Foreign Relations of the United States, 1964–1968, Volume IX, International Development and Economic Defense Policy; Commodities

273. Memorandum of Conversation¹

Tokyo, June 8, 1965.

SUBJECT

• Wool Textiles

PARTICIPANTS

• Japan
  • Yoshihiro Nakayama, Director, Economic Affairs Bureau, Ministry of Foreign Affairs
  • Kiyoaki Kikuchi, Chief, U.S.-Canada Section, Economic Affairs Bureau, Ministry of Foreign Affairs
  • Mr. Fujii, U.S.-Canada Section, Economic Affairs Bureau, Ministry of Foreign Affairs
• United States
  • Warren Christopher, Special Representative of the Secretary of State and Chairman, U. S. Wool Textile Mission
  • Stanley Nehmer, Director, Office of International Resources, Department of State
  • Laurence C. Vass, Minister-Counselor for Economic Affairs, American Embassy, Tokyo

(This meeting took place after the adjournment of the U.S.-Japanese wool textile talks.)

Mr. Nakayama, speaking in somber terms through an interpreter (Mr. Fujii) so that he would not be misinterpreted, said that he would like to apologize to the United States delegation that there had been people on the Japanese side in the meeting who had made emotional comments regarding political issues which had no place in the meeting. He regretted that very much. He said that he planned to call the attention of MITI to this fact and will also call this to the attention of the Japanese industry concerned, especially in view of the significance of the remarks that had been made by Mr. Izaki. Now that the meeting is closed it was practically impossible for the Foreign Office to discuss the problem with the Japanese industry. However, the wool textile problem should be looked at from a long-range point of view. The meeting may not have been satisfactory from the U.S. point of view, but he hoped that the United States would not take away from this meeting the feeling that the U.S. was in a worse position than before the meeting began. He said he wanted to hear from Mr. Christopher what he had in mind, particularly when he returned to Washington.

Mr. Christopher expressed appreciation for the comments made by Mr. Nakayama. He said he realized that Mr. Nakayama would not have wanted the meeting to go the way it did. What we expect to do, he said, depends somewhat on the present conversation. We are dealing with a condition, not a theory. There is a situation of a rapidly rising increase in wool textile imports, particularly worsteds. There is a need for action towards the amelioration of this problem. It may be that this can be accomplished in various other ways besides an international approach. He asked Mr. Nakayama if Japan would agree to come to an international conference if the United Kingdom and Italy agreed. Mr. Nakayama said that the latter was a difficult query. His personal view was that the United States was the better off trying to persuade the United Kingdom and Italy first.

Mr. Christopher asked if it were clear that there was a difference between a request for an international conference and a request for an international agreement. Mr. Nakayama asked, speaking off the record, what did Mr. Christopher really expect to come out of the meeting. Mr. Christopher replied that he hoped the Japanese side would be helpful to the United States in the solution of the problem. He repeated his question, did the Japanese clearly understand that we were not asking for a commitment regarding an international agreement? Mr. Nakayama said that he at least understood this, but that we must understand that the Long-Term Cotton Textile Arrangement was very unpopular in Japan and there is fear that if Japan agreed to international action on wool textiles, Japan would have to agree to controls on other items as well. Mr. Christopher commented that the Japanese had to recognize that when they took over a large part of a market, as they have done in the case of worsteds in the U.S. market, there wold be pressures to control such imports.

Mr. Nakayama said he personally felt strongly that if the U. S. industry approached the Japanese industry, this could be fruitful. A bilateral approach was very important to Japan. The Japanese business community had an instinctive fear of an international agreement. The bilateral way, Mr. Nakayama said, carried greater possibilities.

Mr. Christopher asked if Mr. Nakayama had any suggestions. Mr. Nakayama said that it was very difficult for him to say anything. He was sure Mr. Christopher realized how the business interests had become very emotional and how they got out of control. However, he hoped that with the lapse of time the Japanese side would consider carefully what the United States had said. He indicated that as soon as the dust had settled he hoped to have a meeting with MITI and the Foreign Office to discuss the problem. Mr. Christopher commented that there might well now be pressure to put wool textiles on the agenda for discussion at the July Cabinet Ministers meeting.

The meeting concluded with a discussion of what would be said to the press in case of inquiries. It was agreed that Mr. Christopher would say that the United States presented its case at the opening meeting on Monday, that even though we received a negative response from the Japanese side on Tuesday, we still had hopes that the situation would be remedied. He could say that although Japan is particularly adverse to an international agreement, there may be some other approach to solve the problem.

1. Source: Department of State, Central Files, INCO–WOOL 17 US–JAPAN. Limited Official Use. Drafted by Stanley Nehmer.