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F 12849/39/10)

Pearl Rian

Under

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53838/34/40

158

GENERAL DISTRIBUTION

FROM JAPAN

Decode.

Sir R. Craigie (Tokyo)

D.

12.45 a. m.

18th December, 1939.

19th December, 1939.

R.

9.50 p.m.

18th December, 1939.

No. 646 (R).

IMPORTANT.

Vice Minister for Foreign Affairs asked me, when I

called today, to transmit to you a communication to the

following effect: "In view of the fact that absolute military

requirements calling for (? control of) lower Yangtze area

have become amenable to gradual modification, the Japanese

forces have accordingly decided to make various preparations

with a view to lifting the ban on navigation of the Yangtze

from Nanking downwards, under certain restrictions necessary

for maintenance of peace and order and for military operations".

He added that the same communication was being made

this afternoon to my United States colleague by Minister for

Foreign Affairs during the third of the series of conversations,

which have been taking place between them.

Vice Minister for Foreign Affairs remarked that this

was Japan's answer to those who maintained that her purpose

was one of economic monopolization in China. As long as

hostilities continued, some restrictions on trade were

inevitable, but the moment was now coming when a period of

reconstruction/

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