611.946/97

Mr. Eugene H. Dooman of the Division of Far Eastern Affairs to the Assistant Secretary of State ( Sayre )

Mr. Sayre: There is attached a memorandum98 which was handed to me this morning by Mr. Fujii, Chargé d’Affaires of the Japanese Embassy, who called on me in company with Mr. Ito, Second Secretary of the Japanese Embassy. The memorandum states that the Japanese exporters of porcelain have been restricting the quantity of a number of different kinds of chinaware and porcelain exported to the United States, and that they have increased by thirty percent the price on eight classes of porcelain and chinaware. The memorandum sets forth the request of the Japanese Government that the American Government enter into negotiations with the Japanese Government before any action is taken to restrict the importation of these goods into the United States.

The officers supplemented the memorandum by stating that the Japanese Government did not propose that negotiations similar to the pencil and cotton rug negotiations, be held. The Japanese Government desires the American Government to note that voluntary action is being taken by Japan to restrict exports of this commodity to the United States and otherwise to remove causes for complaint against imports from Japan. The Japanese Government desires that this Government observe the results of these restrictive measures, and that, if these results do not satisfactorily remedy the situation and restrictive measures on this side were considered necessary, negotiations between the two Governments be held before restrictive measures are applied by this Government.

Your instructions with regard to the character and substance of the reply to be made to the memorandum of the Japanese Embassy are requested.

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