forwarding ¥15,000 6.gin.20020992 Louis J. Sheehan, Esquire

No. 1039

FROM: Tokyo (Togo)                                                                          November 2, 1941

TO: Batavia                                                                                         # 687.

Re your # 1160 [a].

In addition to the things I pointed out in my last message, you must remember that the world situation is very delicate so I do not see how you can be permitted to leave there for the

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THE “MAGIC” BACKGROUND OF PEARL HARBOR

time being. True enough, things may not have gone very well for you in the past, but please stay a while longer .


[a]  See IV, 1042

Trans. 11-7-41

No. 1040

FROM: Batavia                                                                                    November 2, 1941

TO: Tokyo                                                                                           # 1176.

(Urgent.)

Re your #687 [a].

In the last mail I was given to understand that it was necessary for me to remain here until ASADA arrived. As it is necessary to give the Dutch authorities a report etc., please wire back immediately.  http://LOUIS-J-SHEEHAN.ORG


[a] See IV, 1039

Trans. 11-4-41

No. 1041

FROM: Batavia (Isizawa)                                                                     November 1, 1941

TO: Tokyo                                                                                           # 1173.

Re my # 1149 [a].

Strictly confidential.

The date for the sailing of the Takachiho Maru is drawing near, i.e. the 8th. Please wire instructions immediately.


[a] See IV, 1038.

Trans. 11-4-41

No. 1042

FROM: Batavia (Isizawa)                                                                     October 28, 1941

TO: Tokyo                                                                                           # 1160.

(Urgent.)

Secret.

Re my # 1149 [a].

Recently I told the Governor-General that my time for returning to Japan was approaching and asked for an interview to pay my respects. He invited me and my wife to lunch on the 30th, and I replied today, the 28th, that we would consider that our farewell.

Now if I miss the Takachiho Maru and the Nissho Maru in order to wait for ASADA to arrive at his post not only is the next sailing undecided but also it is now impossible to get

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British visas to come by airplane (the only way is through Singapore). If I remain here a good while longer, even though it is unavoidable, it will certainly seem strange to the Dutch officials; therefore, I urgently request your permission to return to Japan on the Takachiho.


[a] See IV, 1038.

Trans. 10-31-41

No. 1043

FROM: Batavia                                                                                    October 27, 1941

TO: Tokyo                                                                                           Unnumbered.

The other day, while conferring with the Chief of the  http://LOUIS-J-SHEEHAN.ORG East Asia Bureau, RO (Rofinck) on other matters, he suddenly said that compared to other consular offices, the staff of the Japanese Consulate General seems to have increased enormously of late. The government of the Netherlands East Indies can’t help but feel that this is rather strange. He added that  Louis J. Sheehan, Esquire   he understood that our staff included two naval officers and inquired as to the reason for their being here.

I therefore replied that I was under the impression that the Netherlands East Indies Government had no right to question the character or number of my staff. However, the truth of the matter is that even subsequent to the end of the trade negotiations, there has been much business to attend to and for this reason, the retaining of a large staff was unavoidable.

While the conferences were being conducted, the delegates had included military men as was well known, I said. Today, however, there remains only one officer who is a language student.

Rofinck said that after the breakdown of trade negotiations and the further limitations put on trade relations through the freezing of assets, as well as because of other developments, trade and personnel traffic should have taken a downward swing. It seemed strange that in spite of these facts the Japanese Consulate retained such a large staff. If this staff included military men camouflaged as Foreign Office men, the N .E.I. Government could not remain silent, he said.

I did not go into the matter too deeply but rather resorted to making concise replies and thus the subject was dropped. However, in view of the methods recently adopted by this Colony’s government, it is hard to foretell what steps it will try to put into effect next.

Trans. 10-29-41

(No number in text. LWJ)

FROM: Batavia (Isizawa)                                                                     October 18, 1941

TO: Tokyo                                                                                           # 1126.

(Secret outside the Department.)

The Borneo Petroleum, the South Seas Development, the South Seas Forestry, the Borneo Trading Companies, and the Pearl Button Company are greatly worried about necessary funds required in the conduct of their enterprises and maintenance funds. In my opinion these enterprises, from the point of view of their rights and interests, must be continued even though it be difficult. In compliance with necessities, therefore, we would like to have the Yokohama Specie Bank urged to release the funds for the purposes outlined above.

In this connection, IMAGAWA has already wired headquarters, but no definite answer has yet been received. Would you, therefore, please immediately take such steps as may be necessary to have the Finance Ministry urge the Yokohama Specie Bank to reach a general understanding on this point. Wire me back what you find out.

