740.00119 PW/10–2246
Memorandum of Conversation, by the Acting Chief of the Division of Japanese Affairs (Borton)
| Participants: | Mr. Harold [Hubert] A. Graves—British Embassy |
| FE—Mr. Vincent | |
| JA—Mr. Borton |
Mr. Graves called at his request to present the attached notes31 on conversation concerning the possibility that a proposal may be made by the United States Member of the FEC on October 24 that a reparations conference be held outside the auspices of the Far Eastern Commission. Mr. Graves pointed out that the Foreign Office wishes [Page 584] to ascertain the American position on the repercussions of such action on other conferences and the effect on the authority of the FEC of a policy decision of a conference not under FEC auspices being implemented by directive to General MacArthur.
Mr. Graves was informed that the question of appropriate U.S. action in the event that the Soviets veto our proposed conference under the FEC, was under active consideration by the Secretary. He was also told that the U.S. Soviet negotiations to reach an understanding on the reparations question had broken down on the question of external assets and war booty, the Soviets insisting that their war trophies in Manchuria not be taken into consideration in the reparations settlement, a position which the United States was unable to accept. It was also explained to Mr. Graves that the members of the FEC would not be expected to vote on October 24 for an alternative plan but that they would be informed shortly thereafter of the action which this Government is contemplating.
Mr. Graves expressed appreciation for the information which he had received and stated that he was relieved to hear that we were not expecting to obtain definitive decision on an alternative at the FEC meeting on October 24.
- Not printed.↩