with other powers. He hoped that the powers interested in China would not take too narrow or technical a view of this matter but would take cognizance of the economic changes in and needs of the Far East and endeavor to settle all these matters in a practical manner. Japanese Government did not intend to demand a modification of the existing treaty position but they hoped that other powers would come forward with proposals which, while taking due account of Japan’s needs, would nevertheless satisfy their own requirements in China.
- (d)
- As regards our existing grievances against actions of the Japanese naval and military authorities in China, Mr. Arita seemed inclined to recognize the force of my argument that such actions, by creating a deep seated resentment and suspicion in interested foreign countries, were not calculated to predispose those countries in favor of what he had termed a ‘practical’ solution of the economic problem. His Excellency said that he was doing all in his power to meet our desiderata and I drew his attention particularly to the important questions of the navigation on the Yangtze and restoration of the northern Settlement area.
In the course of this long conversation I furnished the obvious replies to many of Minister for Foreign Affairs’ arguments. In particular I drew attention to the dangers inherent in the system of economic blocs even from Japan’s point of view since, by following the mirage of a monopolistic system within a Japan–China–Manchukuo bloc, she might be risking the realities of her existing very profitable trade with the other economic entities he had mentioned. I also strongly denied that the principles of the ‘Open Door’ and equality of opportunity was applied to China only. After mentioning the equality of opportunity available on our own market, the principles of the most-favored-nation on which our commercial treaties were based and the absence of any trade discrimination against Japan [Page 89] in those countries which provided her best markets, I expressed personal opinion that the British Government would not wish to hold a free and independent China to any particular economic system of which she might disapprove, but proposals from a China, of which one-third was controlled by Japan and the fruits of which were intended primarily to benefit Japan, would obviously receive a very different reception.
In leaving I thanked His Excellency for his frank statement and we both agreed that only good could come of such talks designed to elucidate exactly what was in the minds of the Japanese Government on this important question.” Craigie telegram ends here.
4. Craigie saw me immediately after his conference with the Minister for Foreign Affairs this afternoon and in describing the interview said that he felt encouraged thereby because it at least indicated a desire on the part of the Japanese Government to reach some practical and reasonable solution of the difficulties with the powers. I pointed out to Craigie the utter fallacy of the Minister’s observation that the principle of the Open Door was being made to apply only to China and cited as examples a variety of instances where controversy over this very principle had arisen in times between Great Britain and the United States, now fortunately largely allayed. Craigie for his part was impressed with the Minister’s suggestion that other powers should come forward with proposals for revising the present treaty position, Arita obviously having tacitly in mind the Nine Power Treaty.
5. I trust that the foregoing report may prove useful to the Department as preliminary material in commencing to draw up practical observations or instructions for guidance in my conversation with the Minister for Foreign Affairs on Monday which I hope can be cabled me at latest by Sunday noon in Washington. On the other hand, if the time proves to be too short, I can merely listen to the Minister’s remarks without immediate rebuttal and report them to Washington for subsequent instructions.
No repetition.