611.946 Rag Rugs/147
Memorandum by Mr. Roy Veatch of the Office of the Economic Adviser
| Conversation: | Mr. Tsuneo Hayama, Third Secretary of the Japanese Embassy, |
| Mr. Otoshiro Kuroda, Attaché of the Japanese Embassy, | |
| Mr. Veatch. |
Mr. Hayama and Mr. Kuroda presented a typed statement requesting the extension for another year (that is, from June 1, 1936 to May 31, 1937) of the existing agreement with regard to the export of cotton rugs from Japan to the United States. They were instructed to say that the Japanese Government desires a continuation of the agreement in its present form although the Japanese exporters had been urging the Government to seek an increase in the amounts of rugs of each class which might be shipped during the coming year. Exporters have received orders which they have not been able to fill this year inside of the limits of the agreement to the following amounts:
| Chenille rugs | 350,00 square yards |
| Hit-and-miss rugs | 150,000 square yards |
| “All other” cotton rugs | 200,000 square yards |
To be sure, the Japanese Government would like to secure as liberal figures for the Japanese exporters as possible and their statement, therefore, was phrased to say that they desired limits “at least” as liberal as those agreed upon for the present year. Mr. Hayama said that he did not want to “negotiate” or “bargain”, however, so that he stated frankly that they would be glad to agree to the present figures for next year.
Mr. Veatch said that he would place this request before the Department immediately. Undoubtedly inquiry would have to be made as to the present state of the market for rag rugs and the prospects in the future. In this regard he said that some complaints had been made by manufacturers of rag rugs and rag carpets against what was claimed to be increasing competition of Japanese rag carpets in this [Page 878] market. Mr. Veatch stressed the fact that he did not know to what extent this complaint was justified and only mentioned it in passing. Since it appeared that cotton rag carpets were manufactured at least to some extent by the same concerns that manufacture cotton rugs, the market for rag carpets might have some effect upon the rag rug situation. In any event, the proposal of the Japanese Government would be looked into immediately and Mr. Hayama would be informed just as soon as this Government was able to say what arrangement could be made.
(A copy of the statement handed to Mr. Veatch by Mr. Hayama is attached.48)
- Not printed.↩