Foreign Relations of the United States Diplomatic Papers, 1941, The Far East, Volume IV

711.94/2476

Revised Draft of Proposed “Modus Vivendi” With Japan⁷¹

[Washington,] November 24, 1941.

The representatives of the Government of the United States and of the Government of Japan have been carrying on during the past several months informal and exploratory conversations for the purpose of arriving at a settlement if possible of the questions relating to the entire Pacific area based upon the principles of peace, law and order and fair dealing among nations. These principles include the principle of inviolability of territorial integrity and sovereignty of each and all nations; the principle of non-interference in the internal affairs of other countries; the principle of equality, including equality of commercial opportunity and treatment; and the principle of reliance upon international cooperation and conciliation for the prevention and pacific settlement of controversies and for improvement of international conditions by peaceful methods and processes.

On November 18 the Japanese Ambassador stated⁷² that the Government of Japan is desirous of continuing the conversations with a view to agreeing upon a comprehensive and peaceful settlement in the Pacific area; that the domestic political situation in Japan is acute and urgent; that, in order to give the Japanese Government opportunity further to develop public sentiment in Japan in support of a comprehensive and liberal program of peace throughout the entire Pacific area, such as has been under discussion between our two Governments, it would be helpful if a temporary modus vivendi could be agreed upon to be in effect while the conversations looking to a peaceful settlement in the Pacific were continuing; and the Ambassador suggested that such modus vivendi include as one of its provisions some initial and temporary steps of a reciprocal character in the resumption of trade and normal intercourse between Japan and the United States. On November 20 the Japanese Ambassador communicated to the Secretary of State proposals⁷³ in regard to temporary measures to be taken respectively by the Government of Japan and by the Government of the United States, which measures are understood to have been designed to create an atmosphere favorable to pursuing the conversations which have been taking place. These proposals contain features which, in the opinion of this Government, conflict with the fundamental principles which form a part of the general settlement under consideration and to which each Government has declared that it is committed.

The Government of the United States is earnestly desirous to contribute to the promotion and maintenance of peace in the Pacific area and to afford every opportunity for the continuance of discussions with the Japanese Government directed toward working out a broad-gauge program of peace throughout the Pacific area. With these ends in view, the Government of the United States offers for the consideration of the Japanese Government an alternative suggestion for a temporary modus vivendi, as follows:

Modus Vivendi

1. The Government of the United States and the Government of Japan, both being solicitous for the peace of the Pacific, affirm that their national policies are directed toward lasting and extensive peace throughout the Pacific area and that they have no territorial designs therein.

2. They undertake reciprocally not to make from regions in which they have military establishments any advance by force or threat of force into any areas in Southeastern or Northwestern Asia or in the southern or the northern Pacific area.

3. The Japanese Government undertakes forthwith to withdraw its armed forces now stationed in southern French Indochina and not to replace those forces; to reduce the total of its forces in French Indochina to the number there on July 26, 1941, which number in any case shall not exceed 25,000; and not to send additional forces to Indochina for replacements or otherwise.

4. The Government of the United States undertakes forthwith to modify the application of its existing freezing and export restrictions to the extent necessary to permit the following resumption of trade between the United States and Japan in articles for the use and needs of their peoples:

(a) Imports from Japan to be freely permitted and the proceeds of the sale thereof to be paid into a clearing account to be used for the purchase of the exports from the United States listed below, and at Japan’s option for the payment of interest and principal of Japanese obligations within the United States, provided that at least two-thirds in value of such imports per month consist of raw silk. It is understood that all American-owned goods now in Japan, the movement of which in transit to the United States has been interrupted following the adoption of freezing measures, shall be forwarded forthwith to the United States.

(b) Exports from the United States to Japan to be permitted as follows:

(i) Bunkers and supplies for vessels engaged in the trade here provided for and for such other vessels engaged in other trades as the two Governments may agree.

(ii) Food and food products from the United States subject to such limitations as the appropriate authorities may prescribe in respect of commodities in short supply in the United States.

(iii) Raw cotton from the United States to the extent of $600,000 in value per month.

(iv) Medical and pharmaceutical supplies subject to such limitations as the appropriate authorities may prescribe in respect of commodities in short supply in the United States.

(v) Petroleum. The United States will permit the export to Japan of petroleum upon a monthly basis for civilian needs, the proportionate amount of petroleum to be exported from the United States for such needs to be determined after consultation with the British and the Dutch Governments. It is understood that by civilian needs in Japan is meant such purposes as the operation of the fishing industry, the transport system, lighting, heating, industrial and agricultural uses, and other civilian uses.

