793.94/16703a: Telegram

The Secretary of State to the Ambassador in Japan (Grew)

342. 1. The American Legation at Bucharest has received information from a reliable source as follows:97

“… military circles in Germany are greatly interested in the continuation of the Sino-Japanese war. They are indirectly encouraging China to resist and have also permitted various countries to send additional war material to China. While the Germans are using Japan as a threat against the United States, … the former have made a secret economic treaty with the Dutch authorities in occupied Holland which will become effective immediately after the end of the war. This treaty secures for Germany large concessions in Java, Sumatra, Celebes, Borneo and the Dutch part of New Guinea. These concessions cover large areas and include the Banka and Billiton tin mines as well as some oil properties. The price for these concessions has been fixed and will be met in part by reducing the cost assessed the Dutch for the upkeep of the German army of occupation. In the event that Japan attacks the Dutch East Indies and succeeds in gaining foothold there, Germany will immediately claim her rights.”

2. You may make discreet use of the foregoing in any conversations you may have with influential Japanese without revealing the source of your information.

Hull
  1. Omissions indicated in the original.