351G.115/24

Memorandum by the Adviser on Political Relations (Hornbeck)13

The Japanese action in seizing goods in which there is an American interest at Hanoi was, in my opinion, taken partly toward discovering what action—especially what strong action, if any—the United States Government may take.

The Japanese have in this case broken into godowns which are not their property and are not under their lawful control. They have gained the possession of the keys to those godowns by threat of force. They are removing from those godowns goods in which there exists an American interest. Whatever may be the fact as to the legal ownership of the said goods, the goods are being paid for with American money, [Page 161] some of them are American exports, and it is an American interest that they reach the purchaser, the Chinese Government or representatives thereof. The Japanese Government has at no time claimed the rights of a belligerent and it certainly has not assumed the obligations of a belligerent. Regardless of legal aspects—political and economic interests of the United States are involved and are being subjected to impairment. Something in the way of retaliation would seem called for toward preventing the Japanese from being encouraged to embark upon “bigger and better” burglaries.—The action suggested in the telegram here attached14 (from an unidentified friend of Mr. Lyon15 to Mr. Lyon), especially that of quiet action immediately by our Treasury in refusal of clearance for Japanese ships in American ports and other ships bound for yen-bloc ports would, in my opinion, be likely to have a wholesome effect.

S[tanley] K. H[ornbeck]
  1. Noted by the Secretary of State.
  2. Not printed.
  3. Frederick B. Lyon, Assistant Chief of the Division of International Conferences.