230. Memorandum of Conversation1
SUBJECT
- Wool Textiles
PARTICIPANTS
- Ambassador Ryuji Takeuchi, Embassy of Japan
- Mr. George W. Ball, Acting Secretary
- Mr. Stanley Nehmer, Deputy Director, Office of International Resources
- Mr. Robert Anderson, Special Assistant to the Under Secretary
- Mr. Richard W. Petree, Acting Officer-in-Charge, EA/J
Ambassador Takeuchi remarked that he had been surprised at the small four-vote margin of Prime Minister Ikeda’s victory in the Liberal Democratic Party presidential election on July 10. Although it was gratifying that the Prime Minister had won on the first ballot, the meager margin by which he defeated his factional opponents would significantly affect the strength of his position in forming a new cabinet and establishing the policies of the new administration. The Prime Minister will probably be forced to give more weight to consideration of the views of the other major factional leaders in the party than he has heretofore.
[Page 617]Wool Textiles
Ambassador Takeuchi said the first matter he wished to raise with the Acting Secretary was the wool textile mission the U.S. Government reportedly plans to send to London and Rome.2 The Government of Japan (GOJ) had asked him to obtain more information about the background and purpose of this mission.
The Acting Secretary said that when he had met this spring with a group of Japanese industrialists, he told them that we do not know whether domestic pressure from industry and Congress would force the United States to seek a wool textile agreement. The concern of Congress and domestic industry has made it seem advisable to look into the feasibility of an agreement. The forthcoming mission will be an exploratory one and will not prejudice the U.S. decision concerning an agreement. There have been indications, especially from the British, that such an agreement is not looked upon with favor. We therefore wish to make a sounding of attitudes toward a wool textile agreement in these two capitals in Europe. We do not, of course, know what the U.S. Government’s decision on a wool textile agreement will be. If we encounter serious opposition to the idea in London and Rome, this of course will be taken into account in our deliberation of the problem. We hope only that the forthcoming mission will be able to get a better sense of the opposition we have heard exists in London and a clearer idea of the views of the Italians, about which we do not have very much formation.
Ambassador Takeuchi asked if, therefore, the forthcoming wool textile mission to Europe will be different from the 1961 mission of Acting Secretary Ball to Tokyo on cotton textiles. The Acting Secretary said it would be quite different, because in the case of his visit to Tokyo he was acting on the basis of a U.S. Government decision, whereas the mission to London and Rome is exploratory and does not reflect any U.S. Government decision at this time. He suggested to the Ambassador that he report to the GOJ that the mission to London and Rome will be entirely exploratory.
Ambassador Takeuchi asked whether the U.S. Government plans to send a wool textile mission to Japan, emphasizing that the GOJ is not asking for such a mission. The Acting Secretary said that if the exploratory mission to London and Rome found some indication of favor for a conference on wool textiles, the U.S. would probably send a mission to Tokyo. At this stage, however, Japan being farther away, it seemed best to explore the current attitudes toward a wool textile agreement in London and Rome, since British and Italian wool textile imports into the United [Page 618] States are among the top three in volume, along with Japan. If the mission’s exploratory discussions in London and Rome make it clear that a conference or agreement on wool textiles is not feasible, the United States would not plan to send a mission to Japan.
Ambassador Takeuchi observed that Mr. Kawada of the Japanese Embassy had told him that Mr. Nehmer had said the U.S. intended to send a mission to Europe now and another one to Japan at a later time. Mr. Nehmer corrected this impression by saying he had informed Mr. Kawada that after the European mission returns with its report on attitudes in London and Rome, the U.S. Government would have to come to a decision about whether a wool textile agreement appears feasible and whether the prospects would justify further exploratory discussions with Japan.
Mr. Takeuchi said it appeared that the United States might very well be approaching Japan with two votes already safely in its pocket. The Acting Secretary said it would not work that way. In the first place, we already know that the British are inclined to oppose a wool textile agreement. If after talking with the British it appears that they might be willing to consider such a position, we might then propose to continue discussions with Japan. The forthcoming European discussions are only exploratory. We will drop any plans for a wool textile agreement if the European discussions show such a plan to be unfeasible. The Acting Secretary said we first thought of sending a mission around the world, including Tokyo as well as the other European capitals, but it finally was decided to proceed along the present lines.
Ambassador Takeuchi said it appeared to him that there are three possible cases that might arise from the result of the European mission: 1) two negative votes from London and Rome; 2) one negative and one favorable vote from Europe, in which case Japan would have the balancing vote; and 3) two favorable responses from Europe, in which case Japan would be in a difficult position.
The Acting Secretary again pointed out to Ambassador Takeuchi that the British do not look with favor on a wool textile agreement. He said the U.S. Government will decide whether to hold discussions with Japan after getting the views of the British and the Italians. The wool textile industry in the U.S. has also been conducting exploratory discussions in Europe. They report views quite different from those received by the U.S. Government. Because of this pressure from industry to press forward with a wool textile agreement, we feel we must explore further the current views in London and Rome.
Ambassador Takeuchi asked whether there was any intention to discuss this matter with France, the Netherlands, and other European countries. The Acting Secretary replied that this mission will not hold discussions outside of London and Rome. It is our present thought that [Page 619] we would talk with Japan, France, and other nations having an interest in this problem if the results of the mission’s exploratory discussions in Rome and London appear to warrant the effort.
The Acting Secretary agreed with Ambassador Takeuchi’s summation to the effect that the mission bears no specific proposals on its trip to London and Rome and is only sounding views on those capitals. Concerning publicity about the forthcoming mission, the Acting Secretary said we hoped to keep it to a minimum, but observed that there would invariably be some publicity. Mr. Nehmer reported that there have already been some speculative stories in the press. The Acting Secretary said it is impossible to keep such matters confidential for long, but we hope to avoid as much as possible the kind of publicity which will tend to increase the pressure on the U.S. Government from industry and Congress.
Ambassador Takeuchi asked what should the Japanese Government say, and more specifically, what should he say publicly with regard to the wool textile mission. He said he would like to be able to indicate to the press that he had been informed by the Acting Secretary that a mission is going to approach the British and Italian Governments with regard to a wool textile agreement and that the United States will inform the Japanese later of the result of the explorations. The Acting Secretary suggested that it would be appropriate for the Ambassador only to say that he had discussed wool textiles, but not to give any indication that the question of the mission had been discussed. The Acting Secretary said that we want to avoid publicity to the extent possible in order to reduce pressure on the Administration from the domestic industry and from the Congress. Ambassador Takeuchi pressed the Acting Secretary on this point and suggested that it would be very desirable if he were able to say something about the mission to the press. The Acting Secretary pointed out that neither the Department nor the British or Italian Embassies had confirmed the rumors currently appearing in the press and therefore it would be inappropriate for the Japanese Embassy to say something to the press on this subject. The Ambassador suggested that the point be left for the moment until other items could be discussed. After other items (reported separately) had been discussed, the Ambassador returned to the question of publicity regarding the wool textile mission. After further discussion, which repeated the various points previously made, the Ambassador concluded by saying that he would not mention wool textiles at all to the press.