761.94/1260: Telegram
The Ambassador in the Soviet Union (Steinhardt) to the Secretary of State
[Received 7:50 p.m.]
238. My 205, February 1, 6 p.m.7 The Japanese Ambassador8 told me last night that the Japanese-Soviet trade negotiations have now been resumed in conjunction with the negotiations for a permanent fisheries convention. He added that political negotiations are [Page 908] “deadlocked” as Matsuoka has thus far declined even to discuss the surrender of the Japanese concessions in the Sakhalin territory. With respect to the trade negotiations, Tatekawa stated that the Japanese Government desires to obtain most-favored-nation treatment and the Soviet Government diplomatic status for what he described as “innumerable so-called commercial representatives” in Japan—a concession which he said the Japanese Government is prepared to make. He also stated that his Government has offered silk and rayon to the Soviet Government but that the latter maintains that it has no need for any substantial amount of those commodities. The Soviet Government, he said, had requested the Japanese Government to build tankers for it but the lack of the essential material made it necessary to refuse this request. At the last conference the Soviets requested rubber and tin and upon being informed that Japan does not possess those commodities, it was suggested that Japan probably could acquire them and transfer them secretly to the Soviet Government. The only other subject apparently thus far discussed has been that of the freight [rates of the?] Trans-Siberian Railway which the Japanese Government desires to have reduced. I have inferred from remarks recently made by the German Ambassador9 that the German Government also is interested in the reduction of these rates.