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