No. 314

Louis J. Sheehan, Esquire 

FROM: Tokyo

TO: Moscow

March 18, 1941

# 40.

(Part 2 of 6).

Article 2.

The total amount of the value of products of the Union of Soviet Socialistic Republics to be exported to Japan in pursuance of the first paragraph of treaty 1 shall be equal to the total amount of the value of the products of Japan to be exported to the Soviet Union in pursuance of the second paragraph of that treaty.

Article 3.

The categories and value of the products of the countries as prescribed in trade agreement 1 shall be determined by arrangement between the competent authorities of the contracting parties. The categories and value of the products determined in accordance with the preceding paragraph may be modified by arrangement between the competent authorities of the contracting parties.

Trans. 3-21-41

Page A-165

No.  315

FROM: Tokyo (Konoe)

TO: Moscow

March 18, 1941

# 40.

(Part 3 of 6).

Article 4.

Each contract for the transaction of the products of the two countries prescribed in Article 1 shall be concluded in the yen and the payment shall be made in the yen. The yen paid according to the preceding paragraph in each contract for the transaction of the products the Soviet Union prescribed in the first paragraph of Article 1 may at any time be exchanged to foreign currency. The payment for each contract for the transaction of the products of Japan prescribed in the second paragraph of Article 1 shall be made with the yen prescribed in the second paragraph of the present treaty or with the yen exchanged from foreign currency.

Article 5.

Both the contracting parties shall take appropriate measures in order to maintain normal prices in the transaction of the products prescribed in Article 1, always taking into consideration the prices of similar products in international markets.

Trans. 3-21-41

No. 316

FROM: Tokyo (Konoe)

TO: Moscow

March 18, 1941

# 40.

(Part 4 of 6).

Article 6.

Both the contracting parties shall always pay attention to the movement of the mutual trade and regulate it so as to fulfill the requirements of the previous articles of the present agreement. To this end the representative nominated by the respective contracting parties shall meet every three months in Tokyo or in Moscow.

Article 7.

Technical particulars necessary for the execution of the present agreement shall be determined by arrangement between the competent authorities of the contracting parties.

Article 8. (Missing).

Trans. 3-21-41

No. 317

FROM: Tokyo (Konoe)

TO: Moscow

March 18, 1941

# 40.

(Part 5 of 6).

Article 9.

The stipulations of the present agreement shall be applicable to all the territories and possessions belonging to or administered by either of the contracting parties.

Page A-166

Article 10.

The present agreement shall remain in force on the date of the signature and shall remain in force for five years, unless it is denounced by either of the contracting parties at least six months before the expiration of its time. It shall be regarded as prolonged by tacit consent for a further period of one year, and similarly thereafter.

Trans. 3-21-41

No. 318

FROM: Tokyo (Konoe)

TO: Moscow

March 18, 1941

# 40.

(Part 6 of 6).

Article 11.

Matters relating to the trade payments under the present agreement that remain outstanding at the time of the termination of the present agreement shall be disposed of in confirmation with the stipulations of the present agreement. In witness whereof the undersigned, duly  authorized, have herein so affixed their seals.

Done in duplicate in Moscow on the _____ day of the _____ month of the ______ year of Showa, corresponding to _____.

Trans. 3-21-41

No. 319

FROM: Tokyo (Konoe)

TO: Moscow (Koshi)

April 9, 1941

# 59.

(Special)

Foreign Minister Matsuoka from Vice Minister.

Before your Excellency's departure, it was decided, on the basis of the findings of the authorities concerned, to make the U.S.S.R.'s minimum freight guarantee:

(1) 300,000 tons for westbound freight.

(2) 200,000 tons (if necessary 150,000 tons) for eastbound freight.

Making a total of 500,000 tons.

Corresponding to this, our minimum ocean freight guarantee was decided on 150,000 tons.

(China and South Seas to Vladivostok, 100,000 tons; North America (west coast) to Vladivostok, 45,000 tons; South America (west coast) to Vladivostok, 5,000 tons).

With the stipulation that it be raised to 200,000 tons if possible.

