611B.9417/24
Memorandum by Mr. Eugene H. Dooman of the Division of Far Eastern Affairs of a Conversation With the Counselor of the Japanese Embassy (Fujii)
After lunch at the Japanese Embassy today, Mr. Fujii asked whether he could call on me this afternoon at the Department. I suggested that [Page 959] we take advantage of the opportunity to discuss whatever it was that Mr. Fujii had in mind.
Mr. Fujii said that the Embassy had received a very brief reply from the Foreign Office at Tokyo in regard to the matter of regulating exports of Japanese cotton textiles to the Philippine Islands. The reply ran substantially as follows:
In view of Japan’s large unfavorable balance of trade with the United States and of the various measures taken by the United States to restrict imports into the United States of Japanese goods, it would be very “difficult” for the Japanese Government to control exports of cotton textiles from Japan to the Philippine Islands.
Mr. Fujii then asked me to explain the circumstances that had brought about the suggestion that imports of Japanese textiles into the Philippine Islands be restricted. I told Mr. Fujii that the matter was not a new one; that it had arisen last year, when there had been a marked increase of textile imports from Japan; that the Philippine Government was disposed to place a heavy duty on cotton textiles; but that this Government had suggested to the Philippine Government that no action in that regard be taken until an opportunity could be had to adjust the problem by friendly discussion between the American and Japanese Governments. I added that if the Japanese Government were unable to enter into such discussions, there was very little that the American Government could do if there should be revived a demand in the Philippine Islands for increased duty on Japanese textiles.
Mr. Fujii then remarked that the Embassy had been instructed to ascertain whether the American Government could, in the event of some arrangement being concluded with the Japanese Government, control American exports of cotton textiles to the Philippines. I replied that I did not believe any difficulty would arise in that regard, as the Philippine customs authorities would presumably keep account of the volume of imports from the various countries.
Mr. Fujii then asked whether the American Government had in mind any specific figures. I replied that no decision had been reached as to figures, but that we had thought that if agreement could be reached in regard to the principle that the Philippine market might be shared on some basis which would take into account the interests of both sides in that market, no difficulty would be encountered in regard to agreeing on some satisfactory figure.
Mr. Fujii then stated that the Embassy would telegraph the Foreign Office today and that he would get into touch with me as soon as further instructions were received.
[Page 960]I asked Mr. Fujii whether any reply had been received in regard to sun goggles. Mr. Fujii stated that the reply received from the Foreign Office made no reference to sun goggles.