895.50/4–1246: Telegram
The Acting Secretary of State to the Political Adviser in Korea (Langdon)
67. For Bunce90 No. 15. Position of Dept of State concerning its interest in and responsibility for action on question of Korean imports to meet “other purposes of the occupation” apparently needs clarification. In message War Dept to CinCafpac (CM–Out 84362, 12 Apr 1946)91 impression is given in par 2 that State Dept will undertake singlehanded to determine level of general economic activity in Korea and extent of rehabilitation in particular industries which will be permitted. Although need to give further thought to the general problem of economic development and re-orientation of Korea is acknowledged, State Dept’s position with respect to subject matter of War Department cable above referred to was restricted to consideration of narrower question of US financial responsibility for imported items which do not fall in class of goods required for prevention of such disease and unrest as would endanger the occupying forces. Dept’s position should not be construed as attempt to place general limitations on Korean economic development.
State Dept believes US financial obligation should include items required to accomplish “other objectives of the occupation,” but War Dept has thus far not agreed. If War Dept were to consent to the undertaking of financial responsibility for such items it would probably ask State Dept for recommendations concerning amounts of development and levels of activity in various industries. In this event we would in turn ask your recommendation. Probably advisable to commence preliminary consideration of these problems both in Korea and in Washington.