711.94/1603

Oral Statement Off the Record by the American Ambassador in Japan (Grew) to the Japanese Minister for Foreign Affairs (Arita), June 10, 1940

1.
I read the accounts of Your Excellency’s address before the Pacific Association55 with a great deal of interest. I was especially struck by the earnestness of your plea for the removal of barriers to trade as a prerequisite to the creating after the present war in Europe of a new world order, and I could not restrain the feeling that, if the Japanese Government could associate itself with the American Government in bringing about a free flow of commodities between nations, substantial progress might be made toward removing the causes for unrest which are reflected in the conflicts both in the Far East and in Europe.
2.
I am, of course, well aware of the view of the Japanese Government that, so long as the trend was toward exclusive economies, thus making it impossible for other nations to buy freely the raw materials which they need and to sell freely the commodities which they manufacture, it would be necessary for Japan to safeguard sources of raw materials in China and to assure herself of markets in that country.
3.
So long as the trend was toward the formation of economic blocs and the creation in increasing numbers of barriers of trade, perhaps [Page 74] a case might be made out for the need of Japan for securing sources of supply of raw materials and markets for her finished products by orderly processes.
4.
I can hardly believe, however, that it would be contended by anyone that the world could continue to develop as it has in the past under conditions of closed economies throughout the world.
5.
Such a device as that of economic blocs is at best only effective as an expedient in extraordinary times such as those through which we have passed during the last ten years, but we believe that it can never constitute a permanent basis for any kind of progressive world economy.
6.
I consider it the supreme tragedy that the nations of the world were unable to perceive after the first World War that they could not continue cut-throat competition and other manifestations of closed nationalism.
7.
They retained resources which unfortunately tempted them to think that each nation could afford to develop its own industrial and economic resources at the expense of other nations, but I feel confident that the present war will leave, the nations of Europe so impoverished that the alternative to cooperation will be chaos.
8.
If the civilization which we have built up so laboriously over a period of centuries is not to collapse, a new world order such as Your Excellency suggested in your speech before the civic association is essential, especially between those nations whose trade is complementary.
9.
You will remember that during the course of our conversation on April 26 I emphasized that statesmanship must look to the long future rather than to the immediate present and that the reasons which dictate the maintenance of friendship between our two countries are fundamental and must prevail in the long run. The confidence which I impose in that belief is stronger now than ever before.
10.
For a long time the American people have looked forward to the firm and permanent establishment of peace and the American Government has made efforts in every way possible toward bringing about disarmament.
11.
However, the American people are now convinced that certain European governments have made their countries a menace to civilization and to the security of the United States. The United States is now engaged in a program of rearmament on an unprecedented scale, for defense and security.
12.
The confident knowledge that Japan, a nation for whom the American people have entertained for more than eighty years feelings of the friendliest character, is prepared to align its policies and attitude with those of the United States would, in my carefully studied opinion, [Page 75] contribute far more to the security and the well-being of Japan than the achievement of objectives in the Far East by means which the American people have renounced.
  1. See telegram No. 413, June 4, 1940, 8 p.m., from the Ambassador in Japan, p. 66.