740.00119 PW/9–1846
The Under Secretary of State for Economic Affairs (Clayton) to Ambassador Edwin W. Pauley
My Dear Mr. Pauley: I regret the misunderstanding described in your letter of September 18 with respect to the clearance through the State–War–Navy Coordinating Committee of your Comprehensive Report on Reparations from Japan. I wish to confirm the statements made to Mr. Bennett of your staff by Mr. Gross of the Office of the Assistant Secretary for Occupied Areas Affairs and Mr. Martin of the Division of Japanese and Korean Economic Affairs that no question of substance is involved but only problems of format and procedure.
Although considered in a series of papers on various subjects rather than in one over-all document, I think you will find all your recommendations have been or are scheduled to be covered in SWNCC papers. I enclose with this letter a summary24 of the status of action by the State–War–Navy Coordinating Committee and the Far Eastern Commission on papers covering the various subjects concerning which policy recommendations are made in your report. Although, as you will note, final SWNCC action has not been completed on a number of these papers, I feel sure that in due course all your recommendations will have been acted on by SWNCC. Except where the contrary may have been specifically indicated in this attachment the State Department has in each case supported the policies proposed in your report. Of course, since concurrence of the War and Navy Departments, of the JCS, and usually of SCAP is necessary to final SWNCC action, the State Department can give no assurances as to amendments which may be voted into these papers before final approval.
In order to insure that proper attention has been given to the interrelations among the various policy issues centering in the reparations program, the State Department has requested the SWNCC to review these papers from this standpoint, particularly in the light of the integrated viewpoint contained in your report, and make such amendments as may be suggested by this review. A copy of this document is also enclosed.
In your letter and in subsequent discussions with Mr. Bennett our attention has been called to a few points on which, in the course of negotiations [Page 580] in this Government and with other governments, the intent of recommendations in your report has been unintentionally obscured. I wish to assure you that insofar as the matter is within the power of the State Department, steps will be taken to make the revisions necessary to insure clarity in carrying out those policies on which we have agreed.
I hope that the information supplied with this letter will provide you the necessary basis for submitting your report to the President.
Sincerely yours,