^;JttiR£E CONVERSATIONS WITH FOREIGN MINISTER NOMURA
talks covering the general field of Japanese-American relations in a
mutually constructive spirit."
December 18, 1939
Admiral Nomura asked me to call on him to-day at the Foreign
Office and in a conversation which lasted one hour and a half he
read to me, through Mr. Iguchi as interpreter, and then handed to
me the pro memoria that I at once conveyed to the Department.
The Minister informed me definitely that the Japanese Govern-
ment intends to open the Yangtze River to general navigation as
far as Nanking " in about two months." The Minister added that
for the time being certain restrictions would probably have to be
imposed on such navigation owing to the military operations in China,
The Minister definitely proposed a modus vivendi to carry on Japanese-
American commercial relations after the expiration of the present
treaty of commerce and navigation and expressed the hope that,
as little time is now left before the expiration of the treaty, negotia-
tions for a new treaty could commence shortly, if possible before
Christmas. I replied that I had no instructions with regard to this
matter and asked if the Minister desired me to communicate this
to my Government as a definite proposal from him. He replied in
the affirmative.
The Minister also touched on the following points :
 1.	Our problems were divided by the Minister into " positive " and
" negative " categories.   I  replied that between our two countries
there exist certain difference of opinion involving matters of funda-
mental principle, which as the Minister conceived them might not
fall within either of the above-mentioned categories*
 2.	In my conversation with the Minister on November 4, I do not
recall mentioning the possibility of bringing about in the United
States " a speedy " reversal of public opinion.
 3.	After Nomura had completed his statement and I had ex-
pressed my own appreciation o.f the Japanese Government's efforts
to improve relations between our two countries, I conveyed to him,
informally and fully, as under my Government's instructions, the
reaction  of the Department to the statements made to me by
the Minister on December 4.   irhis included the observation of the
Department that it feels that the efforts of the* authorities of Japan
thus far have little more than " touched the fringe of the problem."
 4.	With regard to the two " companies " and monopolies Nomura
said that it had become necessary to set up " economic blocs " among
Manchukuo, Japan, and China  in order to overcome difficulties
in questions of national defence.    But he declared that Japan has
no intention of excluding other .countries and is " quite ready to
welcome foreign capital."   When J asked the Minister " On a non-
discriminatory basis ? ", he replied merely that foreign participation
would be welcome in those enterpri ses.