250. Telegram From the Department of State to the Embassy in Japan1

1911. Wool Textiles. Deptel 1822.2 Embassy is requested to clarify with GOJ discussion between President and Sato on wool textile issue. President said he would like to consider asking group of Govt (possibly including members of Congress) and industry reps to discuss wool textile problem with their Japanese counterparts. President did not propose meeting limited to industry reps as GOJ has indicated, nor would this be acceptable approach in view (a) need of two Govts to come to grips with problem, and (b) possible effect of US anti-trust laws.

Purpose of meeting would be to have candid and thorough discussion on wool textiles which two govts have not had to date. Presence of industry reps at some sessions could prove mutually beneficial in learning of each other’s problems. USG has not changed its view of need for multilateral meeting of govts on wool textiles and also wishes to explore this possibility with GOJ.

US would be willing to have proposed meeting in Washington but would not object to holding meeting in Tokyo.

At final session between President and Sato at which wool textiles were discussed in some detail, President charged Ambassador Reischauer with working through plans for such meeting.

Ball
  1. Source: Department of State, Central Files, INCO–WOOL 17 US–JAPAN, Confidential; Priority. Drafted by Stanley Nehmer (E/OR) on January 29; cleared by Robert W. Barnett (FE), James S. Love (Commerce), Herbert N. Blackman (Labor), Thomson and Feldman (White House), Harald B. Malmgren (STR), John J. deMartino (S/S), and Francis Bator; and approved by G. Griffith Johnson.
  2. In telegraph 1822 to Tokyo, January 23, the Department of State denied that there were plans to follow up on Japan’s willingness to hold industry-to-industry talks on the wool textile trade. President Johnson had suggested instead “an exchange of views” between a cross-section of government and industry representatives on both sides during the January 12–13 official visit of Prime Minister Sato. (Ibid.)