109. Minutes of the Cabinet Meeting, White House, Washington, January 18, 1957, 9–10:50 a.m.1
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[Page 248]Foreign Trade—Sec. Weeks set forth the main provisions of the Japanese Textile Agreement2 and noted how it would help segments of the textile industry that had been hurt recently by Japanese imports. He recounted the meeting that Asst. Sec. McClellan3 and he had had with directors of the American Cotton Manufacturers Institute, informing them of the agreement and also serving notice that they should not look toward further escape clause relief. Also, the Institute members were urged to work for the removal of State laws discriminating against the Japanese.4 Subsequently, the Institute directors passed a resolution very favorable toward the Administration action.
The President was delighted to have this report. Sec. Dulles commented that had the negotiations broken down the Japanese would almost assuredly have begun to develop closer relations with Communist China. In response to a query from Sec. Wilson, Secs. Weeks and Dulles stated that the agreement can be reopened to further negotiation should basic conditions change.
Sec. Weeks informed the President that he would soon receive a unanimous recommendation to disapprove the velveteen recommendations made by the Tariff Commission.5 He noted also that the textile industry is withdrawing its request for a tariff study concerning gingham.
[Page 249]Mr. Weeks cited the advantage that Japan had obtained from this agreement by way of strengthening its negotiating position with other nations.
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- Source: Eisenhower Library, Whitman File, Cabinet Papers. Confidential. Drafted by Minnich.↩
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Reference is to an undertaking by Japan to limit its export to the United States of a number of different types of cotton textiles. The undertaking is contained in the Japanese Embassy’s note, January 16, and an attached descriptive statement, filed with William Ockey’s memorandum of a conversation held January 16. (Department of State, Central Files, 411.946/1–1657) Main provisions of the program are outlined in a Department of State press release issued on January 16, printed in Department of State Bulletin, February 11, 1957, p. 218.
Negotiations leading up to the Japanese undertaking were conducted principally in Washington through the Japanese Embassy. On the U.S. side, officials of the Departments of State, Commerce, and Agriculture were all involved directly in the negotiations. White House representatives included Sherman Adams, Assistant to the President, and Gabriel Hauge, a Special Assistant to the President. U.S. officials consulted industry representatives and interested Congressmen in formulating the U.S. position.
Documentation on the negotiations is in Department of State, Central Files 411.9441, 411.946, and 411.949, and ibid., International Trade Files: Lot 76 D 75, and Secretary’s Staff Meetings: Lot 63 D 75. Other pertinent material is in Eisenhower Library, Council on Foreign Economic Policy Records. For an evaluation of the effect of the Japanese undertaking after it had been in operation for several months, see a report by Herbert Blackman of the Department of Commerce, July 12, 1957, vol. IX, p. 253.
↩ - Harold C. McClellan, Assistant Secretary of Commerce for International Affairs.↩
- For a description of these laws and an assessment of the efforts made by the Federal government to bring about their repeal, see the memorandum of conversation, August 2, 1957, vol. IX, p. 260.↩
- On January 22, the President announced that in view of the recent Japanese undertaking to control its textile exports to the United States, he was not taking action on the Tariff Commission’s recommendation of October 24, 1956, to apply the escape clause on imports of cotton-velveteen fabrics. For text of the White House press release, January 22, see Department of State Bulletin, February 11, 1957, p. 219.↩