756D.94/159: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received June 10—7:41 a.m.]
794. Embassy’s 727, May 24, 1 p.m.; and 728, May 24, 2 p.m.35 A member of the Netherlands Legation stated that the reply of the Netherlands East Indies to the latest Japanese proposals had been received in Tokyo by the Foreign Office on Saturday, June 7 and had been the subject of a series of conferences between Matsuoka, the Ministers of Commerce, War and Navy, and that the Japanese answer was expected to be delivered June 10.
The substance of the Dutch reply had been conveyed by Batavia to the Dutch Legation here and in general constituted a polite but firm refusal of the Japanese request for special privileges in regard to immigration, business opportunities and the exploitation of mineral resources, et cetera, on the ground that the Japanese were afforded assurance of facilities equal to those given any foreign interests in the Netherlands East Indies in matters of trade and business opportunities. The Dutch reply intimated without so saying that the Netherlands East Indies could not be regarded as falling within any co-prosperity sphere under Japanese leadership. In respect of trade, the Dutch reply made it clear that in view of the fact that Germany was at war with the Netherlands and in view of Japan’s special treaty relation with Germany the Netherlands Government would require not only assurances but the opportunity to verify that no raw materials made available to Japan from the Netherlands Indies would be reexported to Germany. The information stated that while the reply constituted a rejection with a few minor exceptions of Japanese demands it contained no suggestion for breaking off negotiations and indicated willingness to continue to discuss specific points.
The informant stated that the Dutch Legation had no advance information as to the nature of the Japanese reply expected tomorrow.