694.0031/6–846
The Department of State to the British Embassy
Aide-Mémoire
The Government of the United States welcomes the comments on the Japanese import and export programs presented in the British Government’s aide-mémoire No. 362 of June 8, 1946, 145/104/46.28
The views expressed by the British Government concerning the foreign trade programs for Japan will be given continuing study. In the meanwhile the United States Government wishes to make several comments, of which the first two are general in nature and the succeeding ones specific.
General Comments:
1. Owing to a variety of circumstances—ranging from the disrupted state of industrial production and transport in Japan to the lack of final policy determinations by the Allied Powers on a number of points—the import program drawn up by SCAP several months ago and submitted in January was necessarily only an approximate and somewhat tentative estimate of requirements for the year. A similar observation may be made on the export program.
2. The United States Government concedes that trading relations between Japan and countries (including the British Commonwealth) other than the United States have not developed as rapidly as would be desirable. A number of factors have operated to retard this development, among which might be mentioned the failure to solve the problems involved in establishment of Governmental trade representation in Tokyo, and the lack of final working arrangements concerning methods of settlement and currency conversion.
Specific Comments:
3 a, b, c. The United States Government agrees that other cotton-producing countries which formerly sold cotton to Japan and which are able to meet the general conditions for trade with Japan during the period, should be taken into account. This Government has placed the question of the determination of the sources of Japanese imports before the appropriate Committee of the Far Eastern Commission. With respect to salt and other commodities which are neither in critically short world supply nor are complicated by the existence of [Page 259] large surpluses, it is anticipated that purchases by the Supreme Commander will be guided in a large part by considerations of price and means of payment. As noted, inquiries have already been made by the Supreme Commander in British Africa.
d. The Government of the United States concurs in the desire that procurement of nicotine sulphate and derris root for Japan will not operate to the detriment of the United Nations. Japan’s requirements stated in the import program will be carefully screened with the needs of other areas in mind.
3 e; 4 e, f. This Government is endeavoring to secure additional information concerning the exact descriptions of commodities listed on the Japanese export program and will expect to make the information so received available to all interested governments. In the case of specific commodities in which the British Government may have a particular current interest, it is suggested that the British Government may wish to make direct inquiry in Tokyo through its liaison mission accredited to the General Headquarters for the Supreme Commander for the Allied Powers.
4 a. There is much merit in the suggestion that raw wool should be included in the import program for the purpose of supplying material for the manufacture of woolen textiles for export. This possibility has been discussed with representatives of the Australian Government and is being submitted to the Supreme Commander for comment.
4 b, c, d. The British Government’s observations concerning the inclusion of pig iron and manganese ore in the import program are noted. Further comment on these stated requirements will be reserved until additional information is received from the theater. Further information will also be sought concerning the certification of textile machinery for export.
- Not printed.↩