811.20 (D) Regulations/720
The British Embassy to the Department of State77
Précis of Cables
1. The most powerful weapon available to the British and Allied Governments and the Governments of the Western Hemisphere for dealing with Japan lies in action in the Economic sphere.
2. The use these Governments are at present making of this weapon is largely ineffective because its application and aim are uncoordinated, and its adoption is not comprehensive. Moreover, even allowing the fullest intention to co-operate it is difficult to harmonise the different systems of export control in force in the U. S. A. and throughout the British Empire.
3. Effective action demands immediate joint action, preceded by joint and comprehensive consultation between the U. S. G.,78 the British Empire and the Dutch.
[Page 614]The advantages of joint action must also be considered in the light of certain particular aspects of the problem:
- (i)
- It is agreed that it would be unwise at present to provoke Japan to war or other violent reaction.
- (ii)
- Tangible proof of the unity of purposes of the Democracies at the present time is the only effective means of demonstrating to Japan the strength of the non-Axis Powers.
- (iii)
- It is politically unwise for any one of them to act far in advance of the others, and probably impossible to obtain full co-operation from the Dutch without the participation of the U. S.
4. There is growing evidence of Japan’s increasing efforts to add to her stocks of key commodities, and it follows that the immediate restriction of key exports is a matter of the utmost importance and urgency, for without it Japan will be immune for a vital number of months from the effects of an application of the Economic weapon.
5. The restriction of imports from Japan appears to call for less precise co-ordination, but is a powerful weapon and one which can most effectively be handled by Joint, if not necessarily consistent action.
6. In the expectation that the U. S. G. will be prepared to take Joint action with the British and Allied Governments, H. M. G. has asked the co-operation of the Dominion Governments in:
- (a)
- Extending the range of the Licensing System at present in force by adding further commodities, by more rigid application by the Dominions, and bringing China and Manchuria within its scope.
- (b)
- Making more drastic the restrictions on key commodities.
It is not however, intended to apply any additional embargo on other than supply grounds except after consultation with the U. S. G.
7. H. M. G. urges the U. S. G. to co-operate immediately by limiting to normal proportions by Export License (except where more stringent embargoes are already in force) all essential goods so far as practicable.
8. But paragraphs 6 and 7 are only a temporary makeshift. There remains an imperative need for the machinery whereby the full force of Economic Pressure can be directed and controlled. This must be preceded by Joint Consultation for the purposes of:
- (1)
- Standardising the application of Economic Control.
- (2)
- Extending it over a wider range of commodities.
- (3)
- Effectively establishing the machinery for its operation throughout the Western Hemisphere as one of the main foundations of Total Defence in the Pacific.