Memorandum of Conversation, by the Assistant Chief of the Division of Far Eastern Affairs (Ballantine)

Mr. Suma referred to his conversation with Mr. Ballantine on June 8 in regard to the question of the renewal of the Philippine Cotton Textile Arrangement and said that a telegram had now been received stating that the Japanese Association of Exporters was willing to extend the arrangement for a period of one year and would accept the present quota of 45,000,000 square meters provided that the written instrument of renewal contained no explicit clause, such as had been suggested, that it was understood that if the amount of Japan’s exports exceeded the quota agreed upon prior to the expiration of the term of the agreement the Government of the United States would be released from its obligations under the arrangement.

Mr. Ballantine said that he would inform the interested officers of the Department of Mr. Suma’s message and it was arranged that Mr. Ballantine would endeavor to consult with his associates on drafts of notes to be exchanged in connection with the proposed extension of the arrangement and that as soon as such drafts were prepared we should expect to seek a further discussion with Mr. Suma.

J[oseph] W. B[allantine]