611B.003/193

The Counselor of the Japanese Embassy ( Suma ) to the Chief of the Office of Philippine Affairs ( Jacobs )

My Dear Mr. Jacobs: I have received information that the amendment of the Tariff Act of the Philippines, which recently passed the Philippine Congress, is to include provisions for the imposition of [Page 468] pierage on export lumber. This imposition will work great hardship not only to Philippine exporters of lumber, whose business has yielded little profit owing to the low price of Philippine lumber, but to Japanese engaging in this industry in the Philippines due to the fact that 60 per cent of Philippine export lumber is destined to Japan and this amount will necessarily decrease because of the subsequent rise in the price of Philippine lumber. As a consequence, it is anticipated that serious social problems may arise in the Philippines, such as the dumping of surplus lumber in the domestic market and the increase of unemployment.

In view of the untoward consequences of the imposition of pierage not only against Japanese in the Philippines but against Americans and Filipinos, as well, engaging in the industry, and the inconveniences caused both to Japan and the Philippines, as above stated, I beg to request you to be good enough to take proper steps to the end that the foregoing be brought before the President for his consideration when the provisions are presented to him for sanction.

It is hoped that the President may see his way to withhold approval of the imposition of pierage on Philippine export lumber on the above-mentioned grounds and because of the importance of the economic relations between Japan and the Philippines.

Sincerely yours,

Y. Suma