Foreign Relations of the United States Diplomatic Papers, 1941, The Far East, Volume IV

711.94/2476

Final Draft of Proposed “Modus Vivendi” With Japan⁹⁴

[Washington,] November 25, 1941.

The representatives of the Government of the United States and of the Government of Japan have been carrying on during the past several months informal and exploratory conversations for the purpose of arriving at a settlement if possible of questions relating to the entire Pacific area based upon the principles of peace, law and order and fair dealing among nations. These principles include the principle of inviolability of territorial integrity and sovereignty of each and all nations; the principle of non-interference in the internal affairs of other countries; the principle of equality, including equality of commercial opportunity and treatment; and the principle of reliance upon international cooperation and conciliation for the prevention and pacific settlement of controversies and for improvement of international conditions by peaceful methods and processes.

It is believed that in our discussions some progress has been made in reference to the general principles which constitute the basis of a peaceful settlement covering the entire Pacific area. Recently the Japanese Ambassador has stated that the Japanese Government is desirous of continuing the conversations directed toward a comprehensive and peaceful settlement in the Pacific area; that it would be helpful toward creating an atmosphere favorable to the successful outcome of the conversations if a temporary modus vivendi could be agreed upon to be in effect while the conversations looking to a peaceful settlement in the Pacific were continuing; and that it would be desirable that such modus vivendi include as one of its provisions some initial and temporary steps of a reciprocal character in the resumption of trade and normal intercourse between Japan and the United States.

On November 20 the Japanese Ambassador communicated to the Secretary of State proposals in regard to temporary measures to be taken respectively by the Government of Japan and by the Government of the United States, which measures are understood to have been designed to accomplish the purposes above indicated. These proposals contain features which, in the opinion of this Government, conflict with the fundamental principles which form a part of the general settlement under consideration and to which each Government has declared that it is committed.

The Government of the United States is earnestly desirous to contribute to the promotion and maintenance of peace in the Pacific area and to afford every opportunity for the continuance of discussions with the Japanese Government directed toward working out a broad-gauge program of peace throughout the Pacific area. With these ends in view, the Government of the United States offers for the consideration of the Japanese Government an alternative suggestion for a temporary modus vivendi, as follows:

Modus Vivendi

1. The Government of the United States and the Government of Japan, both being solicitous for the peace of the Pacific, affirm that their national policies are directed toward lasting and extensive peace throughout the Pacific area and that they have no territorial designs therein.

2. They undertake reciprocally not to make from regions in which they have military establishments any advance by force or threat of force into any areas in Southeastern or Northeastern Asia or in the southern or the northern Pacific area.

3. The Japanese Government undertakes forthwith to withdraw its armed forces now stationed in southern French Indochina and not to replace those forces; to reduce the total of its forces in French Indochina to the number there on July 26, 1941; and not to send additional naval, land or air forces to Indochina for replacements or otherwise.

The provisions of the foregoing paragraph are without prejudice to the position of the Government of the United States with regard to the presence of foreign troops in that area.

4. The Government of the United States undertakes forthwith to modify the application of its existing freezing and export restrictions to the extent necessary to permit the following resumption of trade between the United States and Japan in articles for the use and needs of their peoples:

(a) Imports from Japan to be freely permitted and the proceeds of the sale thereof to be paid into a clearing account to be used for the purchase of the exports from the United States listed below, and at Japan’s option for the payment of interest and principal of Japanese obligations within the United States, provided that at least two-thirds in value of such imports per month consist of raw silk. It is understood that all American-owned goods now in Japan the movement of which in transit to the United States has been interrupted following the adoption of freezing measures shall be forwarded forthwith to the United States.

(b) Exports from the United States to Japan to be permitted as follows:

(i) Bunkers and supplies for vessels engaged in the trade here provided for and for such other vessels engaged in other trades as the two Governments may agree.

(ii) Food and food products from the United States subject to such limitations as the appropriate authorities may prescribe in respect of commodities in short supply in the United States.

(iii) Raw cotton from the United States to the extent of $600,000 in value per month.

(iv) Medical and pharmaceutical supplies subject to such limitations as the appropriate authorities may prescribe in respect of commodities in short supply in the United States.

(v) Petroleum. The United States will permit the export to Japan of petroleum, within the categories permitted general export, upon a monthly basis for civilian needs. The proportionate amount of petroleum to be exported from the United States for such needs will be determined after consultation with the British and the Dutch Governments. It is understood that by civilian needs in Japan is meant such purposes as the operation of the fishing industry, the transport system, lighting, heating, industrial and agricultural uses, and other civilian uses.

(vi) The above stated amounts of exports may be increased and additional commodities added by agreement between the two governments as it may appear to them that the operation of this agreement is furthering the peaceful and equitable solution of outstanding problems in the Pacific area.

5. The Government of Japan undertakes forthwith to modify the application of its existing freezing and export restrictions to the extent necessary to permit the resumption of trade between Japan and the United States as provided for in paragraph four above.

6. The Government of the United States undertakes forthwith to approach the Australian, British and Dutch Governments with a view to those Governments’ taking measures similar to those provided for in paragraph four above.

7. With reference to the current hostilities between Japan and China, the fundamental interest of the Government of the United States in reference to any discussions which may be entered into between the Japanese and the Chinese Governments is simply that these discussions and any settlement reached as a result thereof be based upon and exemplify the fundamental principles of peace, law, order and justice, which constitute the central spirit of the current conversations between the Government of Japan and the Government of the United States and which are applicable uniformly throughout the Pacific area.

8. This modus vivendi shall remain in force for a period of three months with the understanding that the two parties shall confer at the instance of either to ascertain whether the prospects of reaching a peaceful settlement covering the entire Pacific area justify an extension of the modus vivendi for a further period.

There is attached in tentative form a plan of a comprehensive peaceful settlement covering the entire Pacific area as one practical exemplification of the kind of program which this Government has in mind to be worked out during the further conversations between the Government of Japan and the Government of the United States while this modus vivendi would be in effect.

[Annex]

Strictly Confidential,
Tentative and Without
Commitment

[Washington,] November 25, 1941.

Outline of Proposed Basis for Agreement Between the United States and Japan

[Here follows text of Section I as printed under date of November 22 on page 637 and Section II as printed under date of November 24 on page 645, except that the parenthetical section of paragraph 3 was omitted, paragraph 6 was omitted and the subsequent paragraphs renumbered, and the last two paragraphs were revised as follows:]

9. Both Governments will agree that no agreement which either has concluded with any third power or powers shall be interpreted by it in such a way as to conflict with the fundamental purpose of this agreement, the establishment and preservation of peace throughout the Pacific area.

10. Both Governments will use their influence to cause other governments to adhere to and to give practical application to the basic political and economic principles set forth in this agreement.

94. See footnote 63, p. 635. On copy of this draft in FE Files, Lot 244, there appears a notation in red pencil by the Secretary of State as follows: “Final—Required final Conference with allied p[owe]rs before decision to use or not to by our Gov[ernment]—and therefore this paper was never presented to Japs. C[ordell] H[ull]”.