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

The attached aide-mémoire4 in regard to the renewal of the Philippine cotton textile agreement was handed to Mr. Suma, Counselor of the Japanese Embassy, by Mr. Hornbeck today. Mr. Hayama, Second Secretary of the Japanese Embassy, Mr. Fox of the U. S. Tariff Commission, and Mr. Ballantine were also present.

Mr. Hornbeck pointed out that the reference in the aide-mémoire to the independent status of the Philippines was to be interpreted as referring not to the present status of the Philippine Islands but to the status which it was contemplated would be created in the future by the independence act.

Mr. Suma raised a question in regard to whether the proposal that the maxima mentioned would include all importations into the Philippines of cotton piece goods of Japanese origin did not represent a modification of the existing agreement. Mr. Fox explained that this proposal was merely a clarification of our original intention in regard to the existing agreement, as the question of the possibility of transshipment of Japanese cotton piece goods through Hong Kong had not then been envisaged by us and had subsequently been an open question.

  1. Infra.