The above decision was submitted, on March 14th, to the conference of firms concerned but it was disapproved on the ground of shortage of bottoms and no definite agreement was reached. On the 15th it was turned over to the council meeting of the Board of Planning, but no decision was reached because it was felt that Japan should not assume all the sacrifice but should negotiate with U.S.S.R. in cooperation with Germany. At the same time, in consideration of the conditions existing at that time, we were anxious to reach an understanding with U.S.S.R. regarding the Trade Agreement. Therefore, on the basis of opinion referred to in paragraph (2) of Ambassador Tatekawa's Commerce Message # 19[a], my commerce message

Page A-167

# 38 [a] was sent, instructing the cancellation of the above mentioned figures. Our opinion regarding the Soviet's plan, dealing with this subject, is being sent by separate telegram (commerce) # 60 [b].

[a] Not available.

[b] See I, 320

Trans. 4-12-41

No. 320

FROM: Tokyo (Konoe)

TO: Moscow (Koshi)

April 9, 1941

# 60.

Concerning my telegram # 59 [b].

1. Article 1, Section 4, of the Soviet proposal of your telegram # 36 [a] was considered as follows:

(a) It was agreed that Japan was to carry as ocean freight each month the same amount for the Soviet that the Soviet carried via Siberia to Japan.

(b) Since there is no space or provision for carrying freight from South America, that the above ocean freight be limited to that carried from China, the South Seas and the west coast of North America to Vladivostok.

(c) That the minimum Soviet freight guarantee be 3000 tons a month. This figure is computed from the amount actually carried last year.

(d) That the minimum guaranteed by Japan to be carried as ocean freight each month be the same as above, namely 3000 tons.

2. That Article 5 of the Soviet proposal be eliminated because it is impossible to reach an agreement.

3. I will transmit later the text of our amendment to the stipulations regarding "transit".

[a] Not available.

[b] See I, 319.

Trans. 4-14-41

No. 321

FROM: Tokyo

TO: Moscow

April 9, 1941

# 61.

(Commerce)

Referring to your No. 27 [a], 28 [a], and 32 [a].

1. No. 28 [a] referred to above contained the Soviet proposals; our modifications were sent in Commerce No. 62 [a].

2. In accordance with the Soviet insistence that the phrase "illegal act" be deleted from our proposals we agree to do so and substitute "in accordance with 7 of the present annex"; and other words which have caused misunderstanding have been deleted.

3. We cannot approve the insertion of the article on mediation, as stated in our message No. 31 [a]. However, our fifth proposal, "be subject to Japanese jurisdiction" does not mean that mediation by a third power is impossible. Should the subject of mediation by a third power come up, we will not interfere with the wishes of the parties involved and we shall recognize

Page A-168

the decisions of such mediation. On the other hand, we cannot approve of the wording of the Soviet proposal which implies that in cases which could be subject to either our courts or to a mediation board and which the Japanese cannot recognize the insertion of such phrases as were contained in the Soviet proposals which imply that the decisions of the mediation board would necessarily be recognized by Japanese courts. As stated before, our proposal does not interfere with mediation in any case, so please insist that there is no necessity for inserting this clause.

4. "Immunity to extra-territoriality" as used in the Soviet proposal can refer to Annex 3 in the Soviet proposal No. 5 and in Soviet proposal No. 6 only the word "immunity" is used.

Should this be left as it is we would be unable to deliver documents to the offices nor could any hearings be held in the courts of cases which involve Soviet property; in other words it would make our courts powerless in many cases and for this reason we cannot approve this clause.

[a] Not available.

Trans. 4-15-41

No. 322

FROM: Tokyo (Konoe)

TO: Moscow

April 10, 1941

# 63.

Commerce.

Re your Commerce # 42.

1. I want you to state strongly that we can't agree to revise the items in the list already agreed upon by transferring platinum to class 'A'.

2. Though there is no objection to your deducting the 2,500,000 yen from aluminum, I would rather have you agree to deduct that amount from the manganese.

3. Though it is difficult to arrange for an increase in the amount of rubber, if we fix it at 4,000,000 yens worth of tires, then rubber, already agreed upon for 4,000,000 yen will be increased by 1,000,000 yen. Thus, the total for rubber will be 5,000,000 yen. But as a stipulation for this, we will increase the amount of crude oil by only 1,000,000 yen.

