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bly occurs." I continued, "This is the situation in Europe today. It is to avoid just such a cataclysm that the 21 American nations have offered a program and are pleading to all other civilized nations to embrace it and give it support without a day's delay." ... I said that there was never before such an opportunity for some important country in Europe to furnish leadership with just this sort of a program as I had outlined; that a few addresses proclaiming it and supporting it would result in an amazing awakening of peace and good neighbor sentiment and that a wave of grateful public sentiment would sweep over Europe and over the entire Western World. ... He again came back to the question of the time not being propitious for a movement in support of an alternative program for economic and peace restoration. I replied that if each nation waits until the time is exactly right from its standpoint, then I must again repeat that the time never would become propitious; that the experience of recent years in Europe clearly demonstrates this view; that it has not been possible for the nations of Europe to settle any one or two of the 7 or 8 point program involved, or, in other words, the situation is merely drifting amidst increasing turbulence and uproar in Europe, as well as in certain other parts of the world

I elaborated here on the general situation in Europe, referring to it as serious and what many would call dangerous. I remarked that either another war or a deep-seated economic panic would be utterly destructive of all that is worthwhile in the affairs of the western world, and yet absolutely nothing in Europe is being done in the way of permanent planning in the direction of peace and general stability. I said that today there are probably 4 million wage-earners in Germany engaged in armament production, who, with their families, comprise 15 to 20 million of the entire German population of 70 million; that relative numbers in the United States, Great Britain, Italy, France, and other countries, are likewise engaged; that within another eighteen months, when the resources of most countries necessary for further increased armaments are exhausted, it would not be humanly possible to find other gainful and productive employment for all the millions and millions and millions of wage-earners now engaged in military production; and that yet, with the roar of the economic and the military Niagara below, now within distinct hearing, and with the certain knowledge that the happening of either catastrophe would be fatal, nations are drifting and drifting and drifting with no broad or permanent or peaceful planning.

I said that it is in these circumstances that this country, as stated before, while taking every precaution to keep aloof from political

and military involvements abroad, strongly feels that each civilized country right now has the unshirkable responsibility of making a real contribution to promote peace and normal international relationships; that therefore it and the other American nations are behind the broad economic program and its kindred provisions to which I had referred, and that naturally we are looking longingly to leading countries in Europe to offer a similar contribution to peace and economic well-being; that unless they do awaken and give support to such a program and movement, an economic collapse in Europe within 18 to 24 months is inevitable.

C[ORDELL] H[ULL]

793.94/8761

85

Memorandum by the Secretary of State Regarding a Conversation With the Japanese Ambassador (Saito)

[WASHINGTON,] July 12, 1937.

The Japanese Ambassador called by his own request. He said that he had two things to discuss or to report on-one was that Japan had two ships taking part in the search for Amelia Earhart 31 and that their officials at Hawaii and other points had been instructed to keep closely posted on the search in the hope of being of some help. I thanked him very earnestly for this fine spirit of friendliness and cooperation on the part of his government.

The Ambassador then handed me a manuscript containing six paragraphs or points relative to the Japanese-Chinese military trouble which commenced on July 7th. A copy of the instrument of writing is attached hereto.31a The Ambassador read each numbered paragraph for the purpose of any comment I might wish to make. I inquired, when he read the first paragraph, how many troops there were in the Japanese detachment stationed at Fengtai on July 7th. He replied that he did not know but that he supposed it was a hundred or some such number. He said that he imagined this detachment, which was unexpectedly fired upon by Chinese troops, was on the other side of the river from the Chinese troops at the Marco Polo Bridge. When I suggested that Japanese troops had been understood to be camped at various points between the two 31 American aviatrix lost in Pacific Ocean on a round-the-world flight. 31 Not printed.

railroads leading into Peking, he said he was not a student of the geography of this locality. He said that these Japanese troops were located in this Chinese area under the same authority that United States guards and those of three or four other countries are at present stationed in Peking and other Chinese cities. I expressed deep regret at the incident during the reading of each paragraph. He said that Chiang Kai-shek is behind the entire movement; that the idea, in the Ambassador's opinion, is to strengthen his prestige in northern China and especially with certain elements of Chinese who have charged him with being too lax and non-aggressive in his treatment of the Japanese situation. The Ambassador remarked that he still had some hope the matter might be composed, and then added that the Chinese must know that the Japanese could bring their fleet around to the Chinese coast and take complete control of the situation.