(vi) The above stated amounts of exports may be increased and additional commodities added by agreement between the two governments as it may appear to them that the operation of this agreement is furthering the peaceful and equitable solution of outstanding problems in the Pacific area.

5. The Government of Japan undertakes forthwith to modify the application of its existing freezing and export restrictions to the extent necessary to permit the resumption of trade between Japan and the United States as provided for in paragraph four above.

6. The Government of the United States undertakes forthwith to approach the Australian, British and Dutch Governments with a view to those Governments’ taking measures similar to those provided for in paragraph four above.

7. With reference to the current hostilities between Japan and China, the fundamental interest of the Government of the United States in reference to any discussions which may be entered into between the Japanese and the Chinese Governments is simply that these discussions and any settlement reached as a result thereof be based upon and exemplify the fundamental principles of peace, law, order and justice, which constitute the central spirit of the current conversations between the Government of Japan and the Government of the United States and which are applicable uniformly throughout the Pacific area.

8. This modus vivendi shall remain in force for a period of three months with the understanding that the two parties shall confer at the instance of either to ascertain whether the prospects of reaching a peaceful settlement covering the entire Pacific area justify an extension of the modus vivendi for a further period.

[Annex]

Strictly Confidential,
Tentative and Without
Commitment

[Washington,] November 24, 1941.

Outline of Proposed Basis for Agreement Between the United States and Japan

[Here follows text of Section I as printed under date of November 22 on page 637.]

Section II: Steps to be Taken by the Government of the United States and by the Government of Japan

The Government of the United States and the Government of Japan propose to take steps as follows:

1. The Government of the United States and the Government of Japan will endeavor to conclude a multilateral non-aggression pact among the British Empire, China, Japan, the Netherlands, the Soviet Union, Thailand and the United States.

2. Both Governments will endeavor to conclude among the American, British, Chinese, Japanese, the Netherlands and Thai Governments an agreement whereunder each of the Governments would pledge itself to respect the territorial integrity of French Indochina and, in the event that there should develop a threat to the territorial integrity of Indochina, to enter into immediate consultation with a view to taking such measures as may be deemed necessary and advisable to meet the threat in question. Such agreement would provide also that each of the Governments party to the agreement would not seek or accept preferential treatment in its trade or economic relations with Indochina and would use its influence to obtain for each of the signatories equality of treatment in trade and commerce with French Indochina.

3. The Government of Japan will withdraw all military, naval, air and police forces from China (excluding Manchuria—see separate provision, paragraph six) and from Indochina.

4. The Government of the United States and the Government of Japan will not support—militarily, politically, economically—any government or regime in China other than the National Government of the Republic of China with capital temporarily at Chungking.

5. Both Governments will give up all extraterritorial rights in China, including rights and interests in and with regard to international settlements and concessions, and rights under the Boxer Protocol of 1901.

Both Governments will endeavor to obtain the agreement of the British and other governments to give up extraterritorial rights in China, including rights in international settlements and in concessions and under the Boxer Protocol of 1901.

6. The Government of the United States will suggest to the Chinese Government and to the Japanese Government that those Governments enter into peaceful negotiations with regard to the future status of Manchuria.⁷⁵

7. The Government of the United States and the Government of Japan will enter into negotiations for the conclusion between the United States and Japan of a trade agreement, based upon reciprocal most-favored-nation treatment and reduction of trade barriers by both countries, including an undertaking by the United States to bind raw silk on the free list.

8. The Government of the United States and the Government of Japan will, respectively, remove the freezing restrictions on Japanese funds in the United States and on American funds in Japan.

9. Both Governments will agree upon a plan for the stabilization of the dollar-yen rate, with the allocation of funds adequate for this purpose, half to be supplied by Japan and half by the United States.

10. Both Governments will agree that no agreement to which either is party shall be interpreted by it in such a way as to conflict with the fundamental purpose of this agreement, the establishment and preservation of peace throughout the Pacific area.

11. Both Governments will use their influence to cause other governments to adhere to and to give practical application to the basic political and economic principles set forth in this agreement.

71. See footnote 63, p. 635. Copy of another draft dated November 24 (not printed) is in FE Files, Lot 244.
72. See memorandum of November 18, 1941, Foreign Relations, Japan, 1931–1941, vol. ii, p. 744.
73. Ibid., p. 755.
75. Dr. Hornbeck placed paragraph 6 in brackets in his copy of this draft document, with a marginal notation as follows: “Leave this to be brought up by the Japanese” (FE Files, Lot 244).