Foreign Relations: U. S. - Japan BRITISH EMBASSY, WASHINGTON, 0* C* Kovember 2Gtu, 1939 Ho. ISIS ay Lord, At his press conference on the 17th Sovemfeea* the Acting Secretary of State, Mr. Sumner Welles, made whet has been reported at a reaffirmation of American sights in China* His remarks are said to have been by way of a rejoinder to the statement attributed to Mr» Yakichlro Suraa, Japanese Foreign Office spokesman at Shanghai the previous day, that the United States Government In official communications to Tokyo had admitted that America was not blind to new realities In Bast Asia* Mr* Welles appeals to have pointed out that the position of the United States In regard to developments in Bast Asia varies in no way today from that enunciated in successive communications to the Japanese Government, notably of the 29th April, 1934, the 6th Oetober 1958 and the 31st December 1936 (see my predecessor's despatches respectively Wos# 565 of the 11th May 1934, 950 of the 31st October 1938, and 6 of the 3rd January 1939). Mr* Welles* reaffirmation, while held to imply no Interference with the discussions whieh Mr* Grew has been conducting at Tofeyo, is inter* preted however as signifying that the United States Government does not contemplate any surrender to the Japanese at a time when Great Britain may be preparing the way for a partial retreat from her own position in China* The Right Honourable The Viscount Halifax, I . &*, ete etc 3 China, oa the other hand there la no disposition to believe either that, with Great Britain involved in war in Europe, the United States contemplate the avowed protection of British Interests in the Far Sast except to the extent that the maintenance of her own position thereof and Mr. Hall's statement to the Japanese AmbassgRtbr that If Japan*e "friendly advice" to ?ranee and Great Britain to withdraw from Eastern Asia were accepted or enforced, it would produce great difflenities for Japanese-* American relations, is of obvious advantage to ourselves* Nor is there any disposition to believe that President Roosevelt will follow the lead of Senator Key Pittraan (see Mr. Mellette despatch Ho* 29 of the 10th January last) and invite Congress to vote an economic embargo against Japan if relations are still unsatisfactory next January when the now denounced United States-Japanese commercial treaty of 1911 expires, though he might impose the 10$ surtax against Japanese goods, similar to that already imposed against German goods, on the ground that it was discriminating in Manchuria and elsewhere against American trade* S* I am sending copies of this despatch to His Majesty's embassadors at Teklo and Shanghai and to the High Commissioner for the United Kingdom in Ottawa* I have the honour to be, with the highest respect, tty Lord, Your Lordship's most obedient, humble servant,