Foreign Relations of the United States Diplomatic Papers, 1938, The Far East, Volume IV

393.115/169

President Roosevelt to the Secretary of State³⁴

Washington, January 28, 1938.

The January 26th dispatch from Gauss, No. 142,³⁵ and similar dispatches relating to looting of American-owned property in China is bringing to a head the question of indemnities for lost property.

Under no circumstances can the major part of the looting be called a necessary result of armed conflict. The buildings were not destroyed by usual fire, by bombs, nor were the buildings or property to which I refer destroyed or damaged as a necessary part of military operations either offensive or defensive.

If you have not already begun to do so, I think we should start to lay the foundation for holding Japan accountable in dollars for the acts of her soldiers. Perhaps we should not suggest it until after our case has been firmly established but it is a fact that there is a vast amount of Japanese owned property in the United States and that we have excellent precedent in the Alien Property Custodian Act³⁶ for holding this property in escrow. Enough said!

F[ranklin] D. R[oosevelt]

34. Notation on the original by the Secretary instructed the Legal Adviser, Hack-worth, to consult the Division of Far Eastern Affairs “and act.”
35. Supra.
36. “Trading with the Enemy Act,” approved October 6, 1917; 40 Stat. 411.