Mr. President. we. of course. unavoidably studied the entire question of the economic situation of Japan and her trade relationships. Our discussions indicated that the Japanese felt that the southeastern Asiatic area was the best for them as an area in which to develop their trade. but. of course. in that area there was competition. The traditional British trade there and the whole question of the sterling area were involved. So we were faced with a sharp difference of opinion. which we tried to consider as fairly as we could. There was the British view of Japan as an undesirable trade rival of the British in southeast Asia. as against our view of Japan as a full partner and as a freeworld defense bulwark with the opportunity to develop her trade in competition with other free countries in Asia.