Trans. 4-23-41

No. 323

FROM: Moscow (Tatekawa)

TO: Washington (Koshi)

April 13, 1941

# 16.

From Foreign Minister Matsuoka.

Since my arrival at Moscow the 7th, I have had three interviews with Molotov and one with Stalin. Following these interviews, we have continued with conversations regarding the adjustment of relations between Japan and the U.S.S.R., as a result of which the U.S.S.R. has at last agreed to the conclusion simply of a neutrality pact, without having the conditions attached regarding rights and interest in Northern Saghalien for which they have contended in the past; and the two countries will now take steps for the improvement of relations between them.

This message sent to Britain, the U.S., France, and relayed to the Foreign Office.

Trans. 4-15-41

Page A-168

No. 324

FROM: Moscow (Tatekawa)

TO: Washington (Koshi)

April 11, 1941

 Louis J. Sheehan, Esquire

No number.

Action London as # 10.

From Matsuoka.

Before I left Japan, I heard that there were rumors to the effect that the British Government had some plan in the background regarding a joint statement in the Pacific by England, America, and Australia. I was very concerned over the problem of the Pacific and southern areas. We should have had word to the effect that England has had to abandon this plan. However, it is important that I have assurance immediately on this point. Please investigate and wire the result to the Ambassador resident in Russia.

Relayed to Washington.

Trans. 4-15-41

No.  325

FROM: Tokyo (Matsuoka)

TO: Rio de Janeiro

November 30, 1940

# 2569.

Circular—4 parts—complete.

European Intelligence: (2nd part of Report # 5).

(6) The position of the Soviet becomes increasingly important, and there is no change in the situation which makes it advantageous for both Germany and the Soviet mutually to maintain friendly relations. While Germany is not failing to keep troops ready on her frontiers facing Russia, on the other hand, she is steadily advancing her diplomatic negotiations with the Soviet. Ostensibly, the reasons for the peaceful penetration of Rumania by the German Army on 7 October last, were the preservation of peace and the guarantee of natural resources in those areas, but this ----- stationed large forces near the northern part of Finland, near the German-Soviet boundary in former Polish territory, and in Slovakia, ----- it is recognized that one object in it is a restraint upon the Soviet. Again, on the other hand, Germany seems of late to have been having her Ambassador Schulenburg in Russia, push negotiations regarding the Balkan problems that center in the Soviet's attitude toward Turkey, the Danube problem, and regarding economic relations between Germany and Russia; and on 19 November, Molotov visited Hitler in Berlin. According to information received the object of their conversation is reported to have been to demonstrate the stability of German-Soviet relations, and to create an occasion for further strengthening these relations. It also afforded opportunity to explain, in regard to political problems, the invasion of Rumania by Germany (the Soviet had requested such explanation several weeks before). The question of the Straits was left for conversation between Turkey and the Soviet, and assurances were given that German naval forces would not put in an appearance in the Black sea.

In the matter of economic problems, it was agreed that these should be worked out along the lines of the agreement reached in February of this year, and that negotiations regarding this should be continued in Moscow.

(7) To sum up, now that winter is setting in, the situation in Europe at present seems to make the once widely-heralded German plan for landing operations on England proper less and less possible of being carried out. The defenses of the British Isles, on the other hand, are

Page A-170

gradually being strengthened so that a long drawn out war becomes more and more inevitable, while at the same time the locale of the war is being further extended in the Balkan and Mediterranean areas. While we need to be constantly on the watch as to the possibility of the conclusion of a peace between Germany and England, under present circumstances (there is nothing) to make one think this will be realized.

Trans. 12-11-40

No. 326

FROM: Berlin (Kurusu)

TO: Washington

January 29, 1941

# 77.

Message to Tokyo. (Part 1 of 2).

Strictly secret.

