711.94/5–2741
Memorandum by Mr. Joseph W. Ballantine4
Mr. Secretary: It is suggested that the Secretary may wish in his next conversation with the Japanese Ambassador5 to bring up the subject of the Japanese economic negotiations with the Netherlands East Indies, which, as reported in Tokyo’s telegram no. 728 of May 24, [Page 233] 2 p.m.,6 attached hereto, are on the point of breaking down because the Indies authorities believe that the quantities of rubber and tin asked for by Japan in conjunction with the supplies being received by Japan from French Indochina are in excess of Japan’s own requirements and that the amounts in excess of these requirements are destined for Germany. It is suggested that in regard to this matter the Secretary, after referring to the fact that difficulties have apparently arisen in the Japanese economic negotiations with the Netherlands East Indies authorities, may wish to comment along lines as follows:
Reluctance on the part of the Netherlands East Indies authorities to supply to Japan strategic materials which might be destined to Germany is only natural. If the Japanese Government should put pressure upon the Netherlands East Indies Government to supply Japan with rubber and tin in quantities above Japan’s own requirements for reexport to Germany, the effect upon American public opinion would be very unfortunate, and it would be difficult to obtain public support in this country for any proposal calling for the lending by the Government of the United States of support to efforts by Japan for the procurement of materials which Japan needs for her own economy.
If the Japanese Ambassador should reply to the effect that Japan is as much under obligation under the Tripartite Pact to supply Germany as the United States is to aid Great Britain, the Secretary might comment that, according to our understanding, the underlying objective of the matters we are discussing is to assist Japan to alter her courses to courses along which the United States and Japan might cooperate. Any effort upon Japan’s part to put pressure upon the Netherlands East Indies to supply rubber and oil for reexport to Germany would appear to us clearly inconsistent with the objectives which our discussions have had in view.
- Prepared for the Secretary of State; notation by the Chief of the Division of Far Eastern Affairs: “Taken up orally with the Secretary. Not used. M. M. H[amilton].”↩
- May 28; see Foreign Relations, Japan. 1931–1941, vol. ii, p. 440.↩
- Not printed; see vol. v, p. 157, footnote 11.↩