693.001/437a: Telegram

The Acting Secretary of State to the Secretary of State, Temporarily at Lima40

76. 1. The Department has practically completed its study of the Japanese Government’s reply of November 18 to this Government’s note of October 6 on the subject of American rights and interests in China and has prepared a draft rejoinder which is summarized below in paragraph numbered 2.

2. The Government of the United States reaffirms its opinion that imposition of restrictions upon activities of American nationals engaged in educational, philanthropic and commercial endeavors is unquestionably discriminatory against legitimate American interests. Further, the plans and practices of the Japanese authorities in regard to exchange control, compulsory currency circulation, tariff revision, and monopolistic promotion imply that the Japanese Government or Japanese-controlled regimes are entitled as by right of sovereignty to disregard the established rights and interests of other countries, including the United States. The Government of the United States is convinced that the restrictions and measures under reference are unjust, unwarranted and counter to treaty provisions binding on both Japan and the United States.

The American Government in its note of October 6 requested that the Japanese Government carry out its reiterated assurances to observe the principle of equality of opportunity and abide by its treaty obligations. [Page 105] In its reply the Japanese Government apparently regards observance of that principle as conditioned by a “new order” and a “new situation” in the Far East.

This country’s adherence to and advocacy of the principle of equality of opportunity does not result solely from a desire to obtain commercial benefits but primarily from a conviction that observance leads to economic and political stability and promotes the opening of trade channels with mutually and reciprocally beneficial results.

The American people and their Government could not assent to the establishment, at the instance of and for the special purpose of any third country, of a regime which would arbitrarily deprive them of rights which are legally and justly theirs.

The American Government cannot accept the implication that enjoyment of equality of opportunity is to be contingent upon its admission of the validity of the conception of Japanese authorities of a “new order” and a “new situation” in East Asia.

Fundamental principles such as that of equality of opportunity are not subject to modification by a unilateral dictum.

The Japanese Government has in various international agreements and understandings committed itself to the observance of the principle of equality of economic opportunity and has frequently insisted upon its observance by other nations.

The position of the American Government on the subject of revision of agreements is recalled to the Japanese Government by the quoting of two passages from this Government’s note to Japan of April 29, 1934,41 and one passage from the Secretary’s statement of July 16, 1937.42

The American Government has always regarded agreements as susceptible of amendment but has always insisted that only by orderly processes among the parties thereto can changes rightfully and lawfully be made, views to which the Japanese Government has upon numerous occasions subscribed.

The Government and people of the United States cannot assent to the termination of the provisions of treaties to which this Government is party or of rights and obligations thereunder by the arbitrary action of any other country.

The American Government is now, as always, prepared to consider any just and reasonable proposals envisaging the resolving of problems in a manner fair to all directly concerned by processes of free negotiation and new commitment. The Japanese Government has had and continues to have opportunity to make such proposals, which this Government has been and continues to be willing to discuss, if and when put forward, at whatever time and in whatever place may be agreed upon, with representatives of the other powers, including Japan and China, whose rights and interests are involved.

3. The President heartily favors the sending of such a note and approves the substance of the draft. Since its note of November 18, the Japanese Government has proceeded steadily with its plans for [Page 106] economic control in China and has shown no moderation of its attitude toward American rights and interests in China, which continue to be impaired. The Japanese Foreign Minister has suggested to Ambassador Grew that further exchanges of views between our two governments be oral. However, the Japanese Government, after each conversation between the Foreign Minister and Grew on the general subject of American rights and interests in China, has inspired statements in the Japanese press in outline and support of the Japanese Government’s views in regard to the proposed “new order” in East Asia. On December 19 the Japanese Foreign Minister issued to the press a formal statement expository of the Japanese Government’s views.43 These statements have appeared in a number of the leading papers in this country, and so far this Government has taken no action to refute them. We therefore feel that the sending of this rejoinder to the Japanese Government would serve a very useful purpose in clarifying our position both to our own people and to the Japanese Government. We incline to the view that it would be well to present the rejoinder to the Japanese Government at an opportune moment, perhaps within the next 10 days. I should greatly appreciate your comments and suggestions.44

Welles
  1. The Secretary of ‘State was Chairman of the American delegation at the Eighth International Conference of American States.
  2. See telegram No. 59, April 28, 1934, 7 p.m., to the Ambassador in Japan, Foreign Relations, Japan, 1931–1941, vol. i, p. 231.
  3. Foreign Relations, 1937, vol. i, p. 699; Foreign Relations, Japan, 1931–1941, vol. i, p. 325.
  4. Foreign Relations, Japan, 1931–1941, vol. i, p. 816.
  5. The Secretary replied in telegram No. 57, December 23, 8 p.m.: “Draft seems adequate and I have no special comment to offer.” (693.001/438.)