Foreign Relations of the United States Diplomatic Papers, 1935, The Far East, Volume III

611B.9417/83

Memorandum Initialed by the Assistant Secretary of State (Sayre) and the Japanese Ambassador (Saito)

[Washington,] October 11, 1935.

Conversation:	The Japanese Ambassador;
	Mr. Seijiro Yoshizawa, Counselor of the Japanese Embassy;
	Mr. Sayre;
	Mr. Veatch;
	Mr. Dooman.

The Japanese Ambassador, accompanied by Mr. Yoshizawa, Counselor of the Embassy, called, on October 11, 1935, on Mr. Sayre, Assistant Secretary of State.

The Japanese Ambassador stated that he was glad to inform the American Government that the recently formed Association of Japanese Exporters of Cotton Piece Goods to the Philippine Islands will, for a period of two years beginning as of August 1, 1935, and provided there is no increase in the Philippine tariff on cotton piece goods, voluntarily limit imports of Japanese cotton piece goods into the Philippine Islands to a figure not to exceed 45,000,000 square meters annually; with the proviso that 10 percent of such annual figure should be flexible, that is to say, if the importations during the first year exceed or are less than the amount of 45,000,000 square meters such excess or balance (in no case to exceed 4,500,000 square meters) shall be subtracted from or added to the allotment for the second year, and further that the semiannual volume of imports will not exceed 26,000,000 square meters in any one semester. The Ambassador further stated that the statistics of imports compiled by the Philippine Customs will be used as the basis of determining the volume of imports of Japanese cotton piece goods.

The Assistant Secretary of State stated that he was gratified to receive the information from the Ambassador that the Association of Japanese Exporters of Cotton Piece Goods to the Philippine Islands was prepared to regulate exports of Japanese cotton piece goods to the Philippine Islands. Mr. Sayre stated on behalf of the Secretary of State that so long as annual imports into the Philippine Islands of Japanese cotton piece goods do not exceed 45,000,000 square meters, the American Government will take no action directed toward securing an increase in the Philippine tariff rates on cotton piece goods to take effect prior to August 1, 1937, provided, however, that this statement does not entail a commitment of succeeding administrations of the American Government. The Japanese Ambassador then stated that, in the event that the next administration of the American Government should deem it necessary to approach the Philippine Government with a view to an increase of Philippine tariff rates on cotton piece goods, Japanese exporters would expect to determine, in the light of the then existing circumstances, whether or not they would continue to regulate their shipments to the Philippine Islands.