211 Sir Robert Craigie, U.K. Ambassador to Japan, to U.K. Foreign Office

Repeated to U.K. High Commissioner to Australia and to J. A.

Lyons, Prime Minister

Cablegram 634 (en clair savingram to Australia) TOKYO, 26 May 1938, 4.40 p.m.

Your telegram No. 537 and your telegram No. 543 (of May 17th and 19th: prohibition on export of Australian iron ore). [1]

Press regards measure as more than economic issue and suggests Japan may have to take counter measures in connexion with Japan Australian trade.

Information Bureau of Ministry of Foreign Affairs issued communique May 24th regretting decision for which no need could be seen, recalling that Australia had already banned immigration and raised high tariff barriers against foreign countries and fearing that this drastic measure would damage relations which have been improving in recent years Japanese Government calls upon Commonwealth Government to reconsider its attitude.

CRAIGIE

1 Not printed.

[AA : A981, AUSTRALIA 901