Foreign Relations of the United States Diplomatic Papers, 1936, The Far East, Volume IV

611.943 Gloves/2

The Department of State to the Japanese Embassy¹⁰

undated

United States Imports of Wool-Knit Gloves From Japan

1. An investigation of wool-knit gloves and mittens under Section 336 of the Tariff Act of 1930 was instituted on August 20, 1935 by the United States Tariff Commission in accordance with Senate Resolution 178 of the 74th Congress. In this investigation, as in others under Section 336 of the Tariff Act of 1930, the Tariff Commission is directed to ascertain the differences in the costs of production of the domestic article and the imported foreign article and to specify, in a report to the President, what changes in duty, if any, would be required to equalize such differences in costs of production.

2. The report of the Tariff Commission upon wool-knit gloves is nearing completion. In accordance with the request of the Japanese Ambassador, it is possible to give this advance indication of the probable findings or conclusions of the Commission with respect to this case so that the Japanese Government may have an opportunity, if it so desires, to consider remedial action before it will become incumbent upon the President under the provisions of the law to proclaim such changes in the rates of duty on imports of this article as will be specified in the report of the Commission.

3. Although the Commission’s report is not yet complete, it seems likely that the facts brought to light by its investigation will necessitate a shift from the foreign valuation to the American valuation as a basis for levying duties upon imports of wool-knit gloves and mittens. Specifically, that would mean a recommendation that the duty on knit gloves and mittens, finished or unfinished, wholly or in chief value of wool, valued at not more than $1.75 per dozen pairs, provided for in paragraph 1114(b) of the Tariff Act of 1930 at the rate of 40¢ per pound and 35 percent ad valorem on foreign value, be changed to 40¢ per pound and 35 percent ad valorem on the American selling price.

4. It appears, therefore, that under the provisions of the law, the President will be faced with the necessity of issuing a proclamation providing for this change in duty on imports of wool-knit gloves and mittens unless definite steps have been taken amply to protect the American industry before the Tariff Commission report has been submitted to him.

5. It is impossible to say exactly how long it will be before the Tariff Commission will make its report to the President, but the report is practically complete and it should be ready for submission to the President before the end of January. Furthermore, the condition of uncertainty in the market is such that some definite action with respect to imports of wool-knit gloves will be necessary before the first of February if action by the President, under the law and in conformity with the findings of the Tariff Commission’s investigation, is to be avoided.

10. Handed to the Japanese Ambassador by Assistant Secretary of State Sayre, January 23.