894.00/885: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received December 29—9:57 a.m.]
715. Our 713, December 28, 7 p.m.58 Premier Abe replying at a press conference yesterday afternoon to the recent resolution of Diet members requesting the Cabinet’s resignation, asserted that his Cabinet would not resign because of internal difficulties but would proceed toward accomplishment of its major objective, the settlement of the China incident. While admitting the seriousness of the problems of prices and supply and commodities, he placed the blame largely on the adjustments necessary in changing from a liberal economy to a planned and controlled economy. He stated that the new central government in China will be established early next year.
With regard to American-Japanese relations, the Premier characterized the American Government’s decision to withhold imposition of special taxes and tonnage dues on Japanese commerce as a unilateral temporary measure taken at the discretion of that Government and he pointed out that the United States thereby maintains complete freedom of action. The Cabinet, he said, is considering security measures to be taken should developments under a treatyless period reach the worst possible state, but conversations at the present time are directed toward avoiding this undesirable outcome. He expressed the hope that the present treaty might be revised in such a way as to make it suitable to present conditions. He added that Japan in deciding to reopen the Yangtze does not intend to carry on negotiations on a bargaining basis and did not make the decision as a bait to elicit concessions from third countries. He said that the reopening of the river has been under consideration since last year and that it has always been Japan’s intention to reopen the Yangtze as soon as military exigencies permitted. In view of the impossibility of the revision of the treaty before January 26, he expressed the hope that a temporary suitable arrangement might be achieved.
Cipher text by airmail to Peiping, Shanghai.