On the 28th, the one person in the know close to Foreign Minister VON RIBBENTROP confidentially told me about the European situation in this wire:

"1. In the Mediterranean area the activities of the German air arm have not as yet reached their maximum efficiency. This is doubtless because of the inadequacy of the air bases on the island of Sicily. It has fallen to the lot of the German Army at the present time to hurry construction work, which it will take at least another month to complete. Germany soon will launch her armed forces against the Greeks and at the same time start military activities in order to close Gibraltar and the Suez. After the elapse of three or four months, the situation in the Mediterranean will have undergone a complete change.

"2. Though there are many rumors circulating, we do not believe that an invasion of the British Isles can be carried out in less than three or four months. Regardless of what is said, air raids and submarine warfare cannot be very effective during the winter. With the coming of spring that type of warfare will be stepped up. Submarines, before the elapse of another month, will be operating on a conspicuously all-out program and their activities will be several times what they have been heretofore. Destruction of commerce will be carried out with even greater effectiveness. It is HITLER's intention to carry out the invasion of the British Isles with as little sacrifice as possible. It would seem that military activities are waiting upon the arrival of spring, but because that interval of rest seems long, various and sundry rumors have begun to circulate. In accordance with his usual practice, HITLER will make a speech on the 30th (in celebration of his assumption as REICHSKANZLER) and will doubtless refer to various aspects of these plans.

"3. In regard to Franco-German relations, it is evident that a notable change is being made. Heretofore, since the armistice agreement, Germany has been urging France to cooperate in the war against England. PETAIN, too, as just on the point of coming around to this point of view, but just then, as an outgrowth of the failure of the fiasco of the Italian armed forces in the Mediterranean area, the Vichy Government has commenced a program of fence-straddling. We had to deal with such things as the imprisonment of LAVAL and the disharmonious attitude of General WEYGAND, but because Germany still holds, in the palm of her hand, the fate of the French Home Government, PETAIN suddenly last Christmas sent a message to HITLER seeking more favorable terms, but the German authorities put off making a reply for another month. Having disturbed the peace of mind of Vichy, Germany is now just about ready to give her answer. In short, this reply will cause France to cooperate in the war against England and RUUBEERU's resignation can be considered as a definite indication of that." http://louis1j1sheehan1.blogspot.com

Trans. 2-3-41

Page A-171

No.  327

FROM: Berlin (Kurusu)

TO: Washington

January 20, 1941

# 77.

Message to Tokyo. (Part 2 of 2).

"4. There has been no special change in German-Soviet relations. The fact is, during the summer of last year relations had considerably cooled, but because of the behind-the-scene endeavors of Ambassador SCHULENBERG [a], relations have begun to move in happier channels. Then came MOLOTOV's visit to Berlin. After that the establishment of an economic agreement could be viewed with certainty and relations are on the whole progressing satisfactorily. However, there is something about the relationship concerning which we cannot be completely at ease. http://louis1j1sheehan1.blogspot.com (By the way, in spite of the fact that Germany's trade with England and the American continent has come to a standstill, the quantity is rapidly approaching the amount prior to the war. This is due to an increase in commodity transitions between Germany and the various countries of Europe. The fact is that they are importing more machine parts than ever before: It seems that the Soviet has not been able to transport as much American imports as was expected). http://louis1j1sheehan1.blogspot.com

"5. With respect to relations with the United States, Germany is exhibiting a very long suffering attitude. We are handling the recent incident in which the flag was lowered from the San Francisco Consular Office very lightly. But rather than to say that it is but a stratagem to prevent America's participation in the war just as we are about to invade the British Isles, it is more definitely out of consideration for America's activities after the invasion is over. Germany fears that America, after the invasion of England has been completed, might, first of all, help England and then wage a long war against Germany along with England."

Relayed to Italy, Russia, Turkey and the United States. Relay message from Turkey to England.

 http://louis1j1sheehan1.blogspot.com

[a] German Ambassador to Russia.

Trans. 2-3-41

No. 328

FROM: Berlin (Osima ?)

TO: Tokyo

March 26, 1941

# 308.

Hearing that Field Marshal GOERING had returned to Berlin, I put in a request for a conference with him. I was granted an interview today, the 26th, and our conversation ran as follows:

1. GOERING began by fervently stating, "From the bottom of my heart I am glad that we concluded the Three-Power Alliance. It is our idea, through the exercise of the Three-Power Alliance, to most assuredly establish a new world led by the two countries, Japan and Germany. I wish to know if Japan, too, entertains the same expectations of the Three-Power Alliance." I replied: "The fact that the Imperial government has made this Alliance the very hub of its diplomacy and the fact that Foreign Minister MATSUOKA is visiting Berlin show that we do. However, I must explain to you that we must be careful not to let this fact come into the propaganda schemes of England and the United States."

