Foreign Relations of the United States Diplomatic Papers, 1935, The Far East, Volume III

611.9417/71

The Japanese Embassy to the Department of State⁹

undated

1. The Japanese cotton textile manufacturers and exporters are of the opinion that the recent American proposal is unacceptable for the reasons:

a. That the very small amount of Japanese cotton goods imported into the United States cannot constitute an appreciable menace to the American cotton textile industry.

b. That the importation of Japanese cotton goods tends, though in a small measure, to adjust the balance of trade between the United States and Japan, which is generally and normally unfavorable to Japan.

2. The Japanese Government, however, has been taking a stand that the difficulties confronted on the American side should be given due consideration. At the strong desire of the Japanese Government, the Japanese manufacturers and exporters have decided to exercise self-restriction in exporting to the United States. The self-imposed restriction is in force. Accordingly, there is little likelihood the abnormal increase in exportation to the United States as occurred during the first semester of 1935 will be repeated in the future.

3. In view of the recent trend of recovery in general economic conditions in the United States the Japanese manufacturers and merchants seem to be justified in feeling that even such self-restriction is a great sacrifice on their part.

4. In the circumstances, it is hoped that the United States Government will, relying upon the self-restriction on the part of the Japanese manufacturers and merchants, not insist upon any positive restrictive measure at this moment.

9. Handed to the Assistant Secretary of State by the Japanese Ambassador on December 21.