Office of the Historian

611B.9417/73

Memorandum by Mr. Eugene H. Dooman of the Division of Far Eastern Affairs of a Conversation With the Counselor of the Japanese Embassy (Yoshizawa)

[Washington,] October 2, 1935.

Mr. Yoshizawa stated that the Embassy had received instructions from the Foreign Office at Tokyo to present to the Department certain views in regard to the proposed Philippine textile arrangement, as follows:

1.
The Japanese Government is much distressed to learn that this Administration is unable to give any undertaking to extend beyond January 1, 1937, to refrain from encouraging the Philippine Government to raise the duty on textiles. The Japanese Government feels that an undertaking which would not extend as long as the arrangement would give Japanese textile interests cause for apprehension. It is hoped, therefore, that the American Government would give an undertaking to be effective during the life of the agreement.
2.
With reference to the statement made by Mr. Sayre to the Japanese Ambassador on September 30 that it would be necessary for the American Government to be free to discuss with the Philippine Government the question of cotton textiles at the conference to be held next year, the Japanese Government had obtained the agreement of the Japanese cotton interests to the proposed arrangement by stressing the point that an arrangement, if established, would operate to exclude cotton textiles as a subject for negotiation between the United States and the Philippines. The Japanese Government wished to know whether it would be feasible to leave the question of cotton textiles out of the agenda for the United States–Philippine conference.
3.
The Japanese Government will do its best to prevent shipments to the Philippine Islands of piece goods produced by the Japanese [Page 1002] mills in China and to prevent transshipment of Japanese piece goods at Hong Kong and other points to the Philippine Islands. The Japanese Government will, however, expect to receive the cooperation of the Philippine Customs. The Japanese Government would desire, however, that this matter be not set forth in the arrangement.
4.
Subject to the above three points, the Japanese Government would be prepared to enter into an arrangement for a period of two years to be effective as of August 1, 1935.

Mr. Dooman stated that he was somewhat concerned by the raising of the second point, for the reason that it had always been the policy of this Government to keep itself free to discuss with the Philippine Islands the establishment of some commercial arrangement to be effective at some time after the conclusion of the proposed gentlemen’s agreement. Mr. Yoshizawa stated in that connection that he was authorized to say to Mr. Dooman that the Japanese Government looked forward to the gentlemen’s agreement being extended if it should prove to yield beneficial results—that it envisaged the working out of some long-term arrangement. The possibility of a long-term arrangement would, in Mr. Yoshizawa’s opinion, be seriously impaired if the question of increasing duties on Japanese cotton textiles were raised at the conference next year.

Mr. Dooman stated that he could categorically assure Mr. Yoshizawa that the American Government does not at this time intend to ask the Philippine Government at the conference to raise the duties, but that further than that he could not go without presenting the question to Mr. Sayre. He promised to bring the matter to Mr. Sayre’s attention as soon as possible.