Office of the Historian

611.946/298

Memorandum by Mr. Eugene H. Dooman of the Division of Far Eastern Affairs of a Conversation With the Counselor of the Japanese Embassy (Yoshizawa)

[Washington,] May 5, 1936.

Mr. Dooman stated that the proposal in regard to imports of cotton textiles from Japan which Mr. Yoshizawa had presented on May 4 would be finally acted upon by the Cabinet at its meeting on Thursday, May 7. He added that in all probability the Cabinet would not view with favor the Japanese proposal and that it would recommend to the President that he accept the findings of the Tariff Commission and promulgate an increase of 50 percent on cotton textiles found to be unduly competitive with American goods.

Mr. Dooman then explained the effects which the Japanese proposal, if accepted, would have:

1.
it would increase the proposed maximum allotment on bleached goods from 30,000,000 square yards to 40,000,000 square yards;
2.
it would probably stimulate imports in the unrestricted lines, notably printed dyed or colored goods; and
3.
it would probably stimulate imports of manufactured handkerchiefs.

Mr. Dooman then added that an arrangement such as that proposed by the Japanese could not be justified before the American public. The American Government could on logical and reasonable grounds defend an arrangement limiting Japanese imports to 36,000,000 square yards, but any maximum figure substantially in excess of 36,000,000 [Page 887] square yards would be open to the valid objection that it would operate still further to depress American industries that had been depressed by Japanese competition.

Mr. Yoshizawa stated that he was glad to get the statement of our position. He would report by telegraph to Tokyo today, in order that the Japanese Government might know as soon as possible that there is strong probability of its proposal being rejected. He said that, of course, very little time remained before next Thursday for the Japanese Government to attempt to bring the Japanese cotton industrialists into line if the Japanese Government considered it desirable to accept the American proposal of a limitation of imports of 36,000,000 square yards. He expressed the hope, therefore, that, in the event of the Cabinet recommending to the President that the duties be raised, such action be held in abeyance “for a day or two”. Mr. Dooman said that he would be glad to bring this request to the attention of Mr. Sayre.