611B.9417/334
The Department of State to the Japanese Embassy
Memorandum
The Japanese Embassy having informed the Department of State that the Japanese Government and the Association of Japanese Exporters of Cotton Piece Goods desire a renewal of the existing arrangement relating to the importation of Japanese cotton piece goods into the Philippines, the United States Government wishes to declare to the 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, 1940 through July 31, 1941, toward the importation 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, 1941. 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).