811.04418/514

Memorandum of Conversation, by the Under Secretary of State (Welles)

The Minister of the Netherlands called to see me this morning at his request. The Minister said that his Government was greatly disturbed by the situation with regard to the neutrality legislation here and that while, obviously for reasons of propriety, he was making no official inquiry, nevertheless it would be a very great help to him in guiding his Government if I would tell him in a personal way what the situation really was. He stated that under present conditions the Netherlands in time of emergency would be unable to obtain any material for their national defense from the United States because undoubtedly, by reason of the wording of the neutrality act, Germany would declare war upon any of the smaller European powers which might be obtaining, as neutrals, war materials from the United States in order to shut off that source of supply.

I replied to the Minister that, of course, the views of the Executive were well known to him and that they had been set forth in detailed and clear form in the communications addressed by the Secretary of State to the two appropriate committees of the Congress on May 27, last. I said that it was too early for me as yet to give him any indication as to what the legislative situation might be but that the Executive had under consideration certain steps as the result of which the views of the Administration would be emphasized and further clarified for the benefit of the Congress and of the American people as a whole and that it was only after those steps had been taken that I thought the legislative situation would be sufficiently clear to permit me to have any positive idea as to what the outcome might be.

The Minister then stated that his Government had just informed him by telegram that it had received information that the Japanese [Page 669] Government had suggested to the Government of the United States that both powers jointly guarantee the neutrality of the Philippines. His Government was very much interested in this report because of its bearing on the Dutch East Indies. I told the Minister that no such official communication had been received by this Government from the Japanese Government and that it seemed to me highly improbable that any such communication would in fact be made.

S[umner] W[elles]