894.50/3–347: Telegram
The Secretary of State to the Acting Political Adviser in Japan (Bishop)
70. FEC 10. Short period controls over Japanese economy to relieve world shortages. FEC Feb. 27 adopted above policy paper,48 requiring encouragement of Japanese production consumption goods needed by victims Japanese aggression and further requiring restriction consumption of such goods, particularly textiles, by Japanese to minimum requirements. Paper originally introduced into FEC by British who urgently need consumption goods for their Asiatic dependencies.
Advance Transfers of Reparations. During past week U.S. policy officially supported by Netherlands, Philippines and New Zealand (latter subject to Cabinet confirmation). Philippines approved policy provided no substantial amendments are made. New Zealand stated policy should be approved roughly as stands and no other countries should be added as beneficiaries. Now have six countries approving policy and three opposed. USSR and UK governments yet to be heard from. Several approving countries have emphasized need for some Allied body in Japan to watch interests of claimant countries which are not beneficiaries under advance transfers program.
- For text, see Activities of the Far Eastern Commission, p. 90. The directive was sent as serial 70, March 5, to SCAP by the Joint Chiefs of Staff and to the Far Eastern Commission on March 19 by General Hilldring.↩