611b.9417/226: Telegram

The Consul at Hong Kong (Donovan) to the Secretary of State

Reference is made to Consul General Hoover’s confidential telegram of May 5, 5 p.m., 1936,95 regarding exports of Japanese textiles from Hong Kong to the Philippines.

Mr. Shotaro Kakisaki, a representative of the Japan Cotton Yarn and Piece Goods Exporters Association for East Asia called at the Consulate General yesterday to discuss the situation. He presented a card of introduction from my Japanese colleague.

According to Mr. Kakisaki Japanese are unable to prevent Japanese textiles from reaching Hong Kong since they [are] purchased by Chinese firms in good faith with branches in Kobe and Osaka and the business is very difficult to control. He said that if the names of the Chinese firms in Hong Kong exporting these textiles to the Philippines were furnished the Association it would be in a position to prevent their obtaining Japanese textiles for reshipment from Hong Kong to the Philippines. He was informed of the confidential character of consular invoices and his request refused.

However, since this appears the only practicable method of control for Hong Kong the Department may wish to give this request consideration.

The Consulate General has available accurate information taken from consular invoices regarding the country of origin of textile exports [Page 787] from Hong Kong to the Philippines during the past 6 months.

I am unable to find the report mentioned in Consul General Hoover’s telegram of May 5, The file on this subject was turned over to me upon his departure and a report thereon is now in course of preparation.

During January 2, 104,000 yards of cotton textiles were exported from Hong Kong to the Philippines of which 1,731,000 yards were manufactured in Japan and the remainder in Hong Kong and China. Chinese firms were the only shippers of these Japanese textiles.