894.52/40: Telegram
The Secretary of State to the Chargé in Japan (Dickover)
Washington, November 3, 1936—3
p.m.
138. Your despatch No. 2067 of October 2, 1936.33
- 1.
- Assuming that the third principle (C) of the British proposal contemplates during the 99 year period the continued exemption of leaseholders from payment of taxes on leasehold land and buildings, the Department would be prepared to agree to settlement of the leasehold question on the basis of the British proposal if that proposal should be acceptable to the Japanese Government.
- 2.
- Upon receipt of the Department’s instruction No. 1114 of October 5, you may in your discretion furnish the Foreign Office informally with an outline of the proposal which this Government had intended to make in the near future, using paragraph 1 of page 13, instruction No. 1018 of April 30, 1936,34 as basis for such outline. Please add that, although this Government believes, of course, that such intended proposal would offer a basis of settlement of the leasehold question wholly equitable to all concerned, it desires to contribute toward final and amicable solution of this long standing and vexatious question by being prepared to accept settlement on the basis of the proposal which it is understood was submitted to the Foreign Office by the British Ambassador on September 29, 1936.
- 3.
- Please inform the Department of action taken. If you have objection to making approach above suggested, please indicate character thereof.
- 4.
- For your confidential information and guidance: Any right of American leaseholders which may be legally enforceable in Japan cannot, of course, be compromised by acceptance by this Government of plan of settlement. However, upon acceptance by the Japanese Government of the British proposal, this Government would urge American leaseholders to accept the terms of settlement.
Hull