JAPANESE CLOTH

Nelson Evening Mail, Volume LXX, 25 May 1936, Page 6

JAPANESE CLOTH

SNCREASED TARIFF RATES IN U.S.A. FAILURE 'OF “GENTLEMEN’S AGREEMENT” (United Press Association—By Electric Telegraph—Copyright) WASHINGTON, 21st May. Complete collapse of protracted negotiations with Japan to effect a “gentlemen's agreement” regarding imports of her cloth was indicated today, when President Roosevelt proclaimed a 42 per cent, increase in tariff rates on bleached, printed, dyed and coloured cotton cloths, to be effective on 20th June. The proclamation was issued under the Tariff Act of 1930, which allows up to 50 per cent, increase on the recommendation of the Tariff Commission. The increase covers some 58 per cent, of cloth imported into America and about 90 per cent, of cloth from Japan. The ruling of course, is unilateral, but is obviously directed against Japan, President Roosevelt indicating that, while tariff increases were contrary to the Administration’s policy, the menace to the American textile industry could not be averted through diplomatic procedure. Whether the move will start a Japanese-American trade war is uncertain, with the Administration making no comment. It is pointed out, however, that the negotiations were amicable, Japan explaining that she was unable to control certain mechanical details of export necessary to give substance to a gentlemen’s agreement.