258 Mr A. G. Hard, Assistant Government Commissioner in Japan, to Department of External Affairs

Cablegram unnumbered TOKYO, 21 May 1940, 10.55 a.m.

Domei Sydney despatch, published in Japanese newspapers May 10th, disclosing sailing Queen Mary Mauretania May 8th suggests breach censorship regulations. Local press campaign against Netherlands East Indies not so militant. Understand fleet [1] intends immediate exercise south seas, provided that supplies forthcoming.

One half the army desires pact with Soviet other half desires aggression against Soviet. Navy has despatched undisclosed but presumed small units to Palau. One third fleet guarding fisheries in Soviet waters. Expect government will press large economic concessions.

HARD

1 This word was marked 'mutilated group'.

[AA: A981, JAPAN 181, iv]