740.00119 P.W./11–2746
Memorandum by Mr. Robert W. Barnett, Special Assistant for SWNCC Affairs, Division of Japanese and Korean Economic Affairs
Washington, 27 November 1946.
Subject: Advance Transfers Paper
- 1.
- Attached is a further revision of the Advance Transfer paper.48 As before, this paper shows the SWNCC language amended, with appropriate underlining, etc., to bring the SWNCC paper in line with the intent of Mr. Byrnes’ memorandum which has underlain General Hilldring’s conversations with the 10 other member countries of the Far Eastern Commission.
- 2.
- You will note:
- a.
- China, the Philippines, the Netherlands and the U.K. are specifically designated as beneficiaries in the advance transfer program;
- b.
- The Chinese percentage has been raised from 5 to 15%;
- c.
- The total percentage removable under advance transfers has been raised from 15 to 30%;
- d.
- Advance transfer removals must not result in “disproportional” reduction of quality or value of residual industrial capacity;
- e.
- The recommendation calls for issuance of the conclusions as an interim directive.
- 3.
- I hope you will offer me your initial comments on this revised version of the SWNCC paper at your earliest convenience.49 General Hilldring will want to be advised on what the United States Government is prepared to do when the returns are all in from his ten-country negotiations on the reparations problem as a whole.
Robert W. Barnett