500.A15 a 1/383: Telegram
The Chairman of the American Delegation (Gibson) to the Secretary of State
[Received 11:15 p.m.]
68. Mr. Saburi, of the Japanese delegation, called on me this evening to inform me that Viscount Saito intended to submit to the executive committee meeting on Friday the Japanese proposals reported in my telegram No. 64 of July 6. He wished to impress on me the fact that the Japanese were entirely sincere in their desire to arrive at an agreement that would approximate the lower figures for tonnage contained in the original American proposals; that substantial increases from those figures would necessitate large building programs, and that Saito, with the approval of his Government, had decided to abandon the Conference rather than go back to Japan with any agreement which would add to the burden of taxation. He stated that the Japanese delegation would make this aspect of the situation absolutely clear.
Should the Japanese delegation remain inflexible, I doubt very much that the British would be willing to reduce their figures to a degree sufficient to enable any agreement to be brought about.