694.0031/7–246: Circular airgram
The Acting Secretary of State to American Diplomatic and Consular Officers
This Government’s policy concerning the trade of third countries with Japan during the present period is summarized herein for the information of the Foreign Service and as a guide for replies to inquiries which may be received by diplomatic and consular offices.
Plans for the general control of Japanese trade were described in the Department’s Radio Bulletin No. 53, dated March 2, 1946. As stated therein, direct trading relations between the Japanese and private firms in other countries, including the United States, is prohibited at the present time.
The Supreme Commander for the Allied Powers is responsible for ascertaining Japan’s import requirements and the types of products available for export. His recommendations are submitted to Washington for review in as much as certain commodities, such as export items in short world supply or import items originating in countries where special export controls exist, involve policy which must be determined on a governmental and sometimes intergovernmental basis. Appropriate Washington authorities, acting upon the recommendations submitted by the SCAP, make final determination of the export and import programs. The programs for 1946 have been approved and distributed to all members of the Far Eastern Commission.
Special problems are raised in handling goods in critically short world supply and goods of which there are important surpluses. The guidance of international allocating committees and of the Far Eastern Commission is sought on such commodities. Subject to the obvious limitations imposed by Japan’s status as an occupied country and by trade controls currently existing in many countries, every effort is made to conform to American commercial policy and to established trade practice.
Responsibility for procuring approved imports for Japan rests with the United States War Department and SCAP. Purchases are made by the Office of the Quartermaster General, either through its [Page 265] field offices overseas or by its headquarters in the United States, or by SCAP.
Exports from Japan are handled by duly authorized purchasing agencies of interested governments. All exports to the United States are sold by the United States Commercial Company. It is probable that on request of the country concerned or of the SCAP, the services of the USCC will be available for handling shipments to other countries.
Private firms or persons in any given country desiring to purchase Japanese goods may initiate inquiries or negotiations as follows:
- (1)
- In a country whose government has designated an official purchasing agency for the procurement of Japanese products, by communicating with that agency;
- (2)
- In a country lacking such a purchasing agency, by communicating with the USCC in Tokyo (through their own government’s liaison mission accredited to the SCAP) or in Washington (through their regular consular or diplomatic offices).
As stated in the aforementioned radio bulletin, current policy is to import into Japan only essential commodities required to prevent disease and unrest and accomplish the objectives of the occupation and, as far as possible, to use the proceeds from selected exports as payment for imports. Purchasers of Japanese exports are required to pay in foreign currencies usable for procuring necessary imports or must agree to provide needed imports in exchange.