Trade; China (reprisals)_15/ ff~/59 No» 89* briww smbassy, washzhgtoh, ».o.f January 1989* My Lord* In paragraph 8 of my telegram Ho* 478 of the 83rd December, 1938, Z reported some outspoken remarks by Senator Key Pittraan, Chairman of the Foreign delations Committee of the Senate, on the American people's "dislike" of the German and Japanese governments. X now have the honour to report that on the 2nd January, Senator Pittman made some further remarks en the subject of Japan. 2. Asked by a reporter for hie own personal ?lew as to what should bo done la case the Japanese reply to the latest Amerloaa note regarding the Open Door la China should be unsatisfactory, the Senator Is reported to have replied: "If the Japanese continue la their actions Z would like to see our Government in sows way ostracise them". Such ostracism, ho explained, might take the form of aa embargo on Japanese goods entering the United States and, if the country wished to go further, they mighta through Congress, put aa embargo upon all export trade to Japan* "1 assume it would make the Japanese Government very angry" continued the senator. "They might retaliate by the confiscation of/ The Bight Honourable The Viscount Halifax, K. G., etc., etc»» etc. I '-h VALM :CB: AC2M: NT -2- of property of American citizens In Japan and even in China A are they have military control. They aight even declare that diplomatic relations are broken off* That ie ae far ae an intelligent government can go* X cannot conceive, however. that they would go any further* The Japanese statesmen are too intelligent to deelare war against the United States* In the first plaee such a declaration would be absurd* They know and we know that they do not intend to cross the Pacific Ocean to attack us* Such a declaration would do them no good and do us bo harm". 5* Senator Pit fan then explained the action which might in fact be taken to exert economic pressure on "dictator governments". Referring to section 58 of the last Tariff Act under which the President Is empowered to restrict imports from those nations which erect undue barriers against United States goods* he said "it is contended by those who have studied the statutes that the President has authority under certain circumstances to prohibit by proclamation imports from Japan or any other country that is guilty of acts specified in the law* 1% is my present opinion that such a statute was not intended by Congress to grant to the President the authority to place an embargo upon the export of goods to any country. The Neutrality Act does great such authority to the president in particular oases, but even then limits such authority to definitely described arms* ammunition and implements of war* This act would be entirely unnecessary if the President has/ Z3 •8- has the authority, under any tariff act, to place a general embargo upon the export of everything under certain conditions. In other words, if the people of this country and their representatives in Congress desire to stop the shipment of scrap iron, for instance, to Japan, their purpose can only he oarried on through an act of Congress* The question is: So they desire such an act of Congress? Hill the great peace societies of the country together with the charitable organisations and other organisations, place themselves on record as favoring such legislation, or will they oppose it? Their action in the matter will naturally have great weight with Congress.* His Majesty's Ambassadors at Tokyo and Shanghai. L^I have the honour to he, with the highest respect, My Lord, Your Lordship's most obedient, humble servant, Z am sending a^copy (SOD) V.A.L. MALLET H.M. Charge* d*Affaires