JAPAN

TRADE RELATIONS BETWEEN THE UNITED STATES AND JAPAN; FURTHER DISCUS SION OF VOLUNTARY RESTRICTION BY THE JAPANESE OF EXPORTS TO THE UNITED STATES AND THE PHILIPPINES

Continued

Subject

Page

Date and number

1936

Undated [Rec'd Jan. 9]

From the Japanese Embassy

Jan. 9

Press Release Issued by the Department of State

Memorandum setting forth Japanese interpretation of the Gentlemen's Agreement governing Japanese imports of cotton piece goods into the Philippines.

Statement regarding current conversations with the Japanese Ambassador, who reports that no cotton piece goods will be shipped from Japan to the Philippines until after February 1.

Jan. 10 Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser of a Conversation With the Attaché of the Japanese
Embassy

Jan. 23

Discussion of control of cotton rug exports by manufactur-
ers who are not members of the Export Association.
Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

Conversation between Assistant Secretary Sayre and the
Japanese Ambassador relative to imports into the United
States of wool-knit gloves and cotton velveteens manufactured
in Japan and the proposed adjustment of the Philippine cotton
textile agreement; U. S. intention not to transfer detailed nego-
tiations on these matters to Tokyo.

Undated To the Japanese Embassy

Jan. 29 (12)

Jan. 30 (13)

Jan. 31 (20)

Jan. 31 (15)

Advance indication of findings in the Tariff Commission's investigation of manufacturing costs of wool-knit gloves and mittens to ascertain what protective duty should be applied to imports of such items.

(Footnote: Handed to the Japanese Ambassador January 23.) To the Ambassador in Japan (tel.)

Appraisal of difficulties in connection with the working and interpretation of the agreement with Japan restricting amounts of Philippine imports of Japanese cotton textiles for 2 years, and instructions to explain the U. S. position to the Foreign Minister.

To the Ambassador in Japan (tel.)

Instructions to seek an immediate agreement with Japan for the definite limitation of cotton goods exported to the Philippines during January.

From the Ambassador in Japan (tel.)

Representations to the Foreign Minister as instructed in
Nos. 12 and 13 of January 29 and 30. Counterproposal, sub-
ject to the approval of Osaka cotton exporters, made by
Kurusu, Foreign Office official.

To the Ambassador in Japan (tel.)

Desirability of an early agreement with the Japanese Government and of including in the announcement thereof a statement that the two Governments will negotiate a mutually satisfactory rayon agreement.

812

813

814

815

818

819

822

823

824

JAPAN

TRADE RELATIONS BETWEEN THE UNITED STATES AND JAPAN; FURTHER DISCUSSION OF VOLUNTARY RESTRICTION BY THE JAPANESE OF EXPORTS TO THE UNITED STATES AND THE PHILIPPINES-Continued

Date and

number

Subject

Page

1936 Feb. 1

Undated [Rec'd Feb. 1]

Feb. 3 (72)

Feb. 3 (23)

Feb. 4

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

Discussion with Yoshizawa, Counselor of the Japanese Em-
bassy, who, in explanation of the wool-knit glove situation,
stated that the industry had been created largely to supply
the American market and that shipment restrictions would
bring great losses to the manufacturers.

From the Japanese Embassy

825

826

Statement of prices fixed and possible quantity control by the Association of Exporters over wool-knit gloves and mittens. From the Consul General at Shanghai (tel.)

827

From Kobe, January 30: Report of agreement between the Rug Export Association and the Consulate to control shipments of cotton rugs.

From the Ambassador in Japan (tel.)

Kurusu's proposal conditionally accepted by Osaka cotton textile exporters; Department's proposals only partially accepted by Kurusu, who refused to negotiate on rayon question.

828

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

829

Discussion with Yoshizawa regarding the Philippine textile agreement and U. S. imports of wool-knit gloves.

832

Undated To the Japanese Embassy

Feb. 7

Feb. 7 (18)

Statement setting forth the terms under which shipments
of wool-knit gloves may be made from Japan to the United
States which must be accepted by February 8.
(Footnote: Handed to the Counselor of the Japanese Em-
bassy February 4.)

