694.0031/9–1346
The Department of State to the Soviet Embassy
Memorandum
The Department of State refers the Soviet Embassy to the discussion of Allied Trade Representatives in Japan held with the Representative of the Union of Soviet Socialist Republics, which took place at the 25th Meeting of Committee no. 2, Economic and Financial [Page 314] Affairs on September 5, 1946. The Department regrets what appears to be a misunderstanding concerning the procedure whereby functions of these Trade Representatives was determined.
The Department of State, on April 25, 1946, circulated for the information of Committee no. 2 its exchange of views with the Supreme Commander for the Allied Powers concerning the functions of Allied Trade Representatives in Japan (C2–001/3). Subcommittee no. 1 of Committee no. 2 discussed the proposals of the Supreme Commander, and it was the consensus of the Subcommittee that the Supreme Commander’s proposals would be more acceptable to their governments if somewhat modified. The United States Government, accordingly, communicated informally the proposed modifications to the Supreme Commander. The text of the communication was circulated to Committee no. 2 as C2–001/6. In its meeting on June 26, 1946 the Committee discussed the matter briefly and did not question the method by which the matter was being handled.
The Supreme Commander’s reply to the United States Government was circulated to Committee no. 2 on July 30, 1946. This document was discussed at the 21st Meeting of the Committee on August 13. It was the opinion of the Committee, and the understanding of the United States Government, that no further action was required by the Far Eastern Commission and that all that remained to be done was for individual governments to take steps to have Trade Representatives appointed. The Committee asked that the United States Representative formally record the Supreme Commander’s statement as a Commission document, indicating the method whereby Trade Representatives would be appointed. The United States Government complied with the request of the Committee by circulating FEC 088 for the information of the Commission. It appears, therefore, that in order to be consistent with the manner in which the whole question had been handled since its introduction on April 25, C2–001/8 should have been circulated for the information rather than for the consideration of the Committee.
In reply to the question raised by the Soviet Delegate in the 25th Meeting of the Commission concerning the responsibility for determining the functions of Trade Representatives in Japan, the United States Government’s view is that this is a matter of administrative implementation of general trade policy, for decision by the Supreme Commander for the Allied Powers. The function of the United States Government has been to facilitate communication between the Supreme Commander and the governments which might wish to cooperate in the appointment of Trade Representatives.
The Department trusts that the above explanation will answer the questions raised by the Soviet Representative.