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73. India. The Japanese press paid some attention to the signature of the new trade agreement between the United Kingdom and India. Apprehension was expressed lest the favourable terms granted to the British textile industry would have an adverse effect on Japanese trade, and there was some talk of a possible official protest. No such protest was, however, received by His Majesty's Embassy.
United States of America.
74. Mr. Hiroshi Saito, who had recently retired from his post of Japanese Ambassador to the United States, but was still resident in America, died on the 26th February. The United States Government decided to send Mr. Saito's ashes back to Japan in the U.S.S. Astoria. (It will be recalled that when the United States Ambassador in Japan died in Japanese territory in 1925, the Japanese Government acted similarly.) This gesture on the part of the United States was warmly welcomed in Japan. The Minister for Foreign Affairs expressed appreciation in the Diet on the 7th March, and the Vice-Minister for Foreign Affairs in a radio speech to America on the 18th. Appreciation, however, soon became magnified into a thinly-disguised revival of the campaign to separate the United States in the minds of the Japanese public from the other democratic States, and to represent the United States as fundamentally friendly to Japan, Unless, however, the Japanese are prepared to make more concrete contributions to securing American goodwill, it is not to be expected that expressions of appreciation, however fulsome, will make much difference to the American attitude.
U.S.S.R.
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75. The fisheries dispute still remained unsettled at the end of February and reports from various sources at the beginning of March indicated a considerable movement of Japanese troops towards Manchuria. The impression was given that Japan wished to be ready for emergencies in case it finally proved impossible to reach any agreement and in case the fishery auctions, fixed for the 15th March, should result in the Soviet Government taking over wholesale fisheries to which the Japanese claimed a right. The Japanese Minister for Foreign Affairs stated on the 13th March that the Japanese Government were prepared to take "the most effective and appropriate measures a breakdown.
in the event of 76. There was some uncertainty for a few days after the 15th March as to whether an auction had taken place, and, if so, how many fishing lots had been sold. It appeared, eventually, that only a small number had been disposed of, and a fresh auction was fixed for the 3rd April. In any case, negotiations proceeded at Moscow between the Japanese Ambassador and the Soviet Govern- ment, and it was felt that a settlement would be reached as soon as the Diet had dissolved. Moreover, while the matter was one of urgency, a certain amount of time still remained, due to the interval between the date of the auction and the date on which fishing could profitably begin.
77. On the 31st March the Ministry for Foreign Affairs informed foreign newspaper correspondents that the negotiations, which were nearing completion, had been delayed for a few days by a sudden change in the Soviet attitude,
which was most unjust.'
Anti-Comintern Pact.
78. There were many rumours at the beginning of the month that negotia- tions were in progress for a strengthening, whether into a military alliance or to some lesser extent, of the Anti-Comintern Pact. On the 6th March, however, the Minister for Foreign Affairs stated that Japan, while linked to Germany and Italy through the Anti-Comintern Pact, was not pitted against France, Great Britain and the United States of America. What was necessary was for the latter Powers to be brought to understand the Japanese attitude.
79. The German occupation of Czecho-Slovakia, however, made a consider- able impression in army circles in Japan and pressure appears to have been exercised on the Japanese Government by the German and Italian Ambassadors, who, it is believed, urged them to commit themselves to some form of binding alliance. The press reported that a very important meeting of the Inner Cabinet
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was held on the 22nd March and on the 23rd March the German Ambassador had a prolonged interview with the Minister for Foreign Affairs. However, nothing emerged from all these consultations and the Minister for Foreign Affairs informed His Majesty's Ambassador on the 29th March that no negotiations for the strengthening of the Anti-Comintern Pact had started yet. None the less, an impression prevails that, in view especially of the attitude of pro-German circles in the army, the Japanese Government may, without going as far as a military alliance, seek in some measure to tighten their relationship with the Axis Powers.
Germany.
80.
CK
Czecho-Slovakian Crisis. On the 20th March the Minister for Foreign Affairs caused a message to be sent to the German Government congratulating them on
recent developments," which would contribute much to the stabilisation of Europe.
81. In general, certain army circles were much impressed by this further advance of Germany in Europe and the Japanese press on the whole applauded the German action, which was held to be a further set-back for the democracies in Europe. On the other hand, there was a certain undercurrent of disapproval and doubt, which the Japanese Government no doubt took into account when they refused, at any rate for the present, to extend their commitments in Europe.
82.
Air Attaché.-It was announced on the 21st March that Lieutenant- Colonel Wolfgang von Gronau had been appointed air attaché at the German Embassy in Tokyo. Lieutenant-Colonel von Gronau is the first full-time air attaché to be appointed to the German Embassy, the work having previously been done by a technical air force officer acting as adviser to the other service attachés. 83. Trade. A Japanese commercial agency was established at Hamburg on the 10th March.
84. There was some talk in the press of negotiations with Germany for a revised trade agreement reaching a conclusion in the near future.
85. Propaganda. A party of German journalists left Berlin on the 28th March on a goodwill trip to Japan.
France.
86. Spratley Islands-According to an announcement which appeared in the evening press of the 31st March, the Japanese Government decided on the 30th March to place the Spratley Islands, in the South China Sea, under the jurisdiction of the Government-General of Formosa. It was pointed out in the official communiqué that the reefs had long been ownerless, but that Japan had undertaken in 1917, before the nationals of any other country, to embark upon the economic development of the reefs. In order to avoid unnecessary disputes, the Japanese Government had taken the step of assuming jurisdiction over the islands, and the French Ambassador had been so informed on the 31st March. (It appears that the French Government gave notice of the annexation of these islands in 1933, but never took adequate steps to make their occupation effective.)
Italy.
87. Cultural Agreement. A cultural agreement between Italy and Japan was signed in Tokyo on the 23rd March. The agreement provides for an exchange of teachers, students, literature, films, &c., between the two countries, as well as co-operation between their respective youth organisations. The agreement is closely similar to the cultural agreement signed by Germany and Japan.
88. International Exhibition. According to a press report, the Japanese Government decided on the 25th March to participate in the International Exhibition in Rome in 1942.
"
89. Cultural Relations.-On Army Day, the 10th March, the General Staff presented to the Italian Embassy a painting entitled Charge" by Mr. Mukai, who is said to have witnessed several severe battles in the Shanghai area.
Portugal.
90. A visit was paid to Tokyo in February by Captain Gorgulho, of the Macao Gendarmerie. According to the Portuguese Chargé d'Affaires, the captain came to Japan on a pleasure trip, but the Japanese press asserted that.
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