611B.9417/41

Memorandum by Mr. Leo D. Sturgeon of the Division of Far Eastern Affairs of a Conversation With the Third Secretary of the Japanese Embassy (Hayama)

Mr. Hayama of the Japanese Embassy asked for an appointment, and came to see me this morning at about 11:30. He stated that there had appeared in the press the information that the Governor of the Philippines had recently proposed certain protective tariff legislation with respect to imports of cotton textiles, and that the Embassy wished to inquire into its significance. Coming at a time when Japan and the United States were making “friendly” efforts to arrive at a quota agreement, Mr. Hayama thought the news in question was somewhat disturbing. He requested any information in regard to the matter that might be supplied.

I informed Mr. Hayama that I had only just heard the news to which he called attention, and therefore could not give him any information at the time, but that I would see what could be found out, and get in touch with him later.

It would perhaps be advisable to make some reply to this inquiry with as little delay as possible; otherwise the reported tariff action at Manila may be utilized by textile interests in Japan in such a way as to obstruct present negotiations looking toward a quota agreement between the Governments of Japan and the United States.