711.94/1348: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received November 21—10:12 a.m.]
615. 1. I had last week a long conversation at his initiative with the Japanese gentleman mentioned in Department’s 414, December 14, 11 a.m., 1938,11 on the subject of American-Japanese relations. In his own interest, n. b., not for reasons of his own personal safety, it is highly important that his name be omitted from the cabled records. In the Embassy’s records I am referring to him as “Mister X”.
2. We discussed in its broad aspects the problem of restoring American-Japanese relations, the position which I took being substantially along the lines of my address of October 19. Following this conversation he presented to me through a trusted mutual American friend a proposition of which the following are the salient features:
- (a)
- Although Japan’s special relations with Germany and Italy have been greatly spent, there are still some people who believe that Japan’s interests require that a Japanese-German-Soviet axis be developed and are working hard in that direction. On the other hand, there are compelling reasons for Japan to proceed as quickly as possible toward associating itself on terms of mutual friendship and [Page 597] confidence with the United States and Great Britain. In Mr. X’s view the most practicable method of bringing about that desired relationship with the democratic powers would be through the setting up of some plan of economic and financial cooperation between Japan, on the one hand, and the United States and Great Britain on the other.
- (b)
- He believes that the army is looking for some tangible and plausible excuse to retire from China with a minimum loss of face. A plan of economic cooperation with the United States would furnish such excuse. He is convinced that the principle of the Open Door can be firmly established and that on such a basis, together with adequate guarantees and security, it would be practicable to work out some specific plan combining both economic and political features. Such features would on the one hand provide satisfactory assurance with regard to principle of equality of opportunity and on the other hand would provide the American financial support necessary for the development of China. To discuss this question he seeks encouragement to proceed promptly to Washington.
3. Mr. X sent word at the same time that he was about to leave for Manchuria and wished to have an expression of my opinion before his departure. I returned a message through the above named channel that a condition which would permit of consideration of his view does not now exist; that I could not predict when such a condition would come about; and that I could not encourage any optimistic expectation with regard to character of my reply if and when made.
4. A full report will go forward in the pouch leaving today.12 In order that the Department may consider this matter in correct perspective on the basis of the brief description above presented, it should be recalled that Mr. X has close connections with the Government through the large quasi-official companies which have been placed by the army under his control. He has furthermore endeavored to convey to me the impression that he is in close touch with the Government which he says is at present “floundering” and earnestly seeking a way out of the China imbroglio.