693.001/428

Oral Statement by the American Ambassador in Japan (Grew) to the Japanese Minister for Foreign Affairs (Arita), November 21, 1938

I wish to say at the outset that I am very glad that Your Excellency was good enough to receive Mr. Dooman on Saturday and to explain at least part of Japan’s point of view regarding the new situation created in China. I have been apprised of everything that Your Excellency said to Mr. Dooman, so, if Your Excellency wishes, we may proceed on the assumption that I am familiar with that conversation.

I was very glad to note Your Excellency’s wish expressed to Mr. Dooman to have several future conversations with me with a view to smoothing out so far as possible the present discrepancies between the points of view of our respective Governments and I shall do my very best correctly to interpret to my Government Japan’s point of view as it may be set forth to me from time to time.

On the other hand Your Excellency will realize that I must as clearly as possible set forth the point of view of my own Government because future adjustments cannot take place unless we understand each other with complete clarity.

I believe that our conversation today will be purely exploratory and I wish to make clear to Your Excellency the fact that I am not at this time attempting any reply to the Japanese note of November 18, because my Government will need time to study it carefully and in detail and I shall expect to receive my Government’s observations in due course thereafter.

There are a few points however which I would like to bring up at once.

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Your Excellency has discussed the question of the “exploitation” of China and spheres of influence therein. I think Your Excellency will agree with me that the historical record shows clearly that the United States of America has never attempted to “exploit” China or to acquire any “sphere of influence” whatever in that country. Our desire always has been and is today to avoid spheres of influence and exploitation by or in any one country.

Our interpretation of the Open Door is totally contrary to those principles. The principle of equality of commercial opportunity has been a fundamental principle of the foreign policy of the United States ever since our country came into existence. The treaties relating to the Far East to which the United States is a party and in which provisions relating to that principle appear were in all instances concluded with a view to decreasing and avoiding frictions which had developed in or which might develop in international contacts in that area.

We feel that respect for an observance of those principles and provisions will make for peace and general prosperity whereas contrary courses would inevitably make for friction and consequences injurious to all countries including those which pursue such courses. The American Government and people believe with conviction that those principles and provisions are in the interests of all concerned.

My Government is anxious to take steps to arrest the present trend toward international anarchy and to contribute toward an improvement of international relations and restoration of international order. The adjustment of problems in international relations by peaceful negotiation and agreement and the faithful observance of international agreements are advocated by my Government.

My Government has pursued a trade policy whose object is to induce the removal and reduction of restrictions upon the exchange of goods in international trade in the belief that living standards would be raised and enriched and more harmonious relations promoted among nations as a result of a normal expansion of foreign commerce.

The principle of equality of commercial opportunity has always been the belief and guiding principle of the people and the Government of the United States, and American opinion believes it to be incompatible with the establishment and maintenance of American and world prosperity that any country should endeavor to establish a preferred position for itself in another country.

My Government also feels that no one Government can properly expect throughout an extensive and important area of the world to make its wishes and its will conclusive and exclusive, and that whatever may be the motives, the attempt on the part of any Government to do that will inevitably result in injuries to its own country and itself and to other countries.

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In my last talk with Your Excellency I asked for an interpretation of Prince Konoye’s observation on November 3 that Japan will cooperate with foreign nations so long as they understand the true intention of Japan and adopt policies suitable for the new conditions.

I would be very glad to learn how this proposed cooperation is expected to work out in actual practice. For instance, Americans have constantly been told in recent months by Japanese nationals in China that American trade with China will be tolerated only if American interests deal through Japanese middle men. Does Your Excellency envisage such “cooperation” in that light? This practice is progressively being put into effect in China today.

Your Excellency has asked for patience on the part of the American Government but it is obviously my duty to point out that whatever the attitude of the American Government the patience of the American people is not inexhaustible and my Government is obliged to listen to public opinion in the United States.

There can be no doubt that owing to Japan’s actions and policies in China there is good reason why both Your Excellency and I should be disturbed with regard to the developing situation in Japanese-American relations. For my part I am more disturbed at present than I have been for a long time and it seems to me that whatever may result from our future conversations and negotiations Japan should now without further delay proceed to take the obvious steps to prevent those relations from steadily deteriorating.

One of the first steps would be to open up the lower stretches of the Yangtze River to American shipping and commerce. We know as a fact that quite apart from provisioning the Japanese forces Japanese trade is proceeding both up and down the river at the present time in regular and openly advertised commerce, so that we are totally unable to accept the reasons advanced by the Japanese Government for preventing such American trade.

My Government takes note of the recent assurance that the Japanese Government has no intention whatever to hinder wilfully navigation and commerce on the Yangtze River and that the Japanese Government is now engaged in particular efforts in order to bring about at the earliest possible moment a return of normal conditions; but at the same time the American Government is of opinion that with every day’s delay in rectifying the present state of affairs the seriousness of this discrimination against foreign rights and interests is intensified.

Another obvious step of prime importance on the part of the Japanese authorities would be forthwith to cease the bombings of and other interference with American mission and other property in areas far removed from military or naval operations. Such unwarrantable acts are taking place constantly, the reports of which [Page 811] are daily pouring into our Embassy. The plea that these outrages are accidental is obviously untenable in view of the volume and constancy of these depredations which recently have involved not only the loss of American property but the loss of American life and the desecration of our flag.

Other points brought forth in our note and in the Japanese reply of November 18 I shall reserve for future discussion.