611.9431/62
The Chargé in Japan (Neville) to the Secretary of State
[Received October 22.]
Sir: I have the honor to refer to the Department’s instruction No. 544 dated July 2, 1934,3 (File No. 611.9431/53) enclosing a copy of a memorandum of a conversation on June 20, 1934,3a between the Secretary of State and the Japanese Ambassador at Washington in regard [Page 816] to certain aspects of the commercial relations between the United States and Japan, and a copy of the memorandum3b presented at that time by the Japanese Ambassador.
It appears that Ambassador Saito expressed the hope that further increases in our trade barrier against certain Japanese commodities should be given further and serious consideration before affirmative action; among the commodities mentioned affected or threatened were tuna fish, matches, porcelain and potteries.
The Embassy has carefully reviewed the principal commodities imported into Japan from the United States in an endeavor to provide the Department, if possible, with points of discrimination against American trade which might be offset against the points raised by Ambassador Saito. In consultation, however, with Mr. Williams, Commercial Attaché of this Embassy who has prepared a memorandum on the subject, it develops that due to the fact that most of the United States exports to Japan consist of raw materials, which can be eliminated entirely from the question of trade restriction, there remain only items of less importance to be considered and it has not been possible to discover any instances where American products in Japan are meeting with the opposition that is being made in the United States to such Japanese products as tuna fish, toys, porcelain and pottery, matches et cetera.
The Department, however, might wish in this connection to consider the question of the indiscriminate use by Japanese manufacturers of American trade marks and the simulation of American packages, labels and containers. The files of the Commercial Attaché show that not only his office but many others have reported on the sale of Japanese goods bearing infringements of American trade marks or put up in packages or containers closely resembling those of American manufacture. He reports that on March 14, last, the Calcutta Office brought to the attention of the Bureau of Foreign and Domestic Commerce the Japanese infringement in the Indian market of trade marks of the Simonize Company of Chicago. On February 12, the Singapore Office reported the simulation of Parker Duofold Fountain Pens by Japanese manufacturers which were being sold in the Straits Settlements. The Carnation Company, under date of March 16, 1934, complained to the Bureau of the abundance of infringements of the Company’s milk label in Japan and China. On August 11, 1933, the Prophylactic Toothbrush Company complained of numerous Japanese infringements of their trade marks. In Japan instances can be found nearly every month in the Patent Journal, published by the Patent Bureau of the Department of Commerce and Industry, of application for trade marks which are direct infringements of American trade marks.
[Page 817]This question of trade mark infringements has created an antagonistic attitude on the part of American manufacturers to Japanese goods and constitutes a difficult problem with which to cope inasmuch as the trade mark laws in this country are such as to enable any one to apply for and register a trade mark within three months time. While American manufacturers shipping goods to Japan have been advised to have their trade marks registered, and some of them have done so, infringements nevertheless occur in view of the fact that in order to be absolutely protected a trade mark must be registered to cover seventy different classifications.
There is no doubt that Japanese manufacturers are profiting by the reputation which standard American products have established abroad, and if the present situation could be in some way improved the American exporters would be greatly benefited.
As of possible interest, there is enclosed herewith a list of the principal commodities imported into Japan from the United States during the periods January to June, 1933, and January to June, 1934, taken from the Monthly Return of the Foreign Trade of Japan, published by the Department of Finance, together with Mr. Williams’ comments as set forth in his memorandum.4
Respectfully yours,