Office of the Historian

740.00119 Control (Japan)/8–246

Memorandum by the Assistant Secretary of State for Occupied Areas (Hilldring) to the United States Member of the Far Eastern Commission (McCoy)

secret
Washington, August 6, 1946.

In accordance with instructions of August 2 from the State–War–Navy Coordinating Committee,94 there is enclosed a statement of United States policy regarding the Conversion of Japanese Currency Held By Other Governments and Forces, comprising the substance of paragraphs 4a and 4b of the Conclusions of SWNCC 259/8, which was approved by the State–War–Navy Coordinating Committee on July 31, 1946.

The United States Member, Far Eastern Commission, is requested to present the United States views on the Conversion of Japanese Currency Held By Other Governments and Forces to the Far Eastern Commission with a view to obtaining from the Commission a policy decision on the subject.

J. H. Hilldring
[Annex]

Statement of United States Policy Regarding Conversion of Japanese Currency Held by Other Governments and Forces

It is concluded that:

The United States is opposed to conversion of yen held by:

(1)
other governments and forces,
(2)
Japanese banks for the U.S. Military Government in Korea,
(3)
private individuals where the currency in question is held outside of Japan.

The question of conversion of yen of types listed in the above paragraph should be considered in connection with reparations and Japanese external assets.

  1. SWN–4643, not printed↩