894.85/642
Memorandum by the Acting Secretary of State
The Japanese Ambassador called to see me this evening at his request. The Ambassador asked if I would lend my good offices in helping to solve a situation which had been created owing to the fact that three Japanese steamers had been held up at Cristobal on the Atlantic side of the Panama Canal and that some six other Japanese steamers were now headed for the Canal for the purpose of transiting. The Ambassador said that these steamers could not transit, although he had word from Japanese shipping sources that ships of other nationalities were being permitted to transit.
I said to the Ambassador that I would be glad to investigate and if I had any information which would be useful to him, I would be glad to have it transmitted. I said that it was my understanding that about July 11 the Canal authorities had issued an order notifying shipping that repairs had to be undertaken in the Canal and that for that reason merchant shipping which desired to transit the Canal would have to be prohibited or severely restricted for an indefinite [Page 264] period. The Ambassador inquired with regard to the report he had concerning the fact that other flagships were being enabled to come through. I said that if this were in fact the case, I assumed that they must be merchant ships carrying material required for the United States defense program and I said I was of course sure the Ambassador would agree that it was entirely logical to suppose that if any exceptions were made, ships carrying cargoes urgently required for our defense program would be granted preference.