The Cabinet Committee on Cotton Textiles to President Roosevelt
My Dear Mr. President: You will recall that in the report of the Cabinet Committee on Cotton Textiles submitted to you on August 20, [Page 1019] 1935, we referred to the increasing importation into this country of certain types of textiles from Japan and expressed the opinion that since Section 3 (e) of the National Industrial Recovery Act92 was no longer operative, the most desirable and expedient course of action now available for securing an effective adjustment of the situation created by such importations would be through informal conference with the Japanese Government with respect to those textile products which have been the subject of complaint to this Government. It was felt that as the result of such discussions a voluntary agreement might be reached as to the volume and terms under which imports of cotton cloth and other cotton products enter this country from Japan. This method had been employed with respect to other Japanese products and at that time conversations were in progress with representatives of the Japanese Government regarding shipments of Japanese cotton cloth into the Philippine Islands.
On October 11, after lengthy negotiations with the Japanese Government, a final agreement was reached providing for the voluntary limitation, by Japanese textile exporters, of importations into the Philippine Islands of Japanese cotton piece goods. This arrangement, it is anticipated, will materially improve the position for American cotton textiles in the Philippine Islands without adversely affecting the interests of the Filipino people, and at the same time it should stabilize the Philippine market for cotton goods. The Governments of both the United States and Japan found themselves in entire agreement upon this method of dealing with a situation which might otherwise lead to increasing conflict between their competing commercial interests.
Within the last few weeks the Cotton Textile Institute and other domestic textile interests have urged this Government to take early action to regulate or restrict textile imports from Japan, either in accordance with the Cabinet Committee’s recommendation or in pursuance of the authority which they maintain is vested in you by Section 22 (a) of the Agricultural Adjustment Act,93 as amended.
In view of the successful completion of negotiations with the Japanese concerning the Philippine market for cotton textiles and the renewed drive on the part of the domestic industry for some definite action with respect to importations of textiles into this country, it is the opinion of the members of the Cabinet Committee that the present affords a propitious time for initiating conferences with the Japanese Government with respect to shipments of certain textiles into the United States, if it is your desire to seek an adjustment along these lines before giving serious consideration to the possibility or desirability of employing more direct means of controlling such imports. [Page 1020] In the event that an agreement with the Japanese along these lines is to be sought, it would appear to be advisable to undertake the discussions as soon as possible, inasmuch as negotiations of this character usually take considerable time.
In order to save time the Executive Committee on Commercial Policy, which has helped to formulate the recent agreement with Japan with respect to Philippine importations, have directed their attention recently to the principal textiles imported into the United States from Japan against which complaint has been made, namely, cotton cloth, cotton rugs, cotton velveteens, woolen gloves and mittens, and cotton fish netting. It has appointed a sub-committee to gather all pertinent facts relating to these commodities and to study the direction which negotiations should take in the event that it is your desire to proceed with negotiations. As a result of this study the Executive Committee on Commercial Policy will therefore shortly be in a position to advise with respect to these matters.
It is our considered opinion that the fear of sharply increasing importations at very low prices of Japanese textile products, rather than the actual amount, has been a disturbing element in the domestic textile situation. Prompt action by this Government, therefore, in seeking a solution of this aspect of the general textile problem may prove of considerable assistance to the industry in continuing the present improvement trend and in safeguarding wages and labor conditions first established in the industry under Code No. 1 of the National Industrial Recovery Act.
Faithfully yours,
Secretary of State
Secretary of Agriculture
Secretary of Labor