Troafriea; Gopunoiolai: U.li. and .Lpuu' BRITISH iSMBASSY, WASHINGTON, D.C., January 17th, 1940. Wo. 62 My Lord, With reference to my despatch (ftf/ffa' 1312 of the 20th November, 1939, to \3dX^7jvj Sir Ronald Lindsay's despatch No, 831 of the 28th July, 1939, and to connected corres- pondence regarding the denunciation of the United States-Japanese Commercial Treaty, I have the honour to transmit herewith copies _ oT a long letter which Hr. Henry X*. Stirason, former United states Secretary of State, addressed on the 10th January to the "Mew York Times", proposing (i) a "moral embargo" on the export of iron ore, scrap iron and aviation spirit to Japan, and (11) passage of legisla- tion, such as has already been introduced into Congress, to prohibit tho expert to Japan "of arms, munitions and the raw materials out of which arms are made", buch action, in Hr. Stimson's viow, would redound both to the mor al credit and to tho material advantage of the United states. 2. Commenting on Mr. Stimson's letter the "New York Times" accepted the moral argument but/ The Right Honourable The Viscount halifax, K.G., etc., etc., etc., CB:ACEM:EK INK but had doubts about the material Interest. "Can we be certain", it asked, "that the imposition of an American embargo would not mean morely a diversion of Japanese war orders to other markets? V.'ould an American embargo have the moral support of the other nations which are signatories with us to the Nine-Power Treaty for the preservation of the territorial integrity of China?" These questions brought the "New York Times" a quantity of letters some of which took the view that an action which was morally right should be taken regardless of the attitude of others or of the material advantage or disadvantage which it might bring. In a second editorial the "New York Times" cautiously rejoined that, all the same, "to Impose a unilateral embargo on a nation with which we are at peace 13 a very grave step indeed. On moral as well as on practical grounds we have every reason to wish to be as certain as we possibly can be, before taking such a step, that its con- sequences will be beneficial". 3. alter Lippraann, the columnist, writing on the same day, expressly accepted Mr. gtlrnaon's moral judgment of the Japanese aggression and his "conception of the political responsibilities of the United States" but argued that this is not the prope:* time for Congress/ » -3- Congress to exercise its right to Impose an embargo. He quotes Hr. Stimson's view that "the very last thing which the Japanese Government desires is a war with the United States", and thinks it may he correct, "But", he continues, "the danger is not that Japan will declare war if Congress imposes an embargo; the danger is that Japan, relying upon the fact that the United States does not wish to go to war, is not really prepared to go to war, and, in view of the ivuropean situation, ought not to go to war, will be driven by resentment and necessity to commit new aggressions in the belief that it is safe to do so!!. rfhe proper course, in Lippraann's view, is to devise ways and means to reduce the arms traffic "without defying Japanese opinion in such a way that any Japanese Government v;ould have to make an equally spectacular reply", and concurrently to ''explore by negotiation the problem of a general settlement in the Par "'last" while keeping Chinese resistance i;oing with a loan to China until the end of the war in I3urope. to His Majesty1s Ambassadors/at Tokyo and Shanghai and to the High Commissioner for the United Kingdom at Ottawa. 4. I am sending copies o£^this despatch I have the honour to be, with the highest respect, My Lord, Your Lordship1s most obedient, humble sorvant, (MB) LOTKIAH