(a) Officials of the Department of Commerce and Industry would
 welcome discussions with the special representatives of the oil com-
 panies and he (Kurusu) believed that such discussions would be useful
 and well worth while.
   (b) Foreign oil refineries, if established in Japan, would participate
 in the growth of demand on equal footing with Japanese refineries.
   (c) Although adhering to the policy of developing the Japanese
 re fng industry, a part of the natural increase in demand will be
 allotted to the foreign importers of refined products.
   (d) As the Japanese oil companies are unable to comply with the
stock-holding provisions of the law because of lack of funds, some
adjustment of the provisions will be necessary.
   2. The local manager of Standard-Vacuum has, therefore, tele-
graphed to his special representatives in Shanghai to proceed to
Japan. It is expected that the discussions between the special repre-
sentatives and the Japanese officials will start about January 7.
  3. British Embassy and British oil interests are following identical
procedure.
                                                            GREW

TRADE RELATIONS BETWEEN THE UNITED STATES AND JAPAN;
  VOLUNTARY RESTRICTION OF EXPORTS TO THE UNITED STATES
  BY THE JAPANESE
611.006 Fish/11
Memorandum by the Assistant Chief of the Division of Far Eastern
                         Affairs (Fuller)

                                [WASHINGTON,] December 13, 1933.
Conversation: The Japanese Charge d'Affaires, Mr. Toshihiko
                  Taketomi
              Assistant Secretary Sayre
              Mr. Fuller.
  Mr. Taketomi called to pay his respects to Assistant Secretary
Sayre. In the course of the conversation he stated that he had seen
in the newspapers that Mr. Sayre was a member of some Government
committee which was to take up the question, as he understood it,
of restricting and controlling imports into the United States. Mr.
Sayre explained the nature of the interdepartmental committee which
is to consider the question of developing American foreign trade and
also outlined plans in regard to reciprocal trade treaties.
  Mr. Taketomi then said that he had seen in the newspapers reports
to the effect that various American manufacturers and producers were
anxious to have measures taken to restrict or to place on a quota im-
ports of various commodities from Japan. He mentioned particu-
larly tuna fish and lead pencils, which he said were not of great im-
portance so far as volume of trade was concerned. He mentioned his



JAPAN



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