The Director of the Office, of Economic Security Policy (Robinson) to the Acting Director of Foreign Funds Control (Richards)

My Dear Mr. Richards: In connection with the reestablishment of remittance facilities between the United States and Japan, Foreign Funds Control recