611.9417/178b
The Acting Secretary of State to the Ambassador in Japan (Grew)
Sir: Reference is made to the Department’s telegram No. 154 of December 5, 3 p.m., informing you that a committee representing the American cotton textile industry is to proceed to Japan to confer with representatives of the Japanese cotton textile industry.
Beginning in the summer of 1935, informal discussions were held between the Department and the Japanese Embassy with a view to the Japanese Government undertaking to exercise control over exports [Page 941] of cotton piece goods from Japan to the United States. Although agreement was reached with regard to the total volume to which such exports should be restricted, the request that the American Government exercise control over imports of cotton piece goods from Japan, for which, of course, this Government has no legal warrant, precluded the making of any arrangement. On May 21, 1936, the President acting on a recommendation from the Tariff Commission ordered a moderate increase in the tariff on certain types of cotton piece goods the principal country of exportation of which is Japan.
Following that action by the American Government, Dr. Claudius T. Murchison, President of The Cotton-Textile Institute, laid before the members of the Institute a proposal that a committee representing the American cotton textile industry visit Japan and place before the Japanese cotton textile industry the possibility of an understanding being reached with regard to the Japanese industry exercising control of shipments of cotton textiles to the American market, and perhaps of the setting up of a joint Japanese-American trade committee to deal with continuing problems affecting the two industries.
This Government looks with decided favor upon the general purpose of the project, which is in all respects a private one. It is understood that the Japanese Government likewise looks with favor upon this effort to obtain, through private initiative, a mutually satisfactory adjustment of a trade problem.
There are enclosed a copy of a confidential circular dated September 18, 1936, addressed by Dr. Murchison to members of the Board of Directors of The Cotton-Textile Institute, and an address on the subject “The Promotion of Japanese-American Trade Relations”, delivered on November 19, 1936, by Dr. Murchison at the American-Japanese Trade Council Luncheon of the National Foreign Trade Convention.86 There is also enclosed a copy of a memorandum86a of a conference which took place on December 7, 1936, between Dr. Murchison and members of his committee, and officers of the American Government.
Although the American Government is in no way involved in the project on which Dr. Murchison and the members of his committee are engaged, it is suggested that the Embassy and the consular officers in Japan extend such courtesies and assistance to these gentlemen as may be appropriate.
Very truly yours,