804.24/1479½
Memorandum of Conversation, by the Assistant Secretary of State (Acheson)
Mr. Butler and Mr. Hall called on me at their request. Mr. Hall stated that the Embassy had received a telegram from London regarding the economic measures which they expected to put into effect against Japan and stated that the British Government had recommended to the Dominions that a full freezing of Japanese and Chinese assets should be instituted. The Government was still awaiting replies from the Dominions but Mr. Hall had no doubt that assent would be given. He said that the British Government had taken up with the Netherlands Government, the Belgian Congo, the Free French authorities the matter of instituting similar action.
I asked whether, as administered by the British, freezing control would carry with it control over exports and imports, and he said that it would. I asked on what basis the British would be prepared to permit exports and imports. He replied that he had understood from my earlier conversation with him that we were considering specific licenses for exports to equal strategic materials which it might be necessary for us to obtain from Japan, and that he understood that the British Government would be prepared to operate on the same basis. He also understood from me that it was our intention at the outset not to disturb the existing export controls from the Philippines and that it would be the British intention to adopt the same principle so far as Malaya was concerned.
In accordance with instructions from the Acting Secretary, I stated to Mr. Hall that the exact situation in Indo China was still not clear to this Government, and that the time table for putting restrictions into effect by this Government and the order and extent of the restrictions would depend upon the facts as they developed. I warned him [Page 842] that my prior conversation with him was not to be interpreted as meaning that this Government would put all the controls into effect simultaneously or immediately, but that we would give him ample notice before taking any action and would inform him of the action proposed to be taken. He said that he would appreciate this very much since this would give an opportunity for the British Government to communicate with the Dominions.
Mr. Butler asked me whether the conference between Mr. Welles and the British Ambassador had thrown any new light on the situation. I said that Mr. Welles had informed me that it had not; that Mr. Welles would make an appointment to discuss the matter with Mr. Butler on Thursday, July 24.