611.9417/150
Memorandum by Mr. Roy Veatch of the Office of the Economic Adviser
Mr. Veatch handed to Mr. Yoshizawa memoranda71 on the growth of competition in the American market of cotton hosiery and of cotton [Page 917] velveteens imported from Japan, stating that these memoranda had been prepared at Mr. Sayre’s request so that this information might be placed at the disposal of the Japanese Embassy. Mr. Veatch recalled that in a previous conversation Mr. Sayre had told the Japanese Ambassador and Mr. Yoshizawa that such statements would be prepared for the Embassy with regard to any commodities importations of which were creating an unusual competitive situation in the United States. Memoranda had been prepared only with respect to these two commodities at the present time; data with respect to other commodities might be presented to the Japanese at a later time when more information was available and perhaps through the medium of a joint Japanese-American official committee in Washington should that committee be created.
Mr. Yoshizawa expressed his appreciation of this information and asked certain questions with respect to it. On the authority of Mr. Graham Clark, Chief of the Textile Division of the Tariff Commission, Mr. Veatch informed Mr. Yoshizawa that the Tariff Commission has in progress an investigation of imports of cotton velveteens under its general powers (Section 332 of the Tariff Act of 1930), in response to a Senate Resolution, and that “it might be necessary” to change this investigation into a 336 investigation at some time in the future. On the same authority he was informed that the Tariff Commission has received a request for action under Section 336 with respect to cotton hosiery imported principally from Japan and that the Commission now has under way a preliminary investigation and, on the basis of the facts disclosed by this investigation, will determine whether or not to order an investigation under Section 336.
Mr. Yoshizawa said that he had expected memoranda on more commodities, and that he had understood Mr. Sayre to say that a list would be prepared, for the Japanese Embassy, of all commodities imported from Japan against which complaints had been made by American competitors. Mr. Veatch doubted that useful memoranda could be prepared on many commodities at the present time, and Mr. Yoshizawa agreed that this material might appropriately be brought to the attention of the Japanese Embassy through the proposed joint official committee later in the year. He did feel that it would be useful, however, if the Embassy could be given as soon as possible a list of commodities against which complaint had been made, including if possible a statement of whatever investigation or action has been started upon these complaints. Mr. Veatch was of the opinion that this list could be prepared for the Japanese Embassy.
Mr. Veatch also informed Mr. Yoshizawa, at Mr. Sayre’s suggestion, that Mr. Sayre had requested that a draft be prepared in the Department immediately regarding the form and functions of the proposed [Page 918] joint official committee representing the Japanese Embassy and the American Government. This draft would then receive immediate attention in the Department and the Japanese Embassy would be informed as soon as Mr. Sayre was ready to discuss the matter.
- Not printed.↩