711.94/2362: Telegram
The Consul at Osaka (Allison) to the Secretary of State
[Received October 14—1:40 p.m.]
The news of the despatch of three Japanese ships to the United States was received in Osaka business and financial circles with considerable pleasure. Prices on the Osaka share market rose appreciably this morning and foreign businessmen with important Japanese contacts have reported that there is prevalent an optimistic feeling to the effect that Japanese-American relations are at last on the mend. In spite of the report in the Japanese press that these ships would carry no freight there is a strong belief that some arrangement will be reached whereby it will be possible for them to bring back a certain amount of goods. One cotton merchant told me his Japanese partner stated that after space was provided for industrial and military materials there would probably be room for some cotton also. There are reports too that inquiries for large amount of raw silk have recently been received from America, it is believed that this display of optimism is the result of wishful thinking on the part of Osaka businessmen to whom the freezing order has been a real blow and is also indicative of the genuine hope of many of them that trouble with the United States may be averted. That this attitude is not unanimous is evident from the fact that the Osaka Mainichi continues to feature anti-American articles noted for their insulting attacks on American policy and leaders, particularly the President, the latest of which appeared yesterday morning. The Jiji also published an editorial Sunday which reiterates the now familiar statement that American and British policy towards Japan consists of economic pressure and military encirclement.