611.006 Fish/20

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

Conversation: Mr. Keinosuke Fujii, Chargé d’Affaires, Japanese Embassy
Mr. Takaharu Ito, Second Secretary, Japanese Embassy
Mr. Dooman.

Mr. Fujii said that in accordance with a suggestion made to him by Mr. Sayre, upon whom he called last week, he had come today to talk over informally the possibility of American and Japanese Governments entering into conversations looking toward the satisfactory adjustment of imports of tuna fish from Japan. Mr. Fujii stated that the conversations which had been held in California between American and Japanese tuna interests had broken down and that the Japanese representatives had returned to Japan. The Japanese Government, in accordance with the view set forth in the memorandum presented to the Secretary on June 20 by the Japanese Ambassador (See 611.9431/53), would be appreciative of an opportunity to discuss with the American Government the possibility of finding a mutually satisfactory adjustment of the situation existing in the tuna fish industry before action is taken by the American Government to restrict the importation of tuna fish from Japan.

I called up Mr. Gresham, Acting Chief of the Imports Division, N. R. A., and asked whether any information had been received with regard to the conference between American and Japanese representatives [Page 811] of the tuna fish interests. Mr. Gresham said that he had today received a letter from the attorney for the Southern California Tuna Packers to the effect that during the past few days the conversations had taken a favorable turn. Mr. Gresham assumed, therefore, that the conversations had not ended. In accordance with the request of the American interests, action had been suspended on the complaint received by the N. R. A. from the American tuna interests. I then asked Mr. Gresham whether the N. R. A. would be favorable in principle to conversations being held between the Governments concerned with regard to the tuna question in the event that the conversations now taking place in California were abortive. Mr. Gresham replied that he favored the idea, but that he thought it might be preferable to hold the matter over until it could be made a part of the negotiations with the Japanese Government regarding the conclusion of a general tariff agreement. I told Mr. Gresham that I had no knowledge that any decision had been taken to conduct such negotiations with Japan, but that I would note his views with regard to the desirability of holding informal conversations covering tuna fish.

I then informed Mr. Fujii that information received by N. R. A. indicated that the conversations not only had not been concluded but that they seem to have taken a favorable turn. Mr. Fujii seemed somewhat surprised and pleased, and he said that he would immediately telegraph the Japanese Consul at Los Angeles and ask for a report.

Referring to the memorandum, above-mentioned, of the Japanese Ambassador, I said that Mr. Saito was Under a misapprehension in stating that this Government is actually contemplating placing restrictions on the importation of Japanese porcelain and pottery; that hearings were being held; but that that fact did not necessarily imply that the establishment of further restrictions are under contemplation. I expressed the hope that they would bear this fact in mind in the event that informal conversations were held with regard to tuna fish, for the reason that the American Government might find it necessary to hold a hearing on imports of tuna fish when conversations with the Japanese Government were being held. Mr. Ito said that this circumstance was well understood, but that the Japanese Government hoped that it would be possible to enter into conversations with regard to tuna fish before any recommendations of a restrictive nature are made by the Tariff Commission to the President.

Comment:

It is not as yet certain that the conversations between the American and Japanese interests concerned have failed. In the event that they [Page 812] fail and it thus becomes necessary for action to be taken on the complaint laid before N. R. A., it is suggested that the Japanese proposal, that negotiations be held between the American and Japanese Governments, be referred to the Executive Committee on Economic Policy for decision as to the reply which should be made to the Japanese Embassy.

It is the opinion of the Far Eastern Division that it would be preferable to avoid arranging another “gentlemen’s agreement” similar to the agreements that have been reached with Japan with regard to lead pencils and cotton rugs, but if remedial action on tuna fish imports cannot await careful study of the entire question of our commercial relations with Japan, it is recommended that conversations be held with the Japanese Government before restrictive measures are applied.