Memorandum by Mr. Joseph W. Ballantine of the Division of Far Eastern Affairs

Conversation: Dr. Claudius T. Murchison, President, Cotton Textile Institute
Mr. Jacobs2
Mr. Waring, Tariff Commission3
Mr. Ballantine

Dr. Murchison was told of the decision of the Interdepartmental Committee that it would be best to try to renew for one year the present Philippine cotton textile agreement as a governmental agreement. It was explained to him that the chief reason for this decision was the present state of flux existing in our relations with the Philippines. Dr. Murchison expressed himself as entirely satisfied with this decision and hoped that we could make it clear to the Japanese informally or otherwise that we considered that the quantities of Japanese textiles transshipped from Hong Kong to the Philippines should be included within the quota provided for in the existing agreement.

Dr. Murchison made some general observations in regard to the probability that it would be increasingly difficult to make restrictive agreements with the Japanese in view of the outcome of the visit to [Page 798] the United States of the Japanese Economic Mission which had its principal contacts here with the exporters of raw cotton and the importers. As a result of those contacts the Japanese have become convinced that the United States would go a long way to avoid sacrificing its raw cotton market in Japan.

After Mr. Murchison left, it was decided that an aide-mémoire of what should now be said to the Japanese Ambassador should be prepared and be handed to him at an early date.

  1. Joseph E. Jacobs, Chief of the Office of Philippine Affairs.
  2. Frank A. Waring, assistant to the Director of Research.