QL.JU \ nn mm BRITISH EMBASSY, Washington'; D* C* August 8th, 1939* No. 87S My Lord, In continuation of ray telegram Do* 335 of the 28th July, I have the honour to report that the press has in general applauded the Administration's action in denouncing the United States-Japanese Commercial Treaty of 1911* Shore ore, however, a few .exceptions» 2* She Nov York Hearst newspaper calls the denunciation "a reckless deed" for which none can doubt that Japan will take reprisals. It will, says the editorial, hardly serve the Interests of the United States at all, but will "aronumentally" serve those of China, Jjtagland and Russia* "England's chestnuts were never pulled out of any fire with greater timeliness* The United States has never played »ore completely Into English hands''". As His Majesty's Consul General In San Francisco remarks in reporting that the local Hearst press has taken a similar line, the Hearst press seems now "prepared to go to all lengths in condoning Japanese misbehaviour so long as the interests of isolationism are thereby served." The Hew York "Journal of Commerce!1 also shows some misgivings as regards the commercial effect of a step taken ehlefly for political reasons. It points out that any stop which jeopardises the extensive United States-Japanese commerce/ The Sight Honourable J Kits r* w The Viscount Halifax, &• %| \ etc*, etc., etc VALM:CBsACEM;CL 3 - 8 • commerce In raw materials mat work great economic Injury to both countries although Japan will suffer moat* Zt notes with approval Mr. Hall's statement that discussions for a new trade treaty may be Inaugurated shortly if conditions are propitious, and It hopes that every effort will be made to avoid piling up now obstacles to commerce* The "Chicago Tribune", usually so hostile to Mr* Roosevelt, found its guns rather spiked on this occasion by the faot that denunciation of the treaty had first boon proposed by the Republican Senator Vandenberg* tt still, however, managed to hint that the President's objeet is not so much to protect American rights in China aa to threaten war in the interest of some other nation* 3* Apart from these dissentient voloos there is remarkable unanimity In press comment from all parts of the country> The burden of comment Is that whatever Groat Britain may find it advisable or necessary to concede to Japanese demands..* the United States has made up. its mind that it will stand up for American rights in the Par East* Such a deduction appears to bo influenced by a belief or hope that the Administration intends in aim months* time, if necessary, to put an embargo on the export of war materials to Japan or at the very least to use tariffs aa a weapon against Japanese trade* The left-wing "Nation" believes the Administration should bo encouraged, by public approval, to embargo the export of war-materials to Japan and prohibit the Import of Japanese goods into the United States* 9ha Intellectuality left-wing "Hew Republic" though it welcomes the denunciation/ denunciation as a atop long overdue, thinks Mr. Roosevelt will find himself under heavy attack if he goes as far even as embargoing the export of war- materials as proposed by Senator Pitt man. this aspect of the satter also leads His Majesty** Consul General at San Francisco to say In the report from which I have already quoted* "The a till small voice of self Interest (not umproapted by Japanese Influence) la, however, already making itself audible. Will the Pacific Coast already beset by economic difficulties, be content to jeopardise trade connections with a most important customer to maintain an ideal or redress the wrongs of a few American missionaries? It is predicted that, as the six months pass before the Treaty lapses, arguments against converting a threat Into action may present themselves la a fiercer light" • 4* According to the press of August 7th> Senator Key Plttnaan, Chairman of the Senate Foreign Relations Committee, has predicted that unless the attitude of Japan towards American citizens in China changed materially for the better Congress would authorise "retaliatory measures" at its next session. He hoped, however, that the Government ef Japan would be actuated by calmer reasoning and, by respecting the rights of American citizens, weald remove a stumbling block towards the restoration of the high degree of friendship that had so long existed between the two countries. He added, however, that the actions of the United States Government indicated quite clearly "that the American Government does net intend to recognise any new order in China" • - 4 • 8* Z am Bending copies of this despatch to Hia Majesty's Ambassadors at SJofejo and Shanghai. Z have tha honour to be. With the highest respeot. My Lord, Your Lordship's aost obedient, humble servant, (For tea Ambassador) (80S) ?*A4.» HASMm