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

Discussion with Yoshizawa, who presented the need for fur-
ther time in securing a final decision with respect to the De-
partment's proposals regarding wool-knit glove imports; state-
ment of extension of time to February 13 telephoned to Yoshi-
zawa following consultation with Tariff Commission members.

To the Ambassador in Japan_(tel.)

833

835

Information to be given Kurusu relative to this Government's position in the matter of the importation into the Philippines of cotton piece goods.

Feb. 8 (25)

From the Ambassador in Japan (tel.)

836

Discussion with Kurusu of points brought out in No. 18 of
February 7.

837

Feb. 13 Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser of a Conversation With the Counselor of the Japanese
Embassy

Decision by Japanese wool-knit gloves exporters that it was
technically impossible to comply with U. S. request and sub-
mission of alternative offer by Japan.

JAPAN

TRADE RELATIONS BETWEEN THE UNITED STATES AND JAPAN; FURTHER DISCUS-
SION OF VOLUNTARY RESTRICTION BY THE JAPANESE OF EXPORTS TO THE UNITED
STATES AND THE PHILIPPINES-Continued

Date and number

1936

Subject

Page

Feb. 14

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

838

From the Ambassador in Japan (tel.)

Feb. 14 (28)

Discussion with Yoshizawa of various points in the American proposal for solution of the wool-knit glove problem and his plan to cable the information to Tokyo.

839

Discussion with Kurusu of points relative to the Department's position on the cotton piece goods exports to the Philippines.

Feb. 15

To the Japanese Embassy

840

Statement of final suggestion for the regulation of wool-knit glove shipments from Japan to United States.

Feb. 15

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

842

Presentation of the U. S. statement (supra) to Hayama,
Third Secretary of the Japanese Embassy.

Feb. 18 Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

843

Presentation by Hayama of Japanese counterproposals regarding wool-knit glove shipments.

Feb. 18

To the Japanese Embassy

845

Reiteration of earlier position in reply to Japanese counterproposals.

Feb. 19 (1690)

From the Ambassador in Japan

846

Feb. 20

Summaries of conversation with Kurusu and of two press
articles indicating growing resentment in Japan against con-
tinued requests from United States that Japanese exporters
voluntarily restrict their shipments to the United States.
To President Roosevelt

849

Summary of U. S. Tariff Commission findings relative to duty on knit gloves and knit mittens, with recommendation that they be approved.

Feb. 26

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

850

Mar. 3

Mar. 3

Discussion with Yoshizawa, who stressed the transshipment
problem in the proposed adjustment of the Philippine textile
agreement.

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

Conversation between Assistant Secretary Sayre and Japa-
nese Ambassador and Yoshizawa regarding proposed readjust-
ment of textile agreement; Sayre's presentation of draft memo-
randum of conversation (infra), apparently unsatisfactory to
Japanese without clear understanding on transshipment prob-

lem.

To the Japanese Embassy

Draft memorandum of conversation (supra), for initialing. (Footnote: Handed to the Japanese Ambassador for reference to the Japanese Government.)

854

859

JAPAN

TRADE RELATIONS BETWEEN THE UNITED States and Japan; Further DISCUSSION OF VOLUNTARY RESTRICTION BY THE JAPANESE OF EXPORTS TO THE UNITED STATES AND THE PHILIPPINES-Continued

Date and

number

1936

Subject

Page

Mar. 9

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

860

Mar. 13

Mar. 23

Mar. 25

Mar. 25

Apr. 3

Apr. 14

Apr. 27

Discussion between Feis, Economic Adviser, and Yoshizawa
regarding the rapid increase during January of U. S. imports of
cotton piece goods from Japan.

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

Confidential information from Yoshizawa, who stated that
the Japanese exporters agreed to the proposed quota reduction
provided the American Government or the Philippines did
something about transshipments.

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser of a Conversation With the Counselor of the Japanese
Embassy

Discussion of certain points regarding the Philippine textile
agreement and the increase of U. S. imports of cotton piece
goods from Japan.

