794.0221/8–1550
Memorandum by the Deputy Director of Mutual Defense Assistance (Ohly) to the Director of the Office of Military Assistance in the Department of Defense (Lemnitzer)
Subject: Possible Contribution by SCAP to MDAP in South and East Asia
Reference is made to my memorandum dated June 9, 1950, subject: Possible Contribution by SCAP to MDAP in South and East Asia.1
This memorandum listed certain foreign policy considerations which argued against the use of Japanese industry as a source of procurement of non-armament items to be transferred to eligible countries under the MDAP. Briefly summarized, these considerations were as follows:
- 1.
- Policy decisions adopted by the Far Eastern Commission, and
contained in
- a.
- Part IV, paragraph 1, of the Basic Post Surrender Policy for Japan, adopted June 19, 1947;
- b.
- Policy decision dated February 12, 1948, entitled “Prohibition of Military Activity in Japan and Disposition of Japanese Military Equipment”.
- 2.
- The desire of many, probably most, Japanese to observe strict neutrality.
- 3.
- The fears of the Philippines and possibly other East Asian recipients of MDAP of revived Japanese militarism, and the fact that these countries regard Japanese equipment as second rate, especially in reference to comparable United States products.
My memorandum also stated that, “if there are specific projects which would appear not to be subject to the foregoing objections, the Department would give sympathetic consideration thereto with the view to finding a basis for approval”.
The Department of State has kept this problem under examination and has determined that such projects as the procurement in Japan for the MDAP (1) of trucks, motorcycles, radios and other normal peace-time goods, or (2) of such services as the utilization of Japanese [Page 1276] facilities in the repair of ships or airplanes, would not seem to be precluded by the legal or policy objections previously mentioned.
- Not printed.↩