711.94/2119: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

717. For the Secretary and Under Secretary. 1. We hear from a trustworthy Japanese that an American newspaper is reported yesterday [Page 207] to have published the terms of a plan designed to adjust Japan’s relations with the United States which was said to have been laid before the American Government by private Japanese in the United States. Our informant said that press despatches reporting this story had been suppressed by the Japanese censor but that he had heard that the terms were substantially as follows: (a) Trade relations between the United States and Japan to be stabilized; (b) Japan to be assured of supplies from the Netherlands East Indies of essential materials; (c) United States to mediate between Japan and China; (d) unless Germany is “attacked” by the United States, Japan is to refrain from participating if war should occur between the United States and Germany.

2. Our informant stated that there is reason to believe that Colonel Iwakuro is interested in some plan of this kind. Our informant had just seen the War Minister and had urged the prime importance of some constructive effort being made by Japan before May 27, when the President is scheduled to deliver an important address, and the War Minister had replied that the informant could rest assured that something was being done. He had also talked to the Privy Seal on this subject and the latter had remarked smilingly that Iwakuro had apparently become extremely pro-American since his arrival in the United States.

Grew