100 Stories1970 Japan-U.S. Textile Negotiations

Kagayaki Miyazaki once represented the Japanese textile industry in negotiations with the United States. These Japan-U.S. Textile Negotiations took place in 1969 on the occasion of the inauguration of Richard Nixon as President of the United States.

In his presidential campaign, Nixon had planned to discuss the issue of import restrictions on all textile products, including wool and synthetic fibers, with the countries concerned in order to secure the votes of the textile industry. Miyazaki, who was president of the Japan Chemical Fibers Association at the time, was in a position to represent the Japanese textile industry to the U.S., which had moved into action with Nixon's inauguration as president.

The first meeting between the ministers in charge of Japan and the U.S. broke down, partly due to a resolution in the Diet opposing import restrictions. However, a disturbing development was sensed at the Japan-U.S. summit meeting that took place six months later. This was a historic meeting that resulted in the restoration of Okinawa to Japan (in 1972), but the theory of a secret Japan-U.S. agreement that “sold the thread (textiles) and bought the ‘rope’ (a play on the Japanese characters used to write ‘Okinawa’)” became widespread.

Although the truth of this story remained unknown, the U.S. side proposed two rounds of strict regulations. Miyazaki worked hard to block the restrictions by forming the Japan Textile Federation and lobbying Diet members, eventually spending two months in the hospital due to overwork.

Nevertheless, the situation did not improve, and at another Japan-U.S. summit meeting, the textile issue became an official agenda item, and the two governments agreed to resume intergovernmental negotiations. In response, textile companies from all over the country gathered for a rally, and Miyazaki led the protest march wearing a hachimaki (a traditional Japanese headband).

At the time, however, the Japanese government felt that the U.S. side would withdraw the import restriction bill if the Japanese textile industry took the initiative, and the government also unofficially requested voluntary restraint in order to avoid any damage to the Japan-U.S. economic relationship. Miyazaki decided that self-imposed restrictions were unavoidable, and announced a proposal for self-imposed restrictions that fully incorporated the intentions of the U.S. side. The government also announced the termination of intergovernmental negotiations and decided to provide a total of 48.9 billion yen in relief measures. The Japan-U.S. textile negotiations seemed to have come to an end, but the situation suddenly changed.

President Nixon issued a statement saying, “Japan's self-imposed regulations are unacceptable.” The U.S., which had all of a sudden taken a hardline stance, issued an ultimatum: “If you do not agree to the intergovernmental agreement, the U.S. will unilaterally implement import restrictions.” The government gave up on the self-imposed restrictions and signed the intergovernmental agreement. The agreement was based on individual regulation for a period of three years, with a strict growth rate of 5% for synthetic fibers and 1% for wool. Thus, the Japan-U.S. textile negotiations reached an unintended conclusion.

However, the textile industry gained substantial benefits as a result. For one thing, the Japanese government provided the textile industry with a fund of about 180 billion yen. In addition to the 48.9 billion yen for the purchase of textiles, the textile industry was able to borrow more than 130 billion yen in low-interest funds, thus avoiding bankruptcy.

The other reason is that the three years of hard negotiations prevented a massive influx of cheap textile products from South Korea, Taiwan, and Hong Kong. The protracted Japan-U.S. textile negotiations also prolonged the conclusion of agreements between these regions and the United States, during which time South Korea, Taiwan, and Hong Kong were able to triple their exports to the United States.

Thus ended the Japan-U.S. textile negotiations, which were led by Miyazaki.

Miyazaki represented the industry in the negotiations, despite the fact that Toray, Teijin, and other front-runners at the time were also textile manufacturers. Miyazaki is widely known as the founder of Asahi Kasei, and this Japan-U.S. textile negotiation is one episode in his career.