Foreign Relations of the United States, 1961–1963, Volume XXII, Northeast Asia

343. Telegram From the Embassy in Japan to the Department of State⁰

Tokyo, September 9, 1961, 3 p.m.

823. Reference: Embtel 820.¹ After day of stormy negotiations, marked by frequent outbursts by Seki and sharp attacks US position by other members Japanese delegation, basic understanding on textile bilateral reached in late afternoon session, with Ushiba supplanting Seki as chief Japanese negotiator. While USDel caucused, Ushiba obtained authority from Kosaka, Sato concurring, to proceed along lines of understanding. Detailed discussions which followed were completed at 3:45 a.m. September 9. Agreement, full text of which given in reference telegram, to be initialed by Foreign Office and Embassy September 11, in order permit Foreign Office and MITI Ministers read and approve.

Although over-all ceiling raised by 7.8 per cent and concessions made to Japan on total number categories, GOJ committed adhere Geneva multilateral, categories were added for sensitive items not previously specified, “item veto” provision included which not only permits US call for consultation whenever export concentration occurs (including case if woven trousers quota becomes concentrated in either men’s or women’s categories but also obliges GOJ undertake holding action at 110 percent level preceding 12 months, and GOJ agreed act to prevent circumvention of arrangement by substitution of directly competitive textiles. Flexibility provision wound up with proviso for 5 percent across the board but applicable only to basket categories, this after hardest kind of bargaining.

Discussions were intensive and often on Japanese side, bitter, with MITI official Matsumura² complaining US argued at some points about volume of imports, at others on “political realities”, giving GOJ no consistent reasons for requests made on it. Seki accused USG of “hypocrisy” in claims to adherence liberal trade policy and at one point said emotionally he would resign from diplomatic service if overruled on his recommendation against agreement. Ambassador saw Foreign Minister, MITI Minister,³ and Prime Minister to urge agreement on them and Embassy obtained intervention powerful Japanese business figures in favor understanding USG position. USDel consulted industry and labor advisers daily and in depth on all developments and in final stages negotiations advisers were fully briefed on all concessions USDel proposed make.

Separate codicils to basic agreement⁴ cover: (1) provision for consultation on concentration in either mens or womens trousers; (2) clauses making GOJ adherence contingent on restraints on Hong Kong and absence further US restraints (except equalization fee), which specified “will not make agreement inoperative” (3) Geneva adherence; (4) typewriter ribbon cloth (terms not yet settled)

Reischauer

0. Source: Department of State, Central Files, 611.9441/9-961. Official Use Only. Repeated to Hong Kong.
1. Not printed. (Ibid.)
2. Keichi Matsumura, Director of the Textile Bureau of the Japanese Ministry of International Trade and Industry.
3. Eisaku Sato.
4. For text of the Arrangement Concerning the Export of Cotton Textiles from Japan to the United States, effected by an exchange of notes dated October 16, 1961, entered into force on January 1, 1962, see TIAS 4908. Texts of the ancillary codicils, which were embodied in two side agreements, are enclosures to despatch 338 from Tokyo, October 17. (Department of State, Central Files, 611.9441/10-1761) The agreement regarding item 2 was originally classified.