740.00119 PW/10–446

The State–War–Navy Coordinating Committee to the Secretary of State

SWN–4800

Subject: Delivery of Reparations Goods in Japan

References: a. SWNCC 236/20
b. SWNCC 236/25
c. SWNCC 236/27

Enclosed herewith is a copy of SWNCC 236/27, a revision of reference a as amended by reference b and approved by the State–War–Navy Coordinating Committee on 3 October 1946.

It is requested that the statement of the U.S. position in the Appendix be forwarded by the State Department to the U.S. Member of the Far Eastern Commission.22

For the State–War–Navy Coordinating Committee:
Ernest A. Gross

for
J. H. Hilldring

Chairman
[Annex]

Statement of U S Policy Regarding Delivery of Reparations Goods in Japan23

1.
In delivering reparations goods to claimant countries, the Japanese Government should bear all costs connected with dismantling, [Page 578] packing, transporting to a port in Japan for waterborne craft or for airborne craft designated by the Supreme Commander for the Allied Powers, handling, and loading on board the craft at that port. None of these costs should be charged to the recipient country’s reparations account.
2.
The goods in question should become the property of the recipient country when they have been delivered on board at the designated port and, thereafter, they become the entire responsibility of such recipient country. The goods in question should be charged to the reparations account of the recipient country not later than the time at which they have been delivered on board at the designated port.
3.
When particular reparations goods have been designated for application to the reparations account of a particular country, the Supreme Commander for the Allied Powers may, before proceeding with the removal of such goods from their location at the time of such designation, require that country to provide him with a written undertaking to accept such goods in accordance with the provisions of this paper, provided they are delivered on board at the designated port free from any major damage sustained in processes of dismantling, transportation, and loading.
4.
a. Each claimant nation will be responsible for furnishing the waterborne or airborne craft necessary to transport its reparations goods from the designated port in Japan.
b. In accordance with the provisions of this paper, each claimant nation will furnish transportation for its reparations goods at the port and will be prepared to accept transfer of title no later than two years after the designation of the goods for application to that country’s reparations account, provided that such goods have been delivered to the loading point at the port within that period. Otherwise, the goods will revert to SCAP for allocation to another claimant or for disposition under the provisions of other directives.
c. For purposes of developing priorities and schedules for dismantling operations and removal of reparations goods to the port, each claimant nation will notify SCAP of the order desired for receiving its respective reparations goods and the prospective availability of shipping to move these goods from the port. Firm schedules for dismantling operations, removal to the port, and loading on board recipient’s craft will be determined by the Supreme Commander for the Allied Powers in agreement with the representatives of the recipient country.
  1. This was clone October 11, with a view to obtaining a policy decision on the subject.
  2. SWNCC 236/27, approved October 3.