894.00/839: Telegram
The Ambassador in Japan ( Grew ) to the Secretary of State
[Received January 24—11a.m.]
44. 1. Interpellations in the Lower House on the annual addresses of the principal members of the Cabinet were concluded yesterday. Interest naturally was centered largely in the conflict with China and in the relations with foreign countries rising out of the situation in China. The House today took up the budget, and discussion of foreign policies will be continued in committee. Interpellations began yesterday in the House of Peers.
2. The most conspicuous feature of the discussions thus far on foreign policies has been the strong note of dissatisfaction over the expressed desire of the Minister of Foreign Affairs43 to reach settlement with the American and British Governments on the question of the Open Door. On January 21st Arita was asked to explain the position of the Government with regard to (a) establishing relations with China on the basis of the “good neighbor principle”; and (b) economic relations with China. He stated with regard to the first point that Chinese animosity against Japan could be eradicated only [Page 487] if Japan harmonized its actions with its words. He denied that Japan proposed to establish a paramount position: The relationship desired was that existing between equals. He believed that if that relationship could be realized the Chinese would cooperate. He declined to indicate the form which a new Chinese Government should take, as that was a matter for the Chinese themselves to determine, but he felt confident that a strong Government would be established. The Japanese Government has not been in touch with Wang Ching Wei44 but he believed that Wang’s announcements urging need for peace with Japan have created a profound impression not only in China but in the Occident as well. With regard to the second point, he regrets the use of the word “bloc” in connection with the proposed economic association among Japan, China and Manchukuo, but that association has necessarily to be a close one. Such an association, which would take into account national defense needs and economic self-sufficiency, does not conform with existing concepts of the Open Door and consequently the American and British Governments have protested.45 It was the opinion of the Japanese Government that discussion by exchange of notes should be avoided and he had therefore explained Japan’s needs and desires to the Ambassadors concerned but without success. He had emphasized that the various incidents which had arisen were due to military necessity and that with the subsidence of military operations the situations complained of would largely be remedied but the United States and Great Britain point out discrepancies between Japanese assurances and facts and continue to believe that Japan intends to drive the interests of third countries out of China. In his opinion, however, the American and British offers to discuss modification of treaties indicate some appreciation of the existence of a new condition in the Far East.
3. This statement was harshly criticised in subsequent sessions as being too conciliatory. Members stated that the surrender of Japan’s paramount position gained by heavy expenditure of lives and money was unthinkable; that Japan’s honor would not allow Arita either to avoid the establishment of an economic bloc with China or to beguile the United States and Great Britain with assurances that a bloc would not be formed; and that “Shidehara46 diplomacy was liquidated with the Manchuria incident and its reappearance will not be tolerated”.
4. In the course of these debates repeated reference was made to reported American and British plans to impose economic sanctions. [Page 488] The sentiments expressed by members were those of defiance and confidence. The Prime Minister47 yesterday said in this connection: “I was asked whether Japan would submit if economic sanctions were applied by third countries. There is a plan for coping with any economic blockade set up by third countries. Naturally it is hoped that such a situation will not arise but if it should arise some means for dealing with it resolutely will be devised.”
Cipher text to Peiping for repetition to Chungking.