611.94/2–1352: Telegram
No. 521
The Acting Secretary
of State to the United States Political Adviser to
SCAP (Sebald)1
niact
2213. For Rusk. This is State–Treas–Defense msg but not finally cleared by Defense. Will advise as soon as final clearance recd. Urtels 1660 (CX 63235, Rusk 17),2 1664 (CX 63288, Rusk 18).3 No [Page 1180] objection redraft Art 23 proposed in Rusk 18 except as indicated below:
- 1.
- Re redraft Art 23 (as quoted in Rusk 17):
New para 2 (a).
Change phrases “facilities and areas” to read “facilities areas and rights of way”.
Believe it important to include phrase “and the furnishings, equipment and fixtures in use by US on effective date of this agreement”, unless this is definitely established by ref to Art II.
New para 2 (b).
To preclude possible use of 155 million dols for expenses not contemplated by US (such as real estate procurement) believe wording “for purpose of procurement by the US of supplies, transportation, and other services in Jap” shld be substituted for phrase “expenses of this agreement.”
Time of determination of conversion rate shld be clearly stated to prevent possible misunderstandings. If date of payment objectionable, consider most favorable rate during preceding calendar month up to and including date of payment.
Words “at option of US” or equivalent shld be retained to prevent ambiguity.
Instead of “or used in any Jap Govt transaction with any party” prefer language along lines “or used in any transaction with any party by the Jap Govt or its agencies or by Jap banks authorized to deal in fon exchange.” Narrower language has involved difficulties in other US agreements.
- 2.
- If para 6 of orig draft Art 23 is deleted, important to incorporate substance in official record to avoid implication that US share will necessarily be financed entirely with dols.
- Drafted in the Office of Northeast Asian Affairs by Hemmendinger; approved for transmission by McClurkin; and repeated for information to Defense.↩
- Document 504.↩
- Document 506.↩