83. Telegram From the Department of State to the Embassy in Japan0

548. Based on uncleared memorandum of conversation.1 In first of courtesy calls Japanese Trade Delegation2 today raised question with Assistant Secy Mann of new textile export quota suggesting, in view increased U. S. demand due growing population and more prosperous [Page 185] U.S. textile industry, 10% increase in quotas especially made up goods. Mann emphasized higher trade volume should be sought in non-sensitive items and inquired as to capacity of Japanese cotton textile producers to shift from sensitive to non-sensitive products.

Mann also solicited Japanese views on growing volume uncontrolled Hong Kong exports which threaten success of Japan’s export restraints. Japanese expressed worry about both Hong Kong exports to U.S. and Chinese Communist competition in SEA.

In brief press conference following meeting Japanese stated (1) mission seeking ways of narrowing gap in U.S.-Japan trade, (2) conversation with Mann touched on no substantive issues, (3) prospective increases in trade visualized in unnamed sundry goods, (4) mission wished to promote orderly marketing but recommended against general spread voluntary control system (5) noted pressure in Japan for trade with China strong but not critical and (6) Japan would not recognize Commie China as price for renewed trade.

Dulles
  1. Source: Department of State, Central Files, 411.9441/10–1058. Limited Official Use. Drafted by Gleeck, cleared by Parsons, and initialed for the Secretary by Mann.
  2. Not printed. (Ibid.)
  3. Comprising 11 Japanese businessmen and 2 Japanese Government officials, the Japanese Trade Mission arrived in Washington to begin a 6-week tour of the United States on October 9. The Mission held consultations in Washington October 10–15. Memoranda of conversations on the 14th GATT and textile matters, Japanese-U.S. trade relations, and Japanese-Chinese Communist trade relations, held at the Department of State on October 15, are ibid., 411.9441/10–1558.