Office of the Historian

611B.9417/86: Telegram

Messrs. Dorfman and Waring of the United States Tariff Commission to the Secretary of State83

Manila [undated].
[Received October 28, 1935—10:05 a.m.84]

Copies to Ryder and Fox, Tariff Commission. Text of Japanese textile agreement has raised question in local circles whether annual quota 45,000,000 square meters was intended to include Japanese textiles transshipped through Hong Kong and other ports. American textile interests believed Japanese evading obligations as approximately [Page 1013] 200,000 square meters Japanese cotton cloth has been imported from Hong Kong by Mitsui Company since Japanese agreement consummated. Japanese Consul General has not received official Tokyo text of agreement but ventured personal opinion that agreement does not extend to Philippine imports of Japanese cloth from ports outside Japan. Mitsui manager explained recent importations of Japanese cloth from Hong Kong by his firm were contracted prior signing Japanese agreement. His firm expects additional small shipments during next 3 months under same contract after which no further importations Japanese cotton will be made by his firm except directly from Japan. Mitsui has regularly imported through Hong Kong during past several years hence recent importations are not innovation.

Philippine import figures indicate no cotton cloth imports from Hong Kong during past years. Customs explains that all Philippine import data are classified on basis country of origin rather than country from which goods are imported. Philippine statistics therefore have consistently classified as imports from Japan all imports of Japanese goods whether coming directly or indirectly from Japan.

If Japan has undertaken to limit sales on basis of 45,000,000 square meters of Philippine imports as recorded by Philippine customs then quota will embrace transshipped as well as directly shipped Japanese goods. American textile interests claim sales resistance because local dealers believe Japanese agreement will not limit Philippine purchases Japanese goods in Hong Kong. Press release by State Department clarifying price [precise] understanding with Japan concerning above matter may be desirable.

  • Dorfman
  • Waring
  1. Text also transmitted to the War Department by the Governor General of the Philippines in his telegram No. 526, October 29.↩
  2. Telegram in two sections.↩