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We have recently received 3
telegrams from the F.O. about the Far
East.   The first (Flag A) suggests that
we should speak to the U.S.G. about the
attitude to be adopted in the event of a
^|^Soviet attack on fraperT.    The attached
''minute by Mr. Dening suggests the lines -
which this conversation might follow. >«*•
Flag B reports an approach by
the Sovie t Ambassador in London expressing
the view that the only effective check on
Japan would be a stern warning from the
U.S. and ourselves.
Flag C refers to your recent
conversation with Mr. Hull when the latter
put forward the suggestion that we should
encourage the moderates in Japan by some
small and limited concession in the economic
sphere.   H.M.Q. do not like this idea,
believing that concessions are more likely
to stiffen the extremists than to encourage
the moderates.   They think that a limited
deal might be necessary in cases where we
ourselves wish to obtain important supplies
from Japan, but that/^fcey should not be
made for any other motive.
As this question was raised with
you by Mr. Hull, and as the latest F.O.
telegram seems to indicate that the matter
is less urgent than was at first supposed
since an immediate attack on Russia seems
less likely, perhaps Y.E. would prefer to
speak to Mr. Hull about this later on
rather than raise it with Mr. Welles this
afternoon.
W'iH:HK
, 19U1