793.94112/334: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received March 7—9:21 a.m.]
157. 1. The Minister for Foreign Affairs has sent me through confidential but official channels an oral message as follows: not only is he extremely occupied with daily attendance at the plenary and committee meetings of the Diet, but he believes that it would be wise, in order to avoid undesirable speculation on the part of the press, to defer meeting me until the Diet session comes to an end probably before the beginning of next month. He assures me that, although there has been a change of Cabinet since I had my conversations last year with Admiral Nomura, there has been no change in the Japanese Government’s policy of respecting the rights and interests of third powers in China. With particular reference to the reopening of the Yangtze River, he regretted that the date originally fixed for that event has come and gone and 3 weeks have since elapsed, but this delay is due in large part to certain unforeseen causes. It had been found necessary for various reasons that he and the Minister of War declare in the Diet that the undertaking to reopen the Yangtze was unilateral in character and could therefore be withdrawn if requirements of the military situation should make such withdrawal necessary, but stating that Mr. Arita wished me to understand that preparations for the reopening of the river are being carried out as rapidly as possible.
2. “I understand from an excellent source that the principal difficulty in the way of reopening the river is the question of disposing of the Japanese military notes. Our informant said that such notes, now outstanding, amount to about 100 million yen and that funds are not [Page 508] available for their conversion into currency, equally acceptable to Chinese, Japanese and third party interests, which would be necessary for trade following the reopening of the Yangtze area.”
3. The second paragraph of this telegram is being repeated to Shanghai, Peiping and Chungking for such comment as those offices may desire to make.