611.946 Rag Rugs/108
The Department of State to the Japanese Embassy
We are pleased to say that a survey that has recently been made of the domestic cotton rug industry and of the cotton rug market in the United States indicates, although the improvements have not come up to expectations, that there have been in recent months certain favorable trends. We are, therefore, prepared to agree to substantial increases in the volume of shipments of chenille and hit-and-miss rugs.
It has been noted that there are differences in the figures of exports from Japan of cotton rugs as compiled by the American Consulate at Kobe on the basis of consular invoices and as compiled by the Japanese Association of Cotton Rug Exporters. In order to eliminate the possibility of such differences arising in the future, it is desired that the basis of calculation of shipments imported into the United States on and after June 1, 1935, be changed from “exports from Japan” to “imports for consumption into the United States” as determined by United States customs figures.
It is noted that the actual shipments of “all other” rugs have been substantially under the agreed upon maximum, as revised in May 1935 to 3,250,000 square yards. It is assumed that the Japanese exporters would be agreeable to some reduction in the maximum figure.
If the changes above suggested are acceptable to the Japanese, we are prepared to agree to a maximum of 850,000 square yards in the case of chenille rugs and of a maximum of 3,750,000 square yards in the case of hit-and-miss rag rugs for the twelve months beginning as of June 1, 1935.