711.94/1575: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

579. Department’s 263, July 12, 5 p.m.

1.
With regard to (a): As we are not in a position to know precisely the extent to which action could be taken by the United States conformably with American policy and the extent to which action would have to be taken pari passu by Japan, we have not attempted to formulate any plan of a specific character. What we had in mind in referring to the taking of initiative by Japan was the removing of the obstacles to peace outlined in my 227, April 2, 9 p.m., paragraph 4, subparagraph (b).
2.
With regard to the second point (item b) of the Department’s 263: We merely had in mind certain conditions affecting trade between the United States and Japan which exist today but which did not exist when the commercial treaty of 1911 was concluded. For example, the setting up by Japan of import and export trade control, exchange control and other measures which impede trade, is out of line with the liberal trade and exchange policies of the United States and would obviously have to be taken cognizance of in any modus vivendi (and eventually any commercial treaty) that might be arranged with Japan. (Please see in this connection item (a) of paragraph numbered 1 of our 365, July 27, 1939.21)
Grew