Office of the Historian

394.115 Panay/380: Telegram

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

Tokyo, February 28, 1938—4 p.m.
[Received February 28—7:15 a.m.]

139. Department’s 57, February 12, 3 p.m., reference Panay contributions.

1.
Count Kabayama who was requested by me to present suggestions as to possible ways in which the money might be used has been consulting other interested Japanese. He has now presented to me various suggestions among which are:
(a)
Endowment of beds in a charity hospital.
(b)
Endow a scholarship for Japanese graduates of the American school in Tokyo who continue their studies in the United States.
(c)
Give to the English-speaking Society of Japan for ordinary expenses.
(d)
Found a Townsend Harris memorial museum.
(e)
Endow a special section in some existing library in Japan to make available American publications, particularly American Government publications.
2.
Although each of these suggestions has merit, I am not entirely satisfied that any or all of them provide means for the use of the money to the best possible advantage. Furthermore in the past a number of deserving projects coming within the field of American-Japanese relations could not be either carried out or continued because of lack of funds. For example, funds for essential repairs to the temple at Shimoda where Townsend Harris stayed were collected some years ago only with the greatest difficulty and further repairs are now necessary; the grave in a temple graveyard of Heusken, Harris’ secretary, has fallen into disrepair but no funds are available; and money is required for the upkeep of graves of American naval sailors buried in various parts of the country. The Panay contributions (especially if increased to 100,000 yen which Kabayama suggested his friends might be prepared to do in certain circumstances) might supply a small but extremely useful income to meet constant or unforeseeable needs.
3.
The Japanese contributors have entrusted to me the disposal of the money and I am aware that responsibility in this regard is on me. Nevertheless I would appreciate having the Department’s advice on the following plan:
(a)
The contributions to be held in perpetuity under a trust in Japan to be known as the America-Japan Trust.
(b)
The trustees to be the American Ambassador, the Japanese President of the America-Japan Society, and one other American to be nominated by the other trustees.
(c)
The income of the fund to be expended in accordance with the principles laid down in the Department’s 361, December 18, 6 p.m.
4.
The contemplated trust would be in effect a miniature pilgrim’s trust which has been operated in Great Britain with signal success.
5.
I have not discussed with officers of the America-Japan Society the possible establishment of a trust fund but I believe that they would be entirely receptive.
6.
The fund now in my handling is deposited in a special account with the National City Bank in Tokyo and amounts to yen 37,099.95.
Grew