740.00119 PW/12–646: Circular airgram
The Acting Secretary of State to Certain Chiefs of Mission53
US Proposals re Japanese Reparations
In separate conversations designed to obtain the widest possible agreement to US reparations proposals, a memorandum was handed the representative of each member state of the Far Eastern Commission. The text of the memorandum is as follows:
“The failure to settle basic reparations questions prevents the stabilization of the Japanese economy at peacetime levels, impedes the occupation of Japan, increases the burdens of the American taxpayer, and prevents potential recipients of Japanese industrial equipment from reconstituting their own economies, while valuable industrial assets continue to deteriorate. The failure of the Far Eastern Commission to agree to sponsor the holding of a reparations conference makes it imperative to settle the question in some other way consistent with the Terms of Reference of the Far Eastern Commission. Consequently, the United States Government is considering taking the steps outlined below:
The issuance by the United States Government of suitable interim directives on reparations, determining levels of industry, making allocations of shares and directing removals. The Directives contemplated are (a) an initial Directive covering 15 or 20% of total available reparations, in order to get reparations deliveries rolling; (b) directives covering the final comprehensive reparations settlement. The U.S. Government would confer with all Governments on the FEC, inviting them to participate in the formulation of the Directives. Consultations would be conducted with representatives of the participating states, meeting continuously until interim Directives have been prepared. It would be the aim of the United States to produce interim Directives that have the fullest possible support of the participants and every effort would be made by the United States to achieve that end.
The interim Directives formulated as indicated above would be issued to the Supreme Commander and placed before the FEC like other interim Directives, in accordance with the terms of reference of the Commission.
[Page 599]In the event that the U.S. Government decides to proceed on the foregoing basis, this Government would welcome participation on the part of your Government in the consultations referred to above and this Government would appreciate receiving at the earliest practicable date an indication from your Government whether it would participate in such consultations.”
- At Canberra, The Hague, London, Manila, Moscow, Nanking, New Delhi, Ottawa, Paris, Tokyo, and Wellington.↩