The Government is giving a careful consider:
ion to our relations with ihe Soviet Union. Incidents continued to occur along the Manchoukuo-Soviet frontier. The most serious case was the recent illicit invasion and occupation of Manchoukuo islands in the Amur which led to an armed clash between the Japanese and Manchoukuo forces and the Soviet in-traders.
The situation threatened for a time to develop into one of extrem gravity. The affair ended, however. as you know, in a peaceful settlement, the Soviet Government agreeing to restore the status quo ante in that region.
The Japanese Government is deeply concerned over the state of things on the Manchoukuo-Soviet frontier which gives rise to frequent friction. What is needed. first of all, is to take practical steps to prevent these border disputes, For that purpose we should lose time in setting up no those two commissions for the de-mar cation of the border line and for the settlement of disputes which for some years past have been under consideration, and also to revise other means of removing tension all along the frontier I cannot but urge most strongly the Soviet Government to ce-operate freely and unreservedly with us in this task for the sake of peace in East Asia Again, it is a matter of no: small concern for the Government whether or not our nationals- engaged in fishery in northern waters and those having oil and coal concessions in North Saghalien are to be accorded full guarantees for legitimate opera tion of their enterprises.
It is our policy never to tolerate the creation of any such circumstances as will in substance destroy those enterprises sanctioned by treaty.In short there remain between Japan and the Soviet Union a number of issues still pending for solution, for which the Government will do the best it can.
Text read from the printed page and cleaned; old type leaves the occasional error.
