711.94/2113
Memorandum of Conversation, by Mr. Frank A. Schuler, Jr., of the Division of Far Eastern Affairs54
Mr. Hellman55 was received by Mr. Schuler at the request of Mr. Hornbeck’s office. Mr. Hellman stated that he had called at the Department about a year and a half ago56 and had discussed with Mr. Hornbeck and other officials of the Department the question of extending credits to American companies doing business with Japan. Mr. Hellman asked whether there had been any change in the situation. To his own way of thinking, the situation had become acute, particularly since the signing of the Russo-Japanese neutrality pact.57 Mr. Schuler stated that there had been no change in the policy of the United States Government toward Japan, that with respect to the [Page 810] Russo-Japanese neutrality pact Mr. Hellman would no doubt recall the Secretary’s statement of April 1458 in which he said among other things that the significance of the Russo-Japanese pact could be overestimated; that the agreement would seem to be descriptive of a situation which had already existed for some time; and that it came as no surprise to this Government. Mr. Hellman declared that the bank had requests from time to time from Japanese banks for the extension of credit facilities, but that it had as a general rule refused to extend any credit. He said that his bank was extending short-term credits to American exporters to Japan on a limited number of commodities and was particularly interested in knowing whether the Department contemplated any embargoes on exports to Japan.
With respect to the first point Mr. Hellman was told in reply, that while there was no law or regulation which prohibited or restricted American banks in the matter of loans or credits to Japan, the Department had, when approached by American business men on this question, as Mr. Hellman was undoubtedly already aware, expressed the hope that American business would be guided by consideration of the effect upon American interests in general in the Far East of the granting of such credits, looking at the question from a long-range point of view, and having in mind Japanese policies and actions. Mr. Schuler added that it was the Department’s understanding that there was a general tendency to shorten the terms of any such credits both here and abroad and that such tendency was in line with the attitude which the Department hoped would be followed by American business men and bankers.
With respect to the second point Mr. Schuler stated that he was not aware of any steps being taken at the present to place an embargo on exports to Japan. He wished to point out at the same time that with the intensification of this country’s efforts toward national defense it was obvious that more and more commodities which were normally exported abroad would be needed for ourselves; moreover, that pledged as we are to give every aid to the democracies,59 many of the commodities which would normally enter our export trade with Japan might conceivably be needed in other directions.
Mr. Hellman declared that he was in full accord with the Government’s foreign policy; that until about a year ago certain aspects of American foreign policy, particularly in regard to Japan, had not been entirely clear to him, but that since Japan had joined the Axis he had realized that any aid that we might extend to Japan meant aid to Germany.
[Page 811]Mr. Hellman concluded with the statement that he thought that all exports would eventually have to come under Government control, to which Mr. Schuler made no comment.
- Initialed by the Chief of the Division (Hamilton).↩
- F. J. Hellman, Vice President of Wells Fargo Bank and Trust Company, San Francisco.↩
- See memorandum by the Assistant Chief of the Division of Far Eastern Affairs, September 18, 1939, Foreign Relations, 1939, vol. iii, p. 545.↩
- See telegram No. 763, April 13, 11 p.m., from the Ambassador in the Soviet Union, p. 944.↩
- Foreign Relations, Japan, 1931–1941, vol. ii, p. 186.↩
- For the Lend-Lease Act approved March 11, 1941, see 55 Stat. 31.↩