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

611.943 Gloves/16

Memorandum by Mr. Roy Veatch of the Office of the Economic Adviser

[ Washington ,] February 18, 1936.

Conversation:	Mr. Tsuneo Hayama, Third Secretary of the Japanese Embassy,
	Mr. Feis,
	Mr. Veatch.

Mr. Hayama came to the Department shortly before one o’clock to inform us immediately of a cable which had come from Tokyo just a half hour earlier. This cable suggested certain changes in the American proposal and he had come to the Department quickly so that a reply could be sent to Tokyo later in the day, since Tokyo was under the necessity of giving a final answer to this Government by tomorrow, February 19.

The cable from Tokyo instructed the Japanese Embassy to offer what in effect was a counter-proposal. This proposal covered the following points:

(1) Japanese exporters to restrict shipments from Japan from March 1, 1936 to January 1, 1937, to 200,000 dozen pairs. This shift from arrivals in the United States to shipments from Japan was requested in order to allow the Japanese to set up their controls effectively and also to provide for accuracy and speed in compiling the statistics so that the exporters might exercise control more effectively.

(2) All shipments made from Japan prior to March 1, 1936 should fall outside of the limitation—this provision to serve as a substitute for the American proposal that only arrivals in the United States between January 1 and March 1, 1936, up to a maximum of 150,000 dozen pairs should be exempted from limitation.

(3) Agreement should be reached now only upon the first year with details of a second and third year to be settled at a later time when the facts regarding the probable effect of limitation upon the American market and the welfare of the American industry, and the facts regarding the total trade between the United States and Japan could be taken into consideration more adequately.

Mr. Hayama agreed to send a written statement of the Japanese counter-proposals³² to the Department later in the afternoon.

Mr. Feis assured Mr. Hayama that he would bring the Japanese proposals to the attention of the Under Secretary of State as quickly as possible and that full consideration would be given the matter this afternoon—he saw no reason why a definite reply could not be given to the Japanese Embassy before evening.

As he left, Mr. Hayama said that he was somewhat embarrassed by the necessity of presenting these proposals but, of course, he had been instructed to do so. He felt personally that the people in Tokyo were a little stubborn and that they wanted to get everything they possibly could. He took it for granted, however, that the American reply to these counter-proposals could be given instantly and that it would have to be negative. He was assured, however, that the matter would be considered sympathetically here and that the considerations presented in the Japanese cable would be weighed carefully.

32. Not printed.