611B.9417/75
Memorandum by Mr. Eugene H. Dooman of the Division of Far Eastern Affairs
| Conversation: | Mr. Seijiro Yoshizawa, Counselor of the Japanese Embassy; |
| Mr. Sayre; | |
| Mr. Dooman. |
Mr. Sayre stated to Mr. Yoshizawa that he understood, in the light of a conversation between Mr. Yoshizawa and Mr. Dooman on October 2, that the Japanese Government would be agreeable to entering into a gentlemen’s agreement for a period of two years beginning as of August 1, 1935, subject to clarification of three points, as follows:
1. The period of duration of the undertaking of the American Government to refrain from approaching the Philippine Government with a view to an increase in the Philippine textile tariff:
[Page 1003]Mr. Sayre said that the Administration would come to an end on December 31, 1936, and that the present Administration could not give any informal undertaking which would be binding on the next administration. He added that the present Administration confidently expects to be returned to office by the next presidential election, and in that connection he referred to the view expressed by a certain political observer that there is no doubt that the present Administration will be re-elected. Mr. Sayre stated that even if that expectation were not fulfilled it seemed exceedingly unlikely that the new administration would, for the few months remaining of the agreement after January 1, 1937, take action contrary to the terms of the arrangement.
2. The possibility of undertaking to eliminate cotton textiles as a topic of discussion at the forthcoming United States-Philippine economic conference:
Mr. Sayre stated that this matter had been given careful consideration, and that the conclusion had been reached that it would be impossible to give the undertaking requested by the Japanese Government for the reason that the Philippine Government had as much right as the American Government to bring up topics for discussion at the conference under reference. He was, moreover, of the opinion that it would be greatly to the advantage of Japan if the question of cotton textiles were discussed at a fact-finding conference of representatives of the American and Philippine Governments than if it were made the subject of political agitation. Mr. Sayre elaborated this view at considerable length, and asked whether Mr. Yoshizawa understood Mr. Sayre’s line of reasoning. Mr. Yoshizawa apparently had not fully understood Mr. Sayre, and Mr. Sayre thereupon dictated and handed to Mr. Yoshizawa a précis of his statements on this point, as follows:
“I have also discussed with Mr. Sayre the question of a possible undertaking by his Government that the question of the importation of Japanese textiles into the Philippines shall not be discussed in the coming Philippine-American trade conference. Mr. Sayre replied that he spoke of this matter in his interview with the Ambassador only out of the abundance of caution to insure against any possible misunderstanding. Mr. Sayre said that it is quite impossible at this time to determine whether the matter of textiles will be discussed at the coming conference or not, and that inasmuch as the Philippine conferees presumably would have an equal power with the American conferees the American Government found it impossible to say what might be included in the discussion. On the other hand, Mr. Sayre said that he could not but feel that if the question of textiles should be discussed in the conference it would seem to be advantageous from the viewpoint of the Japanese Government. If the two-year arrangement proves satisfactory to both Governments, it would seem to be to the manifest advantage of the Japanese Government that agreement [Page 1004] should be reached in the Philippine trade conference in 1936 to prolong such an arrangement with whatever modifications seem desirable, and that if this should be done it would preclude the chance of political pressure being brought to bear upon the Philippine Government in 1937 by textile interests or others to prevent the prolongation of the agreement and to secure the exclusion of Japanese textiles from the Philippines. In other words, although Mr. Sayre could give no assurance as to what might be discussed at the Philippine trade conference, he felt that if textiles should be included it would seem to be to the manifest advantage of Japan.”
Mr. Yoshizawa examined the précis and stated that be believed that his Government would fall in with Mr. Sayre’s views.
3. Cooperation of the Philippine Customs with efforts of the Japanese Government to restrict shipments from Japanese mills in China and transshipments from Hong Kong and other points:
Mr. Sayre stated that the Philippine Government had already expressed willingness to cooperate and it had requested, to that end, that the Treasury Department inform the Philippine Government in regard to methods for the collection and tabulation of statistical data. Mr. Sayre added that he was in complete agreement with the view of the Japanese Government that the regulation of shipments from China and of transshipment from Japan be not included within the terms of the agreement.
Mr. Yoshizawa stated that he would telegraph to his Government the substance of statements made by Mr. Sayre, and he confidently expected that he would be in position within the next few days to inform the Department that the Japanese Government would be prepared to enter into a gentlemen’s agreement for a period of two years beginning as of August 1, 1935.