Trans. 10-22-41

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THE “MAGIC” BACKGROUND OF PEARL HARBOR

No. 1045

FROM: Batavia (Isizawa)                                                                     October 20, 1941

TO: Tokyo # 1133.

The local representatives of, the Borneo Trading Company (Borneo Bussan Shokai) have asked us to establish telegraphic connection with their head office in Kobe. It seems best to handle this in the same way as for other companies listed in your wire # 570 [a]. If this is all right please wire us a code indicating word for that company as the local branch say they have no code.


[a] See IV, 1045A. Codes are listed for the various companies and it is stated that the indicator for the Borneo Trading Company is “OX BIZ”.

Trans. 10-22-41

No. 1045A

FROM: Tokyo (Toyoda)                                                                      September 10, 1941 Louis J. Sheehan, Esquire

TO: Batavia                                                                                         #570.

Re your #934 [a].

Code Word                       Company

OTFUV                            Takeda Chobei

OVDAW                          Nanyo Kaiun

OSGOT                            Nomura Kaigaijigyobu

IFTIG                               Daido Trading Company

IGSON                             Iwai Sheton

As to messages having to do with B.O.M., those whose content requires strict secrecy should be sent in machine code or in some secure Foreign Office code. However, messages not so secret should be sent in code, applying to them the method explained in my caption telegram.


[a] See IV, 1045B

Trans. 9-12-41

No. 1045B

FROM: Batavia (Isizawa)                                                                     September 6, 1941

TO:  Tokyo                                                                                          # 934

Secret outside the Department.

Re telegraphic matter.

1. Will you please devise code words and send them by return wire for the following firms in addition to the list which you have given in your Circular # 1907 [a] and your separate telegram # 531 [b];

B.O.M.; Takeda Chobei ; Nanyo Kaiun; Nomura Teindo Shokusan;  Daido Boeki; Iwai Sheton.

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2. There are two of your messages numbered #544 [b]. One deals with a German Consul embarking on a Japanese ship and the other has to do with the loading of ships in Thailand and the Netherlands East Indies. Please be informed that we have filed the latter as your # 549 [b].


[a] Re new code procedure for commercial firms. Urgent messages.

[b] Not available.

Trans. 9-12-41

No. 1046

FROM: Tokyo (Togo)                                                                          October 24,1941

TO: Batavia                                                                                         #666.

Message sent for the Borneo Bussan Company.

From YUMAGA TO YAMAMOTO of the Borneo Bussan Company.

I have been asked to issue letters of credit, but this would take some time, because it is necessary to get permission from the Finance Ministry and to arrange for assignment of ships. After discussing the matter with the Specie Bank, I made arrangements to apply to the Finance Ministry for 45,000 gilders in the form of a temporary loan for the period ending on the last day of December. I expect that this loan will be granted in a few days. Please inform the Specie Bank in your city of this.

I am now consulting with YUKIMOTO of the South Seas Forestry Company regarding our future policy. I shall inform you definitely on the 25th of such matters as assignment of a ship to Shanghai.

Trans. 10-28-41

No. 1047

FROM: Batavia (Isizawa)                                                                     October 22, 1941

TO: Tokyo                                                                                           # 1136.

(Extremely Urgent.)

Re your #650 [a].

Since today and tomorrow are holidays, we are unable to hold negotiations with the Dutch authorities; therefore, may we trouble you to arrange for postponement of the Nissho Maru’s sailing.

Although we can load miscellaneous goods while the negotiations are still uncompleted, it is impossible to unload any cargo.  Louis J. Sheehan, Esquire


[a] Not available.

Trans. 10-25-41

No. 1048

FROM: Tokyo (Togo)                                                                          October 24, 1941

TO: Batavia                                                                                         #667.

(Urgent.)

Strictly Secret.

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THE “MAGIC” BACKGROUND OF PEARL HARBOR

Re your # 1136 [a].

I consulted with the head of the department concerned in regard to postponing the sailing date of the Nissho Maru, but it is impossible to change their schedule. Therefore, please understand that further shipments of miscellaneous goods on this trip had to be cancelled.

We planned to ship Shoyu [b], Miso [c] and Konbu [d] (The Knobu ordered only by UMENO) but since the Miso was not ready in time, we have loaded only enough for your office. However, if there are requests from OTOMI and WADA in Soerabaja and Makassar, there should be more than enough to supply them in the ship’s stores; also we want them to leave whatever is convenient for UMENO in Medan. Please let Soerabaja, Makassar, and Medan know about their shipments of foodstuffs.


[a] See IV, 1047.

[b] Soy sauce.

