711.942/544: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received February 2—8:40 a.m.]
73. In reply to interpellations in the Diet yesterday regarding the status of treaty negotiations between Japan and the United States, the Foreign Minister is reported to have stated inter alia as follows:
“There has been some misunderstanding among foreign countries in regard to the intimate relations between Japan, Manchukuo and China in the economic field, relations closer in the same field than those with foreign countries. …22 It hardly needs to be explained that establishment of particularly close economic relations between these three countries does not mean the ousting of the economic activities of foreign countries. Not only that, but we believe that there still remain tremendously broad fields of economic expanses for foreign countries. In China, however, foreign rights and interests have been affected in various ways by military operations. These various effects which have resulted because of strategical considerations have been confused with Japan’s policy in regard to the new order in East Asia. For example, when the Japanese Government explains the economic relations obtaining between Japan, Manchukuo, and China to foreign countries, these countries claim that what actually takes place is not in accordance with this Government’s declarations. While we must continue to explain Japan’s policy to foreign countries, we must also endeavor promptly to solve various problems in China as strategical demands relax and other conditions permit . . . .22 So long as the United States does not understand fully Japan’s true intentions with respect to the new order, the conclusion of a new treaty would appear to be difficult. Therefore, while our every effort [is made?] to obtain the understanding of the United States to the end that a new treaty is concluded, I think this will be a matter of time. As stated by Mr. Ogawa, the treatyless situation will cause considerable uneasiness. However, I think that its aggravation can be avoided if the American and Japanese Governments give some consideration to the matter. In this connection it is of the utmost importance that Japan as well as the United States deal with this uneasy situation calmly and circumspectly …”22
By air mail to Shanghai and Peiping. Shanghai please repeat to Chungking naval radio.