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

740.00119 P.W./4–1246

Report by the State–War–Navy Coordinating Subcommittee for the Far East⁹⁶

undated

secret

Establishment of an Inter-Allied Reparations Committee for Japan

the problem

1. To implement the policy of the United States with regard to the organization and terms of reference of an inter-Allied reparations authority.

facts bearing on the problem

2. See Appendix “A”.⁹⁷

discussion

3. See Appendix “B”.⁹⁷

conclusions

4. Superseding the policy laid down in paragraphs 4(b) and 5(b) of SWNCC 236/4,⁹⁸ inter-Allied agreement should now be sought with the Far Eastern Commission for the organization of a Separations Committee for Japan under the terms elaborated under paragraphs 5 and 6 below.

5. The terms of reference of the Reparations Committee should be as follows:

a. Establishment

An Inter-Allied Reparations Committee for Japan composed of one representative each of the member governments of the Far Eastern Commission shall be established by the Commission. As a body administratively within the Commission, the Reparations Committee shall function under the terms of reference of the Commission, and employ its voting procedure, administrative machinery and Secretariat facilities.

b. Functions

(1) The following functions shall be delegated to the Reparations Committee by the Far Eastern Commission:

(a) To determine the categories, and the total amounts within those categories, of Japanese assets both within and outside Japan which shall be made available for payment of reparations, [as distinguished from restitution and war booty].⁹⁹

(b) To invite the presentation of reparations claims by countries which participated in the war against Japan or suffered from the effects of Japanese aggression, and to allocate percentages of the several categories of Japanese assets declared available for reparations to claimant countries on the basis of its own determination of

(i) categories of damage and cost, both direct and indirect;

(ii) the evaluation of total claims to be allowed within such categories;

(iii) the capacity of claimant countries to absorb and utilize Japanese assets claimed as reparations.

(iv) value of Japanese assets physically located within each claimant country.

(c) To consider such other related matters as may be assigned to it by the Far Eastern Commission.

(2) In the performance of these functions, the Reparations Committee shall operate within the framework of over-all occupation policies and objectives as determined by the Far Eastern Commission. In this respect the Commission shall retain the power to review the decisions of the Committee. Subject to this qualification, the Committee shall have the authority to make binding decisions within its area of competence. Such decisions requiring implementation in Japan shall be transmitted directly by the Committee through the Commission Secretariat to the United States Government for transmittal to the Supreme Commander for the Allied Powers.

(3) The Supreme Commander for the Allied Powers shall be responsible for all technical and administrative operations in Japan required to carry out the decisions of the Reparations Committee with respect to Japanese assets controllable in Japan. His responsibility shall include the designation of specific industrial plants and items of equipment for removal from Japan, in accordance with the decisions of the Committee as to over-all categories and amounts of such facilities to be removed. It shall also include the allocation of such facilities to claimant countries in accordance with the decisions of the Committee as to the respective shares allotted to such countries within each category of assets. In the event of a conflict of claims to a specific item of equipment by two or more countries the Supreme Commander may at his discretion refer the issue to the Far Eastern Commission for adjustment by the Reparations Committee.

6. In order to make known United States views with respect to the functioning of the Reparations Committee, the above terms of reference should be accompanied by a statement that when the Committee is established, the United States will

a. Propose that it should be the object of the Committee to complete the program of reparations from Japan not later than the end of the year 1947;

b. Assure that full cooperation will be afforded by the Supreme Commander for the Allied Powers to the Committee and its staff in undertaking such investigations in Japan as the Committee deems necessary, and that full opportunity will also be afforded by the Supreme Commander for inspection by representatives of claimant governments of industrial facilities declared available for removal from Japan, such inspection to take place under such auspices and terms as are mutually satisfactory to the Committee and the Supreme Commander.

c. Propose that the Committee be used where appropriate to aid in the implementation of a vigorous program for the seizure of Japanese external assets. Action already taken by the United Nations under economic warfare programs, in accordance with such international commitments as the Resolution of the Inter-American Conference of Foreign Ministers,¹ should be respected in such a program.

recommendations

7. It is recommended that:

a. This report be forwarded to the JCS for comment from a military point of view.

b. After approval by the SWNCC of the Conclusions in paragraphs 4–6 above:

(1) The report be transmitted to the JCS, to the State, War and Navy Departments and to the United States representative on the Far Eastern Commission for their guidance.

(2) The State Department be instructed to draft proposals embodying these conclusions to be submitted to the Far Eastern Commission.

96. Approved by SWNCC on April 11 as SWNCC 236/12; transmitted to the Department, to the War and Navy Departments, and to the Joint Chiefs of Staff on April 12, and by the Department of State to General McCoy on April 19 for his guidance on the Far Eastern Commission.
97. Not printed.
97. Not printed.
98. See footnote 65, p. 472.
99. Brackets appear in the file copy.
1. For resolutions of the Third Meeting of the Ministers of Foreign Affairs of the American Republics, which met at Rio de Janeiro in January 1942, see Department of State Bulletin, February 7, 1942, pp. 117–141. For documentation on the meeting, see Foreign Relations, 1942, vol. v, pp. 6 ff.