394.115 Panay/399a: Telegram

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

99. Please communicate following note to the Minister for Foreign Affairs:

“Reference is made to the exchanges of communications between my Government and the Government of Japan regarding the attack upon the U. S. S. Panay and American merchant vessels on December 12, 1937, by Japanese armed forces, and to the assurances contained in your Government’s note dated December 14, 1937, and reaffirmed in its note of December 24, 1937, that the Japanese Government would make ‘indemnifications for all the losses’ sustained.

I am instructed by my Government to state that it finds (1) that the amount of the property losses sustained is $1,945,670.01, and (2) that the amount of the indemnification which should be paid in the death and personal injury cases is $268,337.35. Therefore the total amount which my Government is prepared to accept is $2,214,007.36.

These figures have been arrived at after careful consideration and represent only the actual property losses and a conservative estimate of the damages resulting from deaths and personal injuries. The amount includes no item of punitive damages.”28

Hull
  1. Text of note dated March 21, 1938, delivered by the Ambassador in Japan on March 22, 1938.