611.9417/97
Memorandum by Mr. Roy Veatch of the Office of the Economic Adviser
| Conversation: | Mr. Seijiro Yoshizawa, Counselor of the Japanese Embassy; |
| Mr. Sayre; | |
| Mr. Turner;5 | |
| Mr. Veatch. |
As a result of Mr. Yoshizawa’s suggestion, in conversation over the telephone with Mr. Veatch on December 12, it was arranged for him to call on Mr. Sayre.
Mr. Sayre said that a representative of the cotton textile industry had been in to see him the day before and, in conformity with the request of the Japanese Ambassador that the Embassy be informed [Page 1034] whenever more drastic restriction moves were under consideration, Mr. Sayre was able to inform Mr. Yoshizawa in confidence of the action which was proposed by the textile interests. These interests expect to request the President to impose quotas, under Section 22 of the Agricultural Adjustment Act, upon the imports from Japan of certain cotton textiles (Mr. Sayre read Section 22 of the AAA). Various textile groups also were planning a drive for legislative action against textile imports from Japan as soon as Congress opens.
Mr. Yoshizawa said that the Embassy was in an embarrassing position because it was unable to give any explanation for the delay of the Japanese Government in replying to the suggestion of this Government that conversations be undertaken with respect to control of imports into the United States of certain Japanese textiles. The Ambassador had cabled Tokyo immediately after his first conversation with Mr. Sayre on the subject, and Mr. Yoshizawa had dispatched another cable immediately after his conversation with Mr. Sayre a week or so ago.
Mr. Yoshizawa was anxious to know what picture the textile people painted of the present situation. Had they brought in any actual figures?
In response Mr. Yoshizawa was told that of course the textile people and this Government have the figures of imports. It has been noted that arrivals from Japan fell off strikingly during the summer months but there still exists a large accumulation of Japanese goods in bonded warehouses which the textile interests consider as pressing upon the market. Furthermore, there still exists the fear that Japanese goods may suddenly penetrate the market, upsetting the price structure and perhaps destroying the domestic market for certain lines of textiles. He was reminded of the history of the agitation against imports of Japanese textiles, the fact that this agitation had been the most violent of any agitation against Japanese competition, and that a special Cabinet Committee had been formed to deal with the matter. The special Cabinet Committee had recommended more than six months ago that some form of control of textile imports from Japan was desirable but had urged that voluntary agreement be sought with the Japanese before any other action should be taken. Six months had now gone by without any progress in securing such a voluntary agreement and it was going to be impossible to prevent action of some other character unless something were done along this line very quickly. The deadline had been reached, if not passed.
Mr. Yoshizawa said that he understood the situation thoroughly and that he would explain to the Ambassador our concern over the delay and the plans of the textile interests for requesting more drastic [Page 1035] action. He said that a cable would be dispatched to Tokyo later in the afternoon recommending that the Japanese Government reach a decision on the matter one way or the other.
Mr. Sayre then spoke of the arrival figures which had been handed out in Manila and of the proposed press release, which Mr. Yoshizawa had seen in Mr. Veatch’s office December 7, Mr. Sayre explained that instead of making a release here, we had suggested that a release be made in Manila similar to the one which Mr. Yoshizawa had seen in the Department. As soon as we had word from Manila that the release was to be made, we would be glad to inform Mr. Yoshizawa and to supply him with the text of the release if the text were transmitted to us. Since the Philippine Government is now more than ever divorced from control by this Government, we cannot, of course, dictate what that Government is to do.
Mr. Sayre then informed Mr. Yoshizawa that the Interdepartmental Committee on the Philippines was to meet later in the afternoon to discuss textile difficulties arising in connection with the cotton textile agreement with Japan. It was appreciated that strict adherence to the letter of the agreement would work a hardship on the Japanese exporters. It was Mr. Sayre’s intention, therefore, if the Interdepartmental Committee so decides, to suggest that Mr. Yoshizawa and the Ambassador should come in and talk the matter over, perhaps tomorrow morning.
Mr. Yoshizawa commented that the agreement quite clearly stated that the Philippine customs statistics were to be the measure of imports from Japan under the agreement. He was sure, however, that the United States Government would recognize the fact that the Japanese can control exports only and that statistics of arrivals would therefore be a better measure to follow.
Mr. Sayre stated again that it was his feeling that representatives of both Governments should explore the problems which had arisen in connection with the agreement. He thought there was a distinct possibility that it would be desirable to shift to arrival statistics. At the same time there were many problems to be considered and dealt with, including the reaction of the textile interests in this country.
Mr. Yoshizawa said that he presumed if this problem were placed before the Japanese Government, that Government would request the United States Government to exclude transshipments from Hong Kong from the quotas covered by the agreement, since Japanese exporters were unable to control such shipments, and that they would also ask the American Government to do something about the unusual circumstances shown by the liquidation figures of the Philippines for August and September.
[Page 1036]Mr. Yoshizawa was quite sure that it would be possible for the Ambassador and him to come to the Department on Saturday morning if Mr. Sayre wished to call them.
In leaving, Mr. Yoshizawa repeated his assurance that the Embassy would cable Tokyo this same afternoon expressing the concern of this Government over the delay of Tokyo in replying to this Government’s query.
- William T. Turner of the Division of Far Eastern Affairs.↩