611.943 Gloves/12
Memorandum by Mr. Roy Veatch of the Office of the Economic Adviser
| Conversation: | Mr. Tsuneo Hayama, Third Secretary of the Japanese Embassy, |
| Mr. Feis, | |
| Mr. Veatch. |
Mr. Veatch called Mr. Hayama during the morning and asked if a decision had been reached at the Embassy as to whether the Ambassador would wish to come to the Department to receive the typed statement31 prepared for the Embassy and to discuss the matter further or whether Mr. Hayama would come to the Department to receive this statement. Mr. Hayama said that the matter had been discussed after Mr. Yoshizawa’s visit to the Department last evening and that it was agreed that Mr. Hayama should come for the statement.
Mr. Hayama came in to see Mr. Veatch, who handed him the Department’s typed statement. Mr. Hayama read this statement carefully and repeated his understanding of the points made. He then said that he would like to raise one question which had occurred to him, although he had no instructions to bring up this point. Since the American Government was now proposing a three-year agreement, he wondered what commitment or responsibility of the American Government was implied for the entire period. Would the Japanese exporters be justified in assuming that there would be no fear of increase [Page 843] of tariffs or taxes on imported wool-knit gloves during the three-year period? Mr. Veatch suggested that he would like to have Mr. Feis come in and express his opinion on this point.
Mr. Feis joined the discussion, and after hearing Mr. Hayama’s question, he explained in some detail the division of authority in the American Government and the inability of the Executive to pledge the legislative branch with respect to future action or to pledge a subsequent administration even with respect to executive action. So far as this administration was concerned, however, the suggestion contained in the statement handed to Mr. Hayama included the pledge that the Executive during this administration would not proceed with the tariff action recommended in the Tariff Commission’s report on wool-knit gloves if the Japanese exporters should agree to the proposed limitations. Furthermore, it might be assumed, in his opinion, that this administration would seek to discourage any tariff increases on wool-knit gloves during the life of the agreement and that probably in line with this policy the President would veto any such increases if by chance they were enacted by Congress. There would exist, of course, the possibility that Congress might pass such an act over the President’s veto. Mr. Veatch and Mr. Feis were in agreement, however, that the purpose of the proposed agreement with the Japanese for voluntary restriction by Japanese exporters would be to discourage or prevent tariff increases on wool-knit gloves, and it was the opinion of the administration that control of shipments in the manner proposed in this statement would have the effect of removing the pressure for tariff action, not only now but during the life of the agreement.
Mr. Hayama said that after Mr. Yoshizawa’s return from the Department of State the night before, they had sent a cable to Japan stating the main points of the American proposal. He would now make certain that those points agreed with the written statement just handed to him and he would dispatch a supplementary cable setting forth the details contained in this statement.
- Supra.↩