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

611B.9417/140

The Department of State to the Japanese Embassy³⁸

[Washington,] March 3, 1936.

The Japanese Ambassador, accompanied by Mr. Yoshizawa, Counselor of the Embassy, called on Mr. Sayre, Assistant Secretary of State on March 3, 1936.

The Japanese Ambassador stated that he was authorized by his Government to inform the Government of the United States that the Association of Japanese Exporters of Cotton Piece Goods to the Philippine Islands has agreed to the following voluntary adjustments of certain details of the arrangement^* instituted by the Association to limit imports of Japanese cotton piece goods into the Philippine Islands for the two-year period August 1, 1935 to July 31, 1937:

1. The total amount of Japanese cotton piece goods to be imported into the Philippines during the period February 1, 1936, to August 1, 1936, will not exceed fifteen million square meters.

2. Statistics of arrivals in the Philippines of Japanese cotton piece goods compiled by the Philippine customs service will be employed as the measure of Japanese cotton piece goods imported into the Philippines from February 1, 1936, to the termination of the agreement.

3. The total amount of Japanese cotton piece goods to be imported into the Philippines between the present time and August 1, 1936, will be distributed evenly so far as possible over the intervening period.

4. The total amount of Japanese cotton piece goods to be imported into the Philippines for the twelve months following August 1, 1936. as measured by Philippine customs statistics of physical arrivals, will not exceed forty-five million square meters.

5. It will be the intention of the Japanese exporters to distribute evenly insofar as possible over the twelve months period the total amount of Japanese cotton piece goods to be imported into the Philippines during the second year of the agreement, August 1, 1936, to July 31, 1937. Furthermore, some definite limitation of the amounts to be imported monthly or quarterly during this period will be established as soon as possible. In any event imports will not exceed twenty-six million square meters in either semester of this year.

Mr. Sayre stated on behalf of the Secretary of State that the Government of the United States was pleased to accept these adjustments of the original agreement and that in doing so it would adhere strictly to its stated intention to take no initiative during the life of the agreement toward securing an increase in the Philippine tariff rates on cotton piece goods. Mr. Sayre made the further statement that the agreement implies in no way any limitation upon the full liberty of action of the Philippine Government or upon the freedom of the Government of the United States to consider without prejudice any action taken by the Philippine Government, and the Japanese Ambassador assured Mr. Sayre that this statement was clearly understood.

Mr. Sayre agreed fully to the understanding of the Japanese Government that the agreement referred only to cotton piece goods but he voiced regret that Japanese exporters had not agreed to similar limitations upon Philippine imports of Japanese rayon piece goods, and he expressed the opinion that the policy pursued by Japanese textile exporters with respect to shipments of rayon goods to the Philippines will be a very important factor in determining whether or not the cotton textile agreement is to work satisfactorily. With reference to this point, the Japanese Ambassador informed Mr. Sayre that the opinions and concern expressed by the American Government had been placed clearly before the Japanese exporters of rayon goods

38. Handed by Assistant Secretary of State Sayre to the Japanese Ambassador, March 3, for reference to the Japanese Government.
39. The Department was informed of this arrangement, through Mr. Sayre, by the Japanese Ambassador on October 11, 1935, and the details of the arrangement were set forth in a memorandum of conversation of that date initialled by the Japanese Ambassador and Mr. Sayre. [Footnote in the original; for memorandum, see Foreign Relations, 1935, vol. iii, p. 1007.]