611B.9417/89
The Assistant Secretary of State (Sayre) to the Appointed High Commissioner in the Philippines (Murphy)89
[Washington,] October 30, 1935.
For Messrs. Dorfman and Waring. Your 526, October 29.90
- 1.
- We are very glad to receive this informative and very helpful telegram.
- 2.
- It is agreed with the Japanese that transshipments at Hong Kong of cotton piece goods originating in Japan would be included within the annual quota. The Japanese also undertook to regulate as far as practicable shipments to Philippine Islands of cotton piece goods originating in Japanese mills in China. In concluding the arrangement, [Page 1017] however, it was agreed that we would not give publicity to the understanding reached in regard to transshipped goods and goods originating in Japanese mills in China.
- 3.
- Your suggestion that the Department issue a press release clarifying the understanding reached with the Japanese in regard to the two points above mentioned was taken up today (October 29) with the Counselor of the Japanese Embassy. We informed him in general of the contents of your telegram and suggested that it seemed important to clear up the misapprehensions which seemed to exist in regard to transshipped goods. The Counselor stated that the Embassy had received a telegram from the Japanese Consul General at Manila containing information substantially along the lines of your telegram under reference. The Counselor, without prompting on our part, pointed out in effect that as the Philippine statistics classified as imports from Japan all imports of Japanese goods whether coming directly or indirectly from Japan, it would necessarily follow that transshipped goods would be included in the quota. He thought that there might be issued a statement making public such fact. We suggested that it would seem preferable if that fact were brought to the attention of the public by the Japanese rather than by ourselves, and he agreed.
- 4.
- The Counselor undertook to communicate with his Government in regard to this matter. It was apparently his thought that some statement along the lines above indicated might be made by the Japanese Consul General at Manila. The Counselor stated that he felt certain that, if the Japanese Government did not desire the issuance of a Japanese statement, it would have no objection to the issuance of an American statement.