611B.9417/69
Memorandum by Mr. Eugene H. Dooman of the Division of Far Eastern Affairs
| Conversation: | The Japanese Ambassador; |
| Mr. Seijiro Yoshizawa, Counselor of the Japanese Embassy; | |
| Mr. Sayre; | |
| Mr. Dooman. |
Mr. Sayre informed the Ambassador that a delegation of American cotton textile manufacturers had arranged to call at the Department next week to inquire in regard to the status of the negotiations with the Japanese Government covering imports into the Philippine Islands of Japanese cotton textiles. He assumed that these manufacturers were anticipating the approaching opening of the Philippine Legislature with a view, if no satisfactory arrangement should have been concluded between the United States and Japan, to requesting that the Legislature increase the duties on cotton textiles. Mr. Sayre felt that the American Government would be placed in a very difficult position if, after the passage of several months since the beginning of the conversations, it could not give American cotton [Page 995] textile manufacturers some definite information in regard to the negotiations. Mr. Sayre then added that it seemed necessary to be able to say that the negotiations had been concluded, either satisfactorily or otherwise.
The Japanese Ambassador said that he had not failed to explain to his Government fully and accurately the views of the American Government in regard to the matter under discussion. He had recently been informed by the Japanese Government that on August 22 Japanese exporters of cotton textiles to the Philippines had organized themselves into an association with a view to limiting exports to the Philippines in such manner as to give satisfaction to the American Government. He then asked Mr. Yoshizawa to explain the details.
Mr. Yoshizawa presented a table of figures (attached74) of exports of Japanese cotton textiles to the United States during the months January–July, 1935. He said that these figures would indicate the “sincerity” of the Japanese exporters in endeavoring to control exports to the United States, and indicated the ability of the newly formed organization similarly to restrict exports to the Philippine Islands. He said further that the association would endeavor to limit exports to one-half of the combined exports of the United States and Japan to the Philippine Islands.
Mr. Sayre remarked that an arrangement of that character would be substantial acceptance of the principles which underlay the American proposal, and that if he could inform American textile manufacturers of the action taken in Japan he felt that he had a good opportunity to control the situation in the United States in regard to a demand for tariff action in the Philippines against Japanese goods. He also thought that information to that effect would have a very good effect upon the demand for increased protection in the United States against Japanese cotton textiles.
Mr. Dooman prepared a draft statement (attached75) for possible issuance by the Department. The draft was examined by Mr. Yoshizawa and by the Japanese Ambassador, and Mr. Yoshizawa expressed the feeling that it might not be entirely satisfactory to the Japanese Government, for the reason that no reference was made to the question of possible action by the Philippine Legislature to increase the duty on cotton textiles. The Japanese Ambassador suggested that the interpolation of the phrase, after the words “market conditions in the Philippine Islands”, “and so long as existing duties on cotton textiles are not raised” would meet that difficulty.
[Page 996]After some further discussion, the Japanese Ambassador stated that he would refer the text of the draft statement to the Japanese Government with a request that the Japanese Government authorize the issuance of the statement by the Department.