17 November 1941
Re your #1097*
1. The contents of 3 of paragraph 2 pertaining to Japanese-U. S. relations, seems to be about the same as the terms contained in the supplementary provision of the United States' 21 June proposal. In view of the fact that "materials necessary for one's own country's safety and for self-defense" shall be an exception, there is a danger that even after the agreement is entered into, they will put some restrictions on the exporting of petroleum. We cannot accept that phraseology, therefore, unless they agree not to restrict exports on articles needed by us which will be clearly listed.
2. Regarding sub-sections 1 and 2 of paragraph 3 of that message which concerns the policy on the Pacific area: Under paragraph 5 of the basic terms of Japanese-Chinese peace which was appended to our 25 September proposal**, regarding economic cooperation, there is no objection to a third country's engaging in economic activities in China as long as it is conducted on a fair basis. Our proposal is aimed at our having the right to develop and have access to natural resources vital to national defense. In view of the great sacrifices made by Japan in the past four and a half years, this is but a natural demand.
If, therefore, the United States recognizes the basic forms of our peace with China, and if the contents of your message #1096*** and sub-sections 1 and 2 of the paragraph referred to, are meant to be the basis from which a permanent policy is to be established subsequent to the establishment of peace under the terms set forth by us, we shall give it our favorable consideration.
If, on the other hand, the contents of your message #1096*** and sub-sections 1 and 2 of the referred to message (1097*) are aimed at making us alter the basic peace terms, the Imperial Government finds them absolutely unacceptable.
3. Re the same paragraph 3:
It is feared that the terms included in this paragraph will lead to joint supervision of finances and credit in China. Since this conflicts with the fundamental principles of the New Order policy of the Empire, (please point out that these terms conflict with the basic principles that the United States has been proclaiming of late, too), for that reason, it is impossible for us to give our approval thereto.
4. After all is said and done, the various paragraphs noted above are apparently parts of a proposal which is attempting to completely disregard our sacrifices during four and a half years of war. Settlement based on this proposal is absolutely out of the question. Since the United States herself has stated that this was an unofficial and exploratory proposal which has no binding powers, please lead the United States to completely abandoning it and to proceed, using our proposal of 25 September as the basis on which to do so.
JD-1: 6589 (D) Navy Trans. 11-18-41 (S-TT)
*JD-1: 6586 (S.I.S #24932)
**JD-1: 5360 (S.I.S #22550-51)
***JD-1: 6585 (S.I.S #24931)
(EXHIBITS OF JOINT COMMITTEE , EXHIBIT NO. 1 INTERCEPTED DIPLOMATIC MESSAGES SENT BY THE JAPANESE GOVERNMENT BETWEEN JULY l AND DECEMBER 8, 1941)