740.00119 Control (Korea)/2–2346
Memorandum of Conversation, by Mr. Albert H. Garretson, Assistant to the Legal Adviser (Hackworth)
| Participants: | Mr. Hackworth |
| Mr. Summers, War Department | |
| Mr. Garretson, Le |
Mr. Summers explained that the Assistant Secretary of War had requested that he see Mr. Hackworth, since Mr. Peterson was most anxious to clear SWNCC 265 concerning the disposal of Japanese property in Korea for transmission to General Hodge. Mr. Hackworth pointed out that Le had considerable misgivings as to the proposed sale of former Japanese farmlands, urban residences, and small business holdings to Koreans by the United States Military Government in Korea. Clearly this action could not be taken by virtue of United States authority in Korea as a military occupant, and Mr. Hackworth therefore felt that it was up to the War Department to formulate a case for this action under the power of the Supreme Commander to effectuate the Japanese surrender. Mr. Summers agreed that this was difficult to do, but stated that the War Department would prepare the usual explanatory statement of record to justify the proposed action. He indicated that such a statement would presumably take the line that the Supreme Commander would be acting on the basis of economic necessity in addition to the responsibility which had been assumed to free the Korean people from the continued dominance of the Japanese. The program of repatriating the Korean Japanese to the main Japanese islands has created an acute agricultural and small business problem in Korea. The military government was under the necessity of maximizing food production in Korea in order to prevent serious food shortages from threatening public security. Moreover, uncertainty as to the utilization of the land and holdings in [Page 643] question would have a very unsettling effect on public opinion. Consequently, it was necessary to take definitive action in order successfully to effectuate the surrender in Korea.
Mr. Hackworth also suggested and Mr. Summers agreed that the directive to the Supreme Commander for General Hodge should contain a clear provision that the funds resulting from any program of transfer or sale should be held in safekeeping by the United States Military Government for subsequent disposition by the appropriate authorities.
Finally, Mr. Hackworth approved an addition to the final paragraph of the proposed directive which recommended to General Hodge that in proceeding with the program of property transfers, he should, on the basis of Korean legal advice, avoid the use of the word “sale”.