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

Conversation between Assistant Secretary Sayre and Japa-
nese Ambassador and Yoshizawa regarding the Philippine
textile agreement, U. S. imports of cotton piece goods from
Japan, and general questions of Japanese-American trade
relations.

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

Telephone conversation with Yoshizawa reporting a seeming
evasion of the textile agreement and Yoshizawa's intention to
include the information in cable to Tokyo.

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

Discussion with Yoshizawa concerning discrepancy between
United States and Japanese cotton piece goods statistics and
information regarding agitation by the U. S. cotton industry for
restrictive action.

Memorandum by Mr. Roy Veatch of the Office of the Economic
Adviser

Japanese request for another year's extension of the existing
agreement governing the export of cotton rugs from Japan to
the United States.

Memorandum by the Assistant Secretary of State and Mr. Eugene
H. Dooman of the Division of Far Eastern Affairs
Conversation with the Japanese Ambassador, during which
the Secretary of State explained U. S. triangular trade policy
and Assistant Secretary Sayre presented reasons for U. S.
desire for a gentlemen's agreement with Japan to help remedy
U. S.-Japanese trade situation, particularly in respect to cotton
piece goods; memorandum (text printed) read to the Ambassa-
dor.

862

862

866

872

873

877

878

919456-54-6

JAPAN

TRADE RELATIONS BETWEEN THE UNITED States and Japan; Further DISCUSSION OF VOLUNTARY RESTRICTION BY THE JAPANESE OF EXPORTS TO THE UNITED STATES AND THE PHILIPPINES-Continued

Date and number

1936 May 1

May 4

May 5

Subject

Memorandum by Mr. Eugene H. Dooman of the Division of Far
Eastern Affairs

Conversation between Assistant Secretary Sayre and the
Japanese Ambassador and Yoshizawa, who reported that Ja-
pan would prefer that a gentlemen's agreement in the matter
of textile import regulation be concluded rather than an in-
crease in tariff as recommended by the Tariff Commission.
Memorandum by Mr. Eugene H. Dooman of the Division of Far
Eastern Affairs of a Conversation With the Counselor of the
Japanese Embassy

Presentation of Japanese proposal as the Government's final
position in the matter of restriction of imports of Japanese
cotton textiles.

Memorandum by Mr. Eugene H. Dooman of the Division of Far
Eastern Affairs of a Conversation With the Counselor of the
Japanese Embassy

Explanation of U. S. position in probable rejection of the
Japanese proposal of May 4.

May 5

From the Consul General at Hong Kong (tel.)

May 8

May 9

Report by local manufacturers of collusion between the Hong
Kong shippers and Customs employees in Manila in reship-
ment of large quantities of Japanese cotton textiles.

Memorandum by Mr. Eugene H. Dooman of the Division of Far
Eastern Affairs

Conversation between Assistant Secretary Sayre, Ryder of
Tariff Commission, Japanese Ambassador and Yoshizawa re-
garding the unfavorable Japanese reply to U. S. proposal for
restricting imports of Japanese cotton textiles.

Memorandum by Mr. Eugene H. Dooman of the Division of Far
Eastern Affairs

Conversation with Yoshizawa, who presented a further pro-
posal from the Japanese Government."

Conference with the Secretary, who secured the President's approval for giving consideration to the latest Japanese proposals and postponement of action during the week-end on the duty increase on cotton textiles.

Page

883

885

886

887

888

890

May 12

Memorandum by the Assistant Secretary of State

891

Endorsement by the president of the Cotton Textile Institute of the proposed agreement with Japan limiting cotton imports into the United States.

May 21 Memorandum by Mr. Eugene H. Dooman of the Division of Far

May 21 (63)

Eastern Affairs

Telephone conversation with Yoshizawa who regretfully stated that the Japanese Government could not proceed toward the conclusion of a gentlemen's agreement covering cotton piece goods imports into the United States.

To the Ambassador in Japan (tel.)

Presidential proclamation increasing rates of duty recommended by the Tariff Commission on certain types of cotton textiles, following Japan's inability to conclude the proposed gentlemen's agreement.

892

893