611B.9417/224
Memorandum by Mr. William T. Turner of the Division of Far Eastern Affairs
| Conversation: | Mr. Sayre; |
| Mr. Seijiro Yoshizawa, Counselor, Japanese Embassy; | |
| Mr. Turner. |
Mr. Yoshizawa called on Mr. Sayre at noon. He stated that he had finally received from his Government a reply to repeated requests that some action be taken in regard to the matter of transshipment at Hong Kong of Japanese textiles to the Philippine Islands. He handed to Mr. Sayre a memorandum80 containing the proposals of the Japanese Government, which, he said, represented the maximum concession of the Japanese Government and, in his opinion, constituted a definite contribution toward the solution of this problem. Mr. Sayre expressed gratification that the Japanese Government was making such a determined effort toward solving this problem and expressed appreciation of the cooperative attitude of the Japanese Government.
After examining the proposal, Mr. Sayre asked whether, with the proposed measures in force, the Japanese Government would consider transshipments from Hong Kong as included within the total figure of Japanese textile exports to the Philippine Islands. Mr. Yoshizawa replied that he did not think that his Government was prepared to concede on that point. Mr. Sayre then reminded Mr. Yoshizawa that the original textile agreement was based on the principle of sharing equally the Philippine market, whereas the actual result has been that the volume of Japanese textiles, including those transshipped from Hong Kong, is greater than the volume of American textiles entering the Philippine Islands. He handed to Mr. Yoshizawa a sheet containing figures which show the preponderance of Japanese textiles in the Philippine trade.81 Mr. Yoshizawa replied that while it was of course understood from the first that the basis of agreement was an equal sharing of the Philippine market, yet the Japanese Government was disinclined to negotiate on that basis. He stated that during the negotiations leading up to the agreement emphasis had been focused on figures, that therefore the Japanese Government would not wish that discussions with regard to the agreement revert to the principle of equal sharing of the market.
[Page 931]Mr. Sayre stated, in regard to the proposals submitted by Mr. Yoshizawa, that he would discuss them with his associates and on a later occasion would again take up with Mr. Yoshizawa the matter of adjustment of the figures of importations into the Philippine Islands. He said that he would be favorably inclined to overlook the excess of Japanese imports already entered on condition that definite arrangements in regard to future importations could be made.
After leaving Mr. Sayre’s office, Mr. Turner asked Mr. Yoshizawa whether these proposed measures were already in effect, or whether they were tentative and required acceptance by the American Government. Mr. Yoshizawa replied that the measures were contingent on acceptance by the United States Government.