Foreign Relations of the United States, 1946, The Far East, Volume VIII

694.0031/4–546

Statement of United States Policy⁵⁸

April 12, 1946

confidential

A Proposal for an Inter-Allied Trade Committee for Japan

1. The United States Government will request each of the Governments represented on the Far Eastern Commission to appoint a representative to an Inter-Allied Trade Committee for Japan.

2. The purpose of the Committee is to facilitate the conduct of relations between the U.S. Government and the other Governments concerned regarding the disposition of exports available from Japan and the furnishing of imports required for Japan which are beyond the scope of SCAP’s own authority to arrange.

3. Within the framework of general policies established by the Far Eastern Commission and the policies and procedures established by directives issued to the Supreme Commander for the Allied Powers by the Joint Chiefs of Staff, the functions of the Inter-Allied Trade Committee will be to advise the United States Government on:

a. The disposition of commodities available for export from Japan.

b. The origin of commodities for import into Japan.

c. The best arrangements for facilitating Japanese imports and exports generally.

4. The Committee will meet in Washington, D. C.

exports

5. In the case of commodities which are in short world supply and which are subject to allocation by the Combined Boards or similar committees and their successors (hereinafter referred to as the Allocating Authorities), the Committee shall, before advising the U. S. Government as to the disposition of an exportable supply of such a commodity, ascertain the views of the Allocating Authorities responsible for its allocation. The Committee shall recommend to the U.S. Government that the commodity in question shall be disposed of in accordance with the allocation recommended by the Allocating Authorities unless presented with evidence which shows that there are strong grounds for making a different allocation of the commodity in question in order to carry out the objectives of the Allied occupation of Japan. If, on such grounds, the Committee does not agree with the allocation recommended by the Allocating Authorities, it shall present its views to the Allocating Authorities and endeavor by consultation to reach an agreed allocation of the commodity in question. Failing agreement with the Allocating Authorities the Committee shall make such recommendation as it thinks fit to the U. S. Government.

6. The Governments which agreed to set up the Inter-Allied Trade Committee and participate in its work shall also agree to recommend to the Allocating Authorities that, when the allocation of a commodity available for export from Japan is referred to the Allocating Authorities responsible for such allocation, and is under consideration by such Allocating Authorities they shall admit to their deliberations representatives of any of the States which are members of the Inter-Allied Trade Committee but are not represented on such Allocating Authorities and which may express an interest, and shall hear their views on the allocation of the commodity in question.

7. In considering the disposition of other commodities which may be made available for export from Japan, the Committee shall consider any evidence or arguments which may be presented to it by its members and shall either recommend that the commodity be disposed of at the discretion of the SCAP or his agents or shall recommend an allocation of the commodity which in its opinion, shall further the objectives of the Allied Powers with respect to Japan as stated in the Potsdam Declaration and in declarations of policy agreed to by the states represented on the Committee.

imports

8. It shall be the responsibility of the Committee to assist in furthering the announced objective of the occupation by advising as to sources of required imports, and as to terms of purchase which will minimize the cost of procurement. However, action of Allocating Authorities for imports subject to allocation will not be subject to review by the Committee.

9. In considering procurement of other commodities which are required by Japan, the Committee shall either (a) decide that the commodity can be acquired at the discretion of the authorities making the purchase or (b) shall recommend the source of the commodity in such manner as, in its opinion, shall further the announced objectives of the Allied Powers with respect to Japan and provide for effective utilization and equitable distribution of the world supply.

58. Transmitted by the Department on April 12, 1946, to the U. S. representative on the Far Eastern Commission (General McCoy), in accordance with instructions of April 5, 1946, from SWNCC, for submittal to the Commission.