894.85/8–2246
Memorandum by the Chief of the Division of Japanese and Korean Economic Affairs (Martin) to the Director of the Office of Far Eastern Affairs (Vincent)
Subject: British Views on Reparations from Japanese Ships
In accordance with my telephone conversation with John Emmerson, I attach for initialing an Aide-Mémoire98 in reply to that of August 12 left by Mr. Graves of the British Embassy99 on the subject of disposition of Japanese merchant and fishing fleets.
On the further point raised by Mr. Graves in his conversation with you and recorded in your memorandum of conversation of August 12, [Page 564] I don’t think that the U.S. Government is at present disposed to concur in the British suggestion that in settling claims for Japanese ships “one could not separate losses incurred in Europe and in the Far East.”
Mr. Graves’ statement that the British had concurred in this position at the request of the American Government with respect to the German fleet and as a result secured fewer German vessels requires some modification. The final action in this matter was taken in IARA in Brussels. At the meeting of the IARA Assembly on April 11, at which this decision was made, the following U.S. reservation was put into the record and unanimously approved by the Assembly. “The inclusion of tonnage lost in the Japanese war in the calculation of German reparation shares of merchant ships is accepted only upon the understanding that it is without prejudice to and shall not be considered as in any way affecting the determination of shares of any Japanese reparations. No distinction between losses in the German and Japanese wars has been made because of the practical difficulties of accomplishing such a separation.” This reservation was made on instruction from the Department and drafted in part by JK. I have the cable reference if you are interested in studying the matter further.