611.946/290
Memorandum by Mr. Eugene H. Dooman of the Division of Far Eastern Affairs
Mr. Yoshizawa began the conversation by stating that he was “fed up”. The Embassy had received instructions this morning to inform the Department that the Japanese Government could not advance the proposal suggested by Mr. Dooman, for the reason that it would lead to an agreement which the Japanese Government considered objectionable. The Japanese Government, Mr. Yoshizawa continued, would, however, agree to limit imports for consumption of goods coming under 904–b to last year’s figures; that it did not expect that there would be any appreciable increase in imports of goods coming under 904–c, but that if the American Government anticipated that last year’s figures of such imports would be exceeded, the Japanese Government would expect the American Government to consult with it before raising the duties on this category of textiles.
Mr. Yoshizawa added that the Embassy was further directed to emphasize the importance attached by the Japanese Government to the American Government agreeing to deduct from the figures of imports for consumption the figures of re-exports of Japanese cloths on which a drawback had been granted.
Mr. Dooman said that unfortunately Mr. Sayre could not be reached at once, and that he would therefore endeavor to place before the Secretary the terms of the Japanese reply, and that he would later communicate with Mr. Yoshizawa by telephone.
Note: Mr. Dooman saw the Secretary and explained the terms of the latest Japanese proposal. In response to an inquiry from the Secretary, he expressed the opinion that the terms seemed to warrant acceptance, and he thought that the White House should be informed that a new proposal had been received from the Japanese Embassy which made advisable the postponing of issuance by the President of an Executive Order increasing duties on cotton textiles. The Secretary consulted over the telephone with the President, who gave his approval to the Department giving consideration to the latest proposal.
Mr. Dooman then telephoned Mr. Yoshizawa that no action would be taken during the week-end to increase duties on cotton cloths, and he requested that Mr. Yoshizawa call on him next Monday, May 11.