Japan refuses compensation

It is clear the Japanese apology for the sinking of USS Panay was just lip service, as they have bluntly refused our request for compensation. This leaves us in a difficult situation, as the country is not ready for what will be an unpopular war, but backing down will hurt us politically and reinforce the public's anti-interventionist stance. However, stepping back from war will reassure voters that the Government means what it says about avoiding foreign entanglements.