At the conclusion of the reading, I specially emphasized with approval the remarks of the Ambassador about the efforts of his government to work out a friendly settlement without war. I elaborated upon the futility of any other course and the awful consequences of war. I said that a great civilized first-class power like Japan not only could afford to exercise general self-restraint in such circumstances but that in the long run it was far better that this should characterize the attitude and policy of his government; that I have been looking forward with increasing encouragement to an early period when our two great nations in particular, while other important countries are hesitating to go forward and in fact are slipping backward fundamentally with respect to their economic and standard-of-living situations, would have the opportunity, as well as the great responsibility, for world leadership with a constructive program like the basic program proclaimed at Buenos Aires 32 for the purpose of restoring and preserving stable conditions of business and of peace, which program I elaborated on; that no two great countries have rarely had such an opportunity in these respects as seems to be ahead for our two countries and that of course it means everything from this viewpoint, as well as others, that serious military operations should not be allowed to get under way; and again I expressed my strongest approval of the disposition and self-restraint which his government is manifesting, judging by the statements of

See Department of State Conference Series 33 (pub. 1088), Report of the Delegation of the United States of America to the Inter-American Conference for the Maintenance of Peace, Buenos Aires, Argentina, December 1-23, 1936 (Washington, Government Printing Office, 1937).

the Ambassador. He said that he would be glad to keep me advised as to any further developments of consequence. I replied that of course this country is greatly interested and greatly concerned in conditions of peace in every part of the world, and that I would welcome anything further in the way of information from time to time, and would be glad to treat in very strictest confidence any confidential information he might care to give me on the subject. I again emphasized the great injury to the victor as well as the vanquished in case of any important war in this day and time, of the great concern of this government for peace everywhere and of my earnest hope that our two countries would soon find themselves in a situation to accentuate a program such as we proclaimed in the main at Buenos Aires. The Ambassador indicated his interest and approval. I concluded by thanking him for his offer to furnish further information.

86

C[ORDELL] H[ULL]

Press Releases, vol. XVII, p. 41

Statement by the Secretary of State, July 16, 1937

I have been receiving from many sources inquiries and suggestions arising out of disturbed situations in various parts of the world.

Unquestionably there are in a number of regions tensions and strains which on their face involve only countries that are near neighbors but which in ultimate analysis are of inevitable concern to the whole world. Any situation in which armed hostilities are in progress or are threatened is a situation wherein rights and interests of all nations either are or may be seriously affected. There can be no serious hostilities anywhere in the world which will not one way or another affect interests or rights or obligations of this country. I therefore feel warranted in making—in fact, I feel it a duty to make a statement of this Government's position in regard to international problems and situations with respect to which this country feels deep concern.

This country constantly and consistently advocates maintenance of peace. We advocate national and international self-restraint. We advocate abstinence by all nations from use of force in pursuit of policy and from interference in the internal affairs of other nations. We advocate adjustment of problems in international relations by processes of peaceful negotiation and agreement. We advocate faith

ful observance of international agreements. Upholding the principle of the sanctity of treaties, we believe in modification of provisions of treaties, when need therefor arises, by orderly processes carried out in a spirit of mutual helpfulness and accommodation. We believe in respect by all nations for the rights of others and performance by all nations of established obligations. We stand for revitalizing and strengthening of international law. We advocate steps toward promotion of economic security and stability the world over. We advocate lowering or removing of excessive barriers in international trade. We seek effective equality of commercial opportunity and we urge upon all nations application of the principle of equality of treatment. We believe in limitation and reduction of armament. Realizing the necessity for maintaining armed forces adequate for national security, we are prepared to reduce or to increase our own armed forces in proportion to reductions or increases made by other countries. We avoid entering into alliances or entangling commitments but we believe in cooperative effort by peaceful and practicable means in support of the principles hereinbefore stated.

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87

Memorandum by the Secretary of State Regarding a Conversation With the Japanese Ambassador (Saito)

[WASHINGTON,] July 21, 1937.38 The Ambassador of Japan called this morning at my request. After brief preliminaries, I very seriously addressed the Ambassador and said that, of course, he must be fully aware that when two nations comprising 500 million people are engaged in a controversy in which danger of general hostilities appear imminent, this country cannot help but be greatly interested and concerned; that it is in the light of this situation and of the intense desire of this country for peace everywhere that I have been undertaking to confer with the ambassadors from both Japan and China from time to time regarding developments, present and prospective, in the danger zone; that I have approached each government, in a spirit of genuine friendliness and impartiality in an earnest effort to contribute something to the

83 On this day Secretary Hull asked the Chinese Ambassador to call and made to him a statement along the same lines as the one recorded in this memorandum.

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