(COPY) | STRICTLY CO ORAL STRICTLY CONFIDENTIAL During past months the Governments of the United States and of Japan, through the Secretary of State and the Japanese Ambassador in Washington, have engaged in protracted conversations directed toward exploring the possibility of reaching a sound basis for negotiations between the two countries relative to the maintenance of peace with order and Justice in the Pacific. The principles and policies which were under discussion in these conversations precluded pursuit by either Govern- ment of objectives of expansion by force or by threat of force. On July 24 last the President of the United States informed the Japanese Government through the Japanese Ambassador in Washington that he was willing to suggest to the Governments of Great Britain, of The Netherlands and [StKICILY CUf\ -2- and of China that they make a binding and solemn declaration that they had no aggressive intentions with regard to Indochina and that they would agree that the markets and raw materials of Indochina should be available to all Powers on equal terms. The Presi- dent stated further that he would be willing to suggest to the Powers mentioned that they undertake this decla- ration, in which the United States would be willing to Join, upon the understanding that the Government of Japan would be disposed to make a similar declaration and would be further disposed to withdraw its military and naval forces from Indochina. Notwithstanding these efforts, the Government of Japan has continued its military activities and its disposals of armed forces at various points in the Far 2ast and has occupied Indochina with its military, air and naval forces. The -3- The Government of the United States is in full sympathy with the desire expressed by the Japanese Government that there be provided a fresh basis for amicable and mutually profitable relations between our two countries. This Government's patience in seeking an acceptable basis for such an understanding has been demonstrated time and again during recent years and especially during recent months. This Government feels at the present stage that nothing short of the most complete candor on its part, in the light of evidence and indications which come to it from many sources, will at this moment tend to further the objectives sought. Such being the case, this Government now finds it necessary to say to the Government of Japan that if the Japanese Government takes any further steps in pursuance of a policy or program of military domination by force or threat ^^^^^^^^^ -4- or threat of force of neighboring countries, the Gov- ernment of the United States will be compelled to take immediately any and all steps which it may deem neces- sary toward safeguarding the legitimate rights and interests of the United States and American nationals and toward insuring the safety and security of the United States-