756.94/103: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received May 20—8:27 a.m.]
357. 1. Information has come to the British Embassy from good authority that in connection with the situation in the Netherlands East Indies Japanese naval units have been sent to Palau Island. It is, furthermore, understood by informant that the Japanese Government is considering measures to ensure Japan’s economic requirements by making definite demands on the Netherlands East Indies Government.
2. The British Ambassador has expressed to his Government the opinion that the making of such demands at a moment when the preoccupation elsewhere of third interested powers might be expected to preclude effective opposition would conform to normal Japanese procedure and that such action is more likely than actual attack on the Netherlands East Indies.