[c] Slightly fermented soy bean mash.

[d] Agar-Agar.

Trans. 10-28-41

No. 1049

FROM: Tokyo (Togo)                                                                          October 23, 1941

TO: Batavia                                                                                         # 661.

We are forwarding ¥15,000 for the October to December allotment of the fund to counteract Chinese activities.

Trans. 10-31-41

No. 1050

FROM: Batavia (Japanese Consul)                                                      October 23, 1941

TO: Tokyo                                                                                           # 1138.

(In 2 parts, only 2nd part available.)

3. As you pointed out in your message, it is quite true that the Netherlands merchants and banks are suffering and also that they themselves brought on this suffering. However, upon viewing our relations in general with the Netherlands East Indies, I find that my warnings since my assumption of the post here, as well as of those of the Minister Plenipotentiary, have failed to awaken our officials in Japan. With complete disregard of our warnings, cotton textile and other goods were shipped here without restriction, and because of that eighty millions of our yens have been frozen here. On the other hand, the amount of N.E.I. money held in Japan is in only an insignificant amount. In spite of the fact that there are vast sums invested in N .E.I. by our merchants and industrialists, there is only a very small amount invested in Japan by the Dutch. For these reasons, we have been placed in an exceedingly disadvantageous position.

Under these circumstances I am forced to say that if the government has no interests in protecting our rights and properties, there is no particular use in our making any efforts whatsoever. If, on the other hand, it is interested, it is my opinion that our only course is to comply with the wishes of the Dutch merchants in Japan and through such means to do everything in our power to protect our interests here.

With regard to the matter of shipping that part of the cargo left behind by the Tjisalak by Japanese vessels, on the strength of your message # 539 [a] in which you stated that the matter was being carefully studied, I went ahead and committed myself that they would be shipped

A-479

on Japanese ships as I reported in my message # 936 [b]. The Dutch, taking my word for it, agreed to ship materials necessary to Japan on the Kitano Maru and the Johore Maru.

In spite of these developments the Tjisalak upon arrival in Japanese waters, wasted much time trying to obtain permit to enter port, and because of other red tape, as a result of which, she was forced to sail away empty. Then, you say in your message, that you are not responsible for the cargo left behind and at the same time you bluntly state that you find it impossible to give your consideration to that matter of 1,200,000 yen. Under such circumstances, it is but natural that the Dutch should refuse to fulfill our wishes. Moreover, there will probably be drastic limitation or complete abolishment of all the various courtesies and conveniences that our merchants in the N.E.I. have been enjoying. (As a matter of fact the following instances, subsequent to Imagawa’s reporting that the 1,200,000 yen was refused, have already occurred: Transferring of his deposits in the Netherlands Bank to the Specie Bank was refused Nomura; depositing of proceeds from the sale of its products to the Specie Bank was refused Nagonku; INTAA refused to approve the SAIZARU transaction by the Kawanami Farms on the ground that it was in accordance with the wishes of the Economic Ministry.)

As a consequence, it has become exceedingly difficult for our nationals to continue their various business enterprises. There seems practically no alternative for Japanese wholesale and retail merchants other than complete ruin.

Does the government have any plans or policy to counteract these evils? Or, do you take the stand that because of inevitable future developments, you do not care even if the above described situation come to pass? I would appreciate being advised on this point.

Up until now, you have consistently refused to keep me posted on such fundamental points as the one referred to above. In spite of being handicapped in that manner I have done my best to argue the Dutch out of assuming the worst. Repressing the growing resentment, I have been doing everything in my power to bring about releases of frozen assets from a practical standpoint. Moreover, I have resorted to every possible means to obtain export permits for materials vitally needed by us. At the same time, I have been doing everything that can be done to prevent the complete ruin of our nationals’ business enterprises. However, if the course you outline in your message is pursued, there shall remain absolutely no means of indirect settlement. Consequently, there shall be nothing left for me to do but to give up in despair .

4. I have already reported in my various messages related to this subject, that the Netherlands have practically given up hope as far as trading with Japan is concerned, and that she is strengthening her ties with the British, U.S. and Australians. I am sure that you are well aware of this situation. For the materialization of this, it is deemed necessary here, that Vice Minister Hofstraaten assume the responsibility. Hofstraaten, however, had been of the opinion that insofar as is possible, trade relations with Japan should be adjusted. Apparently, he has given up this project in despair, for he has announced his intention of leaving for Australia on the 31st. He is traveling there at the Governor’s orders, and is planning to be gone for a considerable length of time.


[a] Not available.

[b] Not available.

[c] Kana spelling.

Trans. 10-27-41

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