611.9417/71
Memorandum by Mr. Roy Veatch of the Office of the Economic Adviser
| Conversation: | The Japanese Ambassador; |
| Mr. Sayre; | |
| Mr. Turner; | |
| Mr. Veatch. |
The Ambassador called on Mr. Sayre to deliver the reply of his Government to the suggestion that conversations be inaugurated with respect to the possibility of reaching agreement upon some form of voluntary control by Japanese exporters of shipments of certain textiles to the United States.
The Ambassador handed a typed statement7 to Mr. Sayre and elaborated upon the reasons which led the Japanese Government to say that the Japanese cotton textile manufacturers and exporters are of the opinion that the American proposal is unacceptable. He emphasized particularly the small amount of Japanese cotton goods entering the United States, an amount which should not constitute a menace to the American industry. Personally, he said, he did not place much importance upon the second reason, the fact that importation [Page 1038] into the United States of Japanese cotton goods tends to adjust in a small measure the balance of trade between the United States and Japan, which is “generally and normally unfavorable to Japan.”
The Ambassador emphasized the second point in the typed statement, the action of the Japanese manufacturers and exporters in voluntarily restricting their exports to the United States and called particular attention to the fact that this voluntary control of exports is already in force. It was the opinion of the Japanese Government, therefore, that there was little likelihood of a repetition of the abnormal increase in cotton textile exports to the United States which occurred during the first part of 1935.
Mr. Sayre expressed regret at the decision of the Japanese Government that it was unable to discuss a possible agreement but he said, of course, that that decision would have to be accepted by this Government. He was glad to learn that Japanese exporters are restricting their shipments to this market but he supposed that this action would not remove the fear of the American industry with regard to the future.
Mr. Sayre said that it probably would be desirable to make a statement to the press based upon the information which had been conveyed by the Ambassador. The Ambassador was then asked if he saw any objection to making a statement to the press which would stress the voluntary action of the Japanese exporters and which might state that this Government would intend to raise the question of some formal agreement covering such exports or would consider other methods of controlling them if Japanese exporters were not successful in regulating their shipments with the result anticipated by the Japanese Government. In reply the Ambassador said that he saw no objection whatever to such a statement and that he thought it would be useful to make some such statement in an effort to allay the fears of the domestic industry. If it were desired, the text of a statement might be read to him or to Mr. Yoshizawa at the Embassy before released but that he did not consider that necessary.8