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  4. Document 824

611.946 Rag Rugs/124: Telegram

The Consul General at Shanghai (Davis) to the Secretary of State

Shanghai, February 3, 1936—4 p.m.
[Received February 3—1:25 p.m.]

72. Following from Kobe:18

“January 30, 11 a.m. Referring to your December 24, 2 p.m., via Shanghai,19 I have to report that at a conference on January 29th between myself, the chief executive of the Rug Export Association and Messieurs Waring and Dorfman20 it was agreed:

(1)
The association will notify the Consulate of each permit it issues for a shipment which will not require a consular invoice, that is less than $100 value.
(2)
The association will notify the Consulate whenever any permit is canceled or the amount altered.
(3)
At the end of each month the association will bring to the Consulate customhouse figures identifying the shipments which have actually been exported rather than merely under permit or invoice awaiting shipment which condition has been a source of disagreement in consular and association figures for any specific month in the past. This will also enable us to check shipments which never leave Japan.
(4)
The Consulate will cooperate with the association in endeavoring to have non-members of the association report their shipments, if any, to the association.
(5)
The association will send its representative to the Consulate at the end each month to reconcile its figures with those of the Consulate.

The association states that it is not now permitting shipments from any port except Kobe and that it believes no shipment can be exported without the association’s knowledge as association representatives are checking actual shipment at the pier with the exception that possibly [Page 828] goods falsely declared on consular invoice the Japanese customs export declaration might escape notice; for example, a shipment invoiced as cotton rags instead of cotton rugs. To contravene such practices the association requests the cooperation of the Department in promptly notifying to the Consulate any cases where the American customs report that a shipment misleadingly invoiced has been entered.

Figures for January and subsequently will be prepared in accordance with the foregoing and reconcilement of association and consular figures for June–December 1935 period now under way will be telegraphed the Department early in February.

Consulate General informed. Krentz.”

Davis
  1. From Kenneth G. Krentz, Consul at Kobe.↩
  2. Foreign Relations, 1935, vol. iii, p. 1040.↩
  3. Frank A. Waring and Ben D. Dorfman, of the U. S. Tariff Commission staff.↩