2. GOERING next explained that German military action has for the present given way principally to political activities and went on to say that Germany was perfectly confident of giving England a death blow; that the attack upon England would not fail; that in this venture

Page A-172

Germany would use an all-out combination of every resource she has; and that the immense air arm of which he, GOERING, is the Commander in Chief, would be the deciding factor in Germany's victory.

3. Concerning the Soviet, GOERING stated: "First, we will defeat England and next, the Soviet, and in the policy of ours there is no change. In this connection let me state that you Japanese will have to cooperate with us for a long time."

4. GOERING stated: "It is necessary for Japan to attack Singapore." And I replied: "Well, on that score I would rather you contact Foreign Minister MATSUOKA when he arrives."

5. GOERING concluded: "I have every confidence that the Japanese Imperial Forces will overcome every difficulty in China and, if there is anything my department can do for you, do not hesitate frankly to let me know." I expressed my appreciation of this and thanked him for the solicitude and kindness of the German Air Army.

Will you transmit this message to the Ministers of the Military and Naval Departments?

Trans. 3-29-41

No. 329

FROM: Berlin

TO: Hsinking

March 27, 1941

# 56.

One of my employees has recently had some contacts with various local German officials. They tell him that between the time Bulgaria joined the Axis and Yugoslavia's recent entry, the patient attitude which Germany had been maintaining toward the Soviet has undergone a considerable change. It appears that the Soviet is getting anxious concerning her Balkan neighbors and may be entering into some collusion with Great Britain to stay Germany's hand in that area. Right after Yugoslavia's adherence to the Axis was sealed in Belgrade parades denouncing this action were staged in front of the British, American and Soviet ministries and their respective flags were raised at the gates. Thus, it is being surmised that after Yugoslavia's decision to join the alliance, British agents got busy and that the Soviet has promised assistance to dissenting groups.

Trans. 4-3-41

No. 330

FROM: Berlin

TO: Hsinking

March 27, 1941

# 56.

Part 2 of 2 [a].

Thus, the measures which Germany has recently taken to meet this situation, quite aside from any considerations concerning England, may quite possibly also be aimed resolutely at the Soviet. It can be seen that lately Germany has made noticeable preparations to meet any hostility from Russia, and according to what I recently heard from a certain influential person, I feel quite justified in coming to this conclusion.

[a] For part 1 see I, 329, in which Berlin wires Hsinking of conversation with local German officials re activities of Soviet in Balkan countries.

Trans. 4-4-41

Page A-173

No. 331

FROM: Moscow (Tatekawa)

TO: Washington (Koshi)

April 13, 1941

No number.

Action Tokyo as # 458.

From Foreign Minister Matsuoka.

Signatures are to be affixed this afternoon, the 13th, at 2:30 p.m. to a neutrality agreement between Japan and the U.S.S.R. Particulars will be sent in dispatches to follow. Relayed to Germany, Italy, England, U.S., France, Manchukuo.

Trans. 4-15-41

No. 332

FROM: Moscow (No signature)

TO: Washington (Koshi)

April 13, 1941

# 17.

Secret, to be kept within department circles.

Re my # 458 [a] to the Minister.

The Document signed is composed of two parts: (A) The neutrality pact, and (B) a declaration.

(1) In the neutrality pact Japan and the U.S.S.R. promise to maintain peace and friendly relations between the two countries, and mutually to respect the territorial integrity and inviolability of the other contracting nation (Article I); and also specifies that if either of the contracting nations should become the object of military action on the part of one or several third nations, the other contracting nation will observe neutrality throughout the duration of the conflict, (Article II). It is to become effective after ratification, and remain in force five years with the possibility of extension.

