740.00119 PW/6–2146
Directive by the Joint Chiefs of Staff to General of the Army Douglas MacArthur, at Tokyo63
The following directive, prepared by the State Department to implement the policy adopted by the Far Eastern Commission on 12 June 1946 under the provisions of Paragraph II, A, 1, of its terms of reference, has been received from the State, War and Navy Departments for transmission to you for guidance in accordance with Paragraph III, 1, of those terms of reference:
Directive Regarding Interim Reparations Removals: Iron and Steel Industry; Thermal Electric Power; Soda Ash, Chlorine, and Caustic Soda Industry.
1. Iron and Steel Industry
(Definition: “Plants and establishments primarily engaged in the production of pig iron or steel ingot.”)
- a.
- That portion of Japan’s capacity for the production of steel ingot that is in excess of 3.5 million metric tons annually will be made available immediately for claim. In selecting plants for removal first [Page 539] consideration will be given to electric furnace capacity, which will be reduced to an aggregate of 100,000 metric tons annual capacity made up as far as possible of furnaces of individual charge capacity of 1½ tons or less. No Bessemer steel capacity will be removed.
- b.
- That portion of Japan’s capacity for the production of pig iron that is in excess of 2.0 million metric tons annually will be made available immediately for claim.
Plants and establishments engaged in the process of rolling will be treated in a supplementary paper.
2. Thermal Electric Power
(Definition: “Plants and establishments primarily engaged in the production of electric energy through the use of fuel (coal) as the basic energy source.”)
- a.
- That portion of Japan’s thermal electric generating capacity that
is in excess of her requirements after the reduction of her
industrial capacity in accordance with the remainder of this program
(tentatively estimated at capacity in excess of 2.1 million kw.)
will be made available for claim subject to the following
limitations:
- (1)
- In undertaking removals giving effect to this program, you will give special attention to the interrelation of hydro and thermal electric capacities, and will retain facilities, including stand-by equipment, necessary to ensure at all seasons the distribution of sufficient electric power to satisfy demands as they may be manifested in each supply area after completion of the other phases of the interim program.
- (2)
- If, in the course of effecting these removals, you should find that thermal electric capacity reduced to 2.1 million kw. will not be adequate to meet Japan’s requirements as modified by the reduced industrial demand consequent upon completion of the other phases of the interim program, you will so advise the Far Eastern Commission and will state to what total capacity Japan’s thermal electric generating plants can be reduced without violating the considerations set out in (1) above.
3. Soda Ash, Chlorine, and Caustic Soda Industry
(Definition: “Plants and establishments primarily engaged in the production of soda ash (sodium carbonate), chlorine, and caustic soda (sodium hydroxide).”)
- a.
- That portion of Japan’s capacity for the production of chlorine and caustic soda in electrolytic plants which is in excess of about 75,000 metric tons of chlorine and about 82,500 metric tons of caustic soda, will be made available for claim.
- b.
- That portion of Japan’s capacity for the production of soda ash that is in excess of 630,000 metric tons, will be made available for claim. Removal of this excess soda ash capacity will be accomplished by seizure of one large modern soda ash plant, together with its integrated facilities for conversion of soda ash to caustic soda.”
- Copy transmitted to the Department by SWNCC with its SWN–4443, June 21, and by the Department to the Far Eastern Commission on June 24.↩