611.9417/57
The Secretary of State to the Secretary of Commerce (Roper)
My Dear Mr. Secretary: I have your letter of October 2, 1935, enclosing a copy of a letter of September 7, 1935,77 from Mr. G. H. Dorr, President of the Cotton Textile Institute, addressed to the President, discussing the possibility of limiting importations of cotton textiles into the United States from Japan, either through agreement with the Japanese Government or through executive action authorized by the amended Agricultural Adjustment Act. I have, also, the copy which you enclosed of the letter you have received from the Honorable Henry A. Wallace, Secretary of Agriculture,78 expressing [Page 1005] the opinion that a voluntary agreement with Japan appears to be the most favorable means of solving the problem discussed in Mr. Dorr’s letter.
I appreciate the opportunity you have given me of seeing these letters and of offering my comments on this subject.
I agree heartily with the opinion expressed by Secretary Wallace which I believe is directly in line with the conclusions reached by the special Cabinet Committee.79 I strongly believe that, before we consider taking any form of unilateral action which would increase the barriers to imports of cotton goods from Japan, we should explore the possibility of securing a desirable solution of this problem through a friendly agreement with the Japanese.
You will remember that in our telephone conversation of the other day we agreed that it would be helpful for the Executive Commercial Policy Committee to give attention to the problems involved in seeking this form of action, and I understand that the chairman of this committee, Mr. Francis B. Sayre, brought the matter before the Committee at its session on October 4, and that after a brief discussion a subcommittee was appointed to make a survey of the problem and report back to the Committee at its meeting on October 11. I am informed that this subcommittee consists of Mr. A. M. Fox, Director of Research of the United States Tariff Commission, Chairman, Mr. Claudius T. Murchison, Director of the Bureau of Foreign and Domestic Commerce, and Mr. Eugene H. Dooman of the Far Eastern Section of the Department of State.
For some months, officers of this Department, advised by an interdepartmental committee, have been engaged in conversations with representatives of the Japanese Government relative to the possibility of an arrangement for voluntary control by the Japanese of importations into the Philippines of Japanese cotton textiles. These conversations have now been brought to a successful conclusion and I believe that if such is the President’s desire, it will be possible to proceed in the very near future with similar conversations regarding Japanese shipments of cotton textiles to the American market.
I wonder if you agree with me that as soon as the Executive Committee on Commercial Policy shall have reached its conclusions, the President’s Cabinet Committee on the cotton textile industry will be in a position to take up the matter with the President, requesting authorization to initiate conversations with the Japanese along the lines recommended in the committee’s report? If the President favors this [Page 1006] action, Mr. Dorr might then be informed of the determination of this Government to proceed as rapidly as possible with an exploration of the possibility of securing a satisfactory agreement with the Japanese providing for voluntary regulation by them of the volume and terms under which imports of cotton cloth and other cotton products shall enter the United States from Japan. At the same time Mr. Dorr might be informed that in connection with conversations with the Japanese on this subject we would appreciate an opportunity to discuss the problems involved with representatives of the cotton textile industry. Reference might be made to the fact that a committee of cotton textile leaders, which I understand was chosen by Mr. Dorr, visited this Department on October 3 for a conference with Mr. Sayre, and was helpful in its discussion and suggestions both as regards an agreement with the Japanese respecting the Philippine market and a possible agreement affecting the American market.
Sincerely yours,