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

740.00119 PW/5–746

Memorandum by Mr. Maurice B. Morgan, of the Division of Japanese and Korean Economic Affairs, to Mr. Robert W. Barnett, of the Same Division

[ Washington ,] May 7, 1946.

Subject: Statement on Compilation of U.S. Claim

Herewith, a statement in detail of the data, procedures and ideas that were involved in deriving the data necessary to present a U.S. claim for reparation from Japan under the criteria we have set up.²²

For purposes of comparability the German-Austria Division’s form of analysis and presentation were followed as far as possible. Modifications to suit the case of Japanese reparations and differences in criteria were made where necessary.

As our claim, its format and procedure for computation under each category, will probably be referred to as a model by interested countries, categories under which the U.S. can present no claim are presented with an explicit statement to that effect. The effect should be to indirectly call attention to those nations that do have such claims (e.g. “Costs of Occupation” while of no interest to us should have sizeable Philippine and Chinese claims) that the category is still carried for their benefit if not for our own.

Major questions are:

a. What date shall we start from, December 7, 1941 when the war actually began with Japan, or an earlier date on the basis that we had to start re-arming due to Japan’s belligerent actions?

b. Should we express money values in real prices i.e., after deflation for price rises, in the case of budgetary expenditures and mineral values, or give them in current prices?

[Annex]

Summation of U.S. Claim for Reparations From Japan

(Under criteria tentatively recommended by JK)

I. War Damage: (excluding military installations and equipment)

a.	U.S. citizens loss of property	$300,000,000
b.	Loss of cargo	110,000,000
c.	Loss of non-military vessels	121,000,000
d.	Loss of household and personal effects	2,000,000
e.	Loss of gold, silver, currency, deposits, etc.	15,000,000
f.	Loss of buildings not otherwise included	1,800,000
	Total	$549,800,000

II. Budgetary Expenditures Allocable to War Against Japan:

	Current dollars	$114,200,000,000
	1941 dollars	86,700,000,000

III. Costs of Japanese Occupation: None

IV. Man-years of Armed Forces: 16,753,000

V. Human Casualties:

a.	Killed and missing	110,000
b.	Wounded	214,000

VI. Depletion of Natural Resources:

a. Major Minerals

Metallic	Quantity (in millions)		Value (millions of $)	Percent of Original Reserves
Aluminum	1.0	short tons	280.0
Copper	1.4	short tons	350.0
Ferro Alloys	2.6	short tons	351.0
Iron Ore	138.0	long tons	940.0
Pig Iron	82.0	short tons	1,775.0
Non-Metallic
Cement	185.0	barrels	288.0
Coal (Bituminous and Anthracite)	2,277.0	short tons	2,500.0
			2,600.0
Petroleum	2,168.0	barrels
Other metallic and non-metallic minerals
Total value, January 1942–July 1945			$11,200.0

VII. Other Private and Governmental Claims:

22. “Preliminary estimate of United States claim”, with details, not printed, but see annex, below.