Foreign Relations of the United States Diplomatic Papers, 1941, The Far East, Volume V

856D.6363/806: Telegram

The Consul General at Batavia (Foote) to the Secretary of State

Batavia, January 21, 1941—11 a.m.
[Received 12:24 p.m.]

Reference is made to my telegram of January 18, noon [11 a.m.].³⁸

The following is a close summary of the Japanese proposals for the agenda of the conference:

The vast territories of the Netherlands Indies abundant in natural resources, thinly populated and undeveloped are awaiting exploitation in wide fields which would benefit the Indies and Japanese and contribute to the welfare of the world. Japan and Netherlands Indies “stand in the relation of economic interdependence”—the former being geographically nearer the latter than either European or American powers. Japan is desirous of participating in exploitation of the natural resources of the Netherlands Indies and promoting trade and economic relations. Japan has the firm conviction that the prosperity of the Netherlands Indies would be increased if the latter would meet Japan’s desires and facilitate the economic activities in the Netherlands Indies of Japanese nationals. In view of the above the Japanese Government presents the following proposals to the Netherlands Indies Government:

1. The foreign labor ordinance to be simplified to permit entry of Japanese nationals up to the maximum number permitted by the above mentioned ordinance but the following are not to be included in the quota: Temporary laborers and those required for exploiting and developing Japanese enterprises in Sumatra, Borneo and the Great East. The development of these areas cannot be done speedily without the entry of a substantial number of Japanese nationals. The entry tax to be abolished.

2. All difficulties whatsoever concerning explorations carrying out enterprises and other economic activities to be eliminated.

3. Japanese doctors and dentists to be granted permission to practice in the Netherlands Indies without restriction.

4. Favorable treatment to be given to all Japanese enterprises in connection with their necessary arrangements such as employment of intellectual as well as manual laborers, transportation equipment such as railways, harbor ships, et cetera and other needed establishments. All applications or requests of Japanese nationals to be treated in friendly spirit.

5. Exploration and exploitation permits for various minerals including areas reserved for the Government, which are desired by Japanese nationals shall be given as promptly and as extensively as possible.

6. It is requested that Japanese nationals be permitted to fish in the waters of the Netherlands Indies, that increase in number of fishing boats, fishermen and employees for both territorial waters and deep sea fishing be permitted; that fisheries at or near fish dry bases and establishments for the operation thereof, such as markets, ice factories, cold storage, oil tanks, factories for prepared fish, repair shops for boats, et cetera be permitted; that import harbors for fish be abolished; that fish caught by Japanese in Netherlands Indies waters be exempted from import duty.

7. Establishment of direct Japan-Netherlands Indies air service by Japanese planes to be permitted and facilities for wireless communication and meteorological information by radio to be rendered to Japanese aviators.

8. Increase in number of Japanese ships in coastal navigation be permitted and restrictions on tonnage and navigable areas for Japanese ships be abolished. Further coastal navigation by Japanese ships be permitted when necessary for operation of Japanese enterprises. Harbors desirable for direct connection with Japan for the promotion of traffic between the two countries to be designated as open ports. Formalities concerning visits of Japanese ships to non-open ports are to be simplified as soon as possible and restrictions on tonnages of Japanese ships calling at such ports to be canceled.

9. Consent to be given to laying cables between the two countries under Japanese management in order to establish stable highly efficient means or communication. The prohibition against the use of the Japanese language in telegraphic communication between the two countries to be removed.

10. Applications by Japanese nationals to engage in warehousing, printing, weaving, ice making, rubber smoking, et cetera, to be complied with as far as possible.

11. Import quotas for Japanese goods to be arranged according to a list to be supplied later. Japan is prepared to purchase Netherlands Indies products mentioned on a schedule to be supplied later. Increased percentage of Indies imports to be allotted to local Japanese importers. Japanese importers in the Netherlands Indies to be exempt from the obligation to import from third countries. Friendly measures to be taken by the local Government covering Japanese goods imported into this country. (End of Japanese proposals)

12. Attention is invited to the fact that oil concessions and exports of petroleum products to Japan are not mentioned in the memorandum. Van Mook informed me in strict confidence last night, however, that the Japanese had stated verbally that they expected a reply to their memorandum delivered to him October 21 last (see pages 79 and 80 my despatch No. 68 dated November 13, 1940³⁹). Reactions of Netherlands Indies authorities will be cabled tomorrow.

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