The Department of State to the Japanese Embassy


Reference is made to the existing agreement relating to the importation of Japanese cotton piece goods into the Philippines which was originally entered into on October 11, 1935,38 for a period of two years [Page 625] and extended for an additional period of one year, from August 1, 1937 through July 31, 1938, by an exchange of memoranda between the Department of State and the Japanese Embassy at Washington dated respectively July 2 and July 27, 1937.39

Inasmuch as the aforementioned agreement, as extended, expires on July 31, 1938, the United States Government wishes to declare to the Japanese Embassy, for communication to the Japanese Government and to the Association of Japanese Exporters of Cotton Piece Goods into the Philippines, its policy for a further period of one year from August 1, 1938 through July 31, 1939, in regard to the imports into the Philippines of Japanese cotton piece goods, to-wit:

So long as the imports into the Philippines of Japanese cotton piece goods do not exceed 11,250,000 square meters in any quarter, the United States Government will take no action directed toward securing an increase in Philippine tariff rates on cotton piece goods to become effective prior to August 1, 1939. If imports in any quarter should amount to less than or more than 11,250,000 square meters, the deficiency shall be added to or the excess subtracted from the allowance for any succeeding quarter or quarters, providing that such excess of imports as may be brought into the Philippines within any quarter shall never be more than 2,250,000 square meters (this being twenty percent of the normal quarterly quota allowance).