695.1115/11–1546: Telegram
The Political Adviser in Korea (Langdon) to the Secretary of State
[Received November 17—9:47 p.m.]
134. Reurad W 84781, Too 051801/7. Existing procedures are adequate to control foreign trade whether handled privately or by USCC. Unless practicable arrangements for handling balances as indicated ourad Tfymg 2883 to SCAP believe it inadvisable to permit businessmen into Korea at this time. Even assuming practicable arrangement, such men should be carefully briefed re limited trade prospects and because of lack of housing and other facilities would necessarily be limited in number and duration of visit. For these reasons, prior clearance with Theater Command would be advisable. Businessmen of allied countries should be admitted with Americans on the basis of reciprocity.
Concur in your view that establishment of exchange rate is not essential prerequisite to success limited private trade. Because of instability of price level here establishment of stable exchange rate not now practical. A commercial exchange rate is desirable earliest to permit, under controls, the accumulation of foreign exchange from exports, foreign residents expenditures, and souvenir purchases. Pressure for commercial exchange rate will become more critical if one is established for Japan.
Ability to stabilize price and establish stable rate will depend upon success of the food program, reconversions, tax collection and expanded production of consumer goods. Plans should be made in advance for establishing commercial exchange rate as soon as internal conditions make this possible. Hodge and Langdon concur.