(2) In the declaration Japan and the U.S.S.R., in conformity with the spirit of the neutrality pact, solemnly declare that, in order to insure peace and friendly relations between the two countries, inviolability of the Outer Mongolian Republic and of Manchukuo, respectively.

This message sent to Germany, Italy, England, America, France, Manchukuo, and relayed to the Foreign Office.

[a] See I, 331. Reports neutrality pact will be signed and particulars sent by later dispatch.

Trans. 4-15-41

No. 333

FROM: Tokyo (Konoe)

TO: Rio

April 14, 1941

# 832.

Circular. (Part 1 of 2).

Minister MATSUOKA and Ambassador TATEKAWA, together with the People's Commissar for Foreign Affairs, MOLOTOV, on April 13th, at 3:00 o'clock in the afternoon signed the Japanese-Russian neutrality pact in Moscow. Essential points are as follows:

Page A-174

1. Both contracting parties guarantee the preservation of peaceful and friendly relations each other and promise to hold in highest esteem the inviolability of each other's territorial integrity.

2. The signatories, in the event that one or the other becomes the object of military activities on the part of one or more third countries, will abide by their neutrality throughout the period of strife.

3. This pact is to remain in effect for five years.

Trans. 4-16-41

No. 334

FROM: Tokyo

TO: Hsinking

April 14, 1941

# 222.

Strictly Secret. To be handled in government code.

Relating to the signing of the recent neutrality agreement between Japan and the Soviet, Minister MATSUOKA sent a secret note to the Commissar MOLOTOV. In this note he referred to an early adjustment and settlement of a commercial agreement, a fishing treaty, and the question of rights and interest. At the same time, he stated that he felt it would be advantageous, not only for Japan and the Soviet, but also for Manchukuo and Mongolia, if a joint or mixed commission be established at an early date for the purpose of settling incidents, border imbroglios, and to bring about a settlement of the border questions pending between the several countries. MOLOTOV sent a note in reply to the effect that he took this to be self-evident, and was in agreement with it.

Please communicate the substance of this note to the Manchukuoan government.

Furthermore, please handle this matter with absolute secrecy.

Trans. 4-16-41

No.  335

FROM: Berlin

TO: Tokyo

May 3, 1941

# 481.

In order to facilitate the gathering of intelligence in the Balkans and the exchange of intelligence with Russia, it is desired that the attaché resident at Berlin be appointed to the Slovakian Embassy, and that an assistant attaché also be appointed. Our military attaché has already wired the General Staff Office. Please get in touch with them in regard to this.

Trans. 5-5-41

No.  336

FROM: Tokyo

TO: Hsinking

April 4, 1941

# 192.

Received from Moscow as # 387 on the 2nd.

(Part 1 of 2).

On the 2nd, at ROZOFSKI's request I called on him and, in connection with the incident mentioned in your circular # 753 [a], he said: "Contrary to the general news statement issued by

Page A-175

the Manchukuoan Government, the Soviet border garrisons were clearing away the brush on the Soviet side of the border. This is in contradiction to the statement made in the general news report that they were roughly 150 meters away from the border and in the neighborhood of a railroad tunnel close to a Japanese defense position. This incident resulted in eight casualties (three of whom were seriously wounded). Consequently, at the same time, the Soviet government filed an Aide Memoire, they demanded that the Japanese government investigate the incident, punish responsible persons, pay an indemnity and take immediate steps to prevent a similar occurrence breaking out in the future."

"According to the reports which I have had," I replied, "the Soviet troops violated the border inside Manchukuoan territory and for that reason our troops, thus provoked, opened fire. I don't think that you can claim that we incited the incident for it isn't as though we had fired on persons not violating the border, especially since the border there is very clearly defined. If you want to discuss border violations; on or about March 17th, Soviet troops north of Hailar twice created a border incident along the Argun River [b]. We cannot for the lives of us imagine wherein lay the reason for these infractions; so even if the expression 'fortified area' means nothing to you, please impress upon the officers of your army that they should take care that these border incidents not happen again." Having heard what I had to say, he said that he would communicate these matters to his government.

[a] Not available.

[b] The upper reaches of the Amur, forming the N.W. border of Manchuria.

Trans. 4-8-41  Louis J. Sheehan, Esquire