894.24/1575½

Memorandum by the Adviser on Political Relations (Hornbeck)

Mr. Welles requests that the necessary papers be prepared for putting into execution:

1.
A freezing of Japanese and, simultaneously, of Chinese funds;
2.
A prohibition (restriction?) of imports of silk (and other important imports?) from Japan;
3.
A lowering of the specification for octane content of gasoline and a reduction in the qualities of lubricating oils export of which to Japan may be licensed and establishing of a quota for exports of petroleum products based on a period in which the exports were not abnormally large.

Mr. Welles said that he would like to have these papers ready by Monday.94

  1. July 21.