611.946/317
Memorandum by Mr. Eugene H. Dooman of the Division of Far Eastern Affairs
| Conversation: | The Japanese Ambassador; |
| Mr. Seijiro Yoshizawa, Counselor, Japanese Embassy; | |
| Mr. Sayre; | |
| Mr. Dooman. |
The Japanese Ambassador stated that he assumed that Mr. Sayre already knew, as a result of informal conversations which Mr. Yoshizawa had yesterday with officers of the Department, what he had been instructed to say with regard to the possibility of there being concluded a gentlemen’s agreement on slide fasteners. The Ambassador went on to say that his instructions were to inform Mr. Sayre that, if action is to be taken by the American Government on the basis of section a of paragraph 336 of the Tariff Act, the Japanese Government would not deem it practical to proceed with negotiations such as those proposed, but that if action was to be taken on the basis of section b of the same paragraph, and “American valuation” declared on imports of slide fasteners, the Japanese Government would be prepared to look into the question of voluntarily regulating exports of slide fasteners from Japan.
Mr. Sayre replied that the possibilities of reaching a satisfactory agreement had been very carefully looked into by the Department, and that we had reached the conclusion that it would be extremely difficult, if not impossible, to find a basis which would be satisfactory to both sides: that any figures which would be acceptable to the Japanese would arouse the domestic industry, whereas any figure satisfactory to the domestic industry would not be acceptable to the Japanese. He hoped that, if the President should take action to increase duties, the Japanese Government would make it clear to the [Page 910] Japanese public that the American Government had not taken such action arbitrarily but that it had previously consulted with the Japanese Government.
The Japanese Ambassador said that he would, of course, not fail to impress upon his Government the necessity of letting the public in Japan know of the facts.
He wondered whether Mr. Say re could not assure the Japanese Ambassador that the President would not declare for “American valuation”. Mr. Sayre stated that the Department has legally no part in the procedure laid down for the taking of action under paragraph 336 and that the question of the taking of final action can be decided only by the President. After some discussion, Mr. Sayre said that he would endeavor to let the Japanese Ambassador know in the event that the President should decide to return to the Tariff Commission its report for further consideration.
Mr. Sayre stated that during the course of the conversation which he had recently with Mr. Kurusu, Japanese Ambassador to Belgium, Mr. Kurusu had pointed out that once the reports of the Tariff Commission are in the hands of the President, the circumstances are unfavorable for the conclusion of arrangements for voluntary regulation of exports by the Japanese. Mr. Kurusu had suggested that it would be advantageous to have set up a body which would follow trends in shipments from Japan and their effects upon American industries and markets, the body to advise Japanese shippers to regulate their shipments in such manner as to avoid, so far as possible, injuring American interests. Mr. Sayre added that the suggestion with regard to the setting up of a body had been discussed among various officers of the Department, but that it had occurred to him that it might be helpful in the meantime to the Japanese if he were to supply the Japanese Ambassador with a list of Japanese commodities which are now causing trouble, with perhaps a brief memorandum showing the kernel of the problem in each case. He believed that he could have such materials in the hands of the Japanese Ambassador next week. The Japanese Ambassador agreed that it would be extremely helpful to have such information. Mr. Sayre asked Mr. Yoshizawa to express his opinion with regard to the thought which Mr. Sayre had. Mr. Yoshizawa also agreed that it would be most helpful, but he believed that discussions should start as soon as possible with regard to the setting up of a body such as that suggested by Mr. Kurusu.
The conversation then turned to press reports with regard to recent incidents in Peiping (See separate memorandum65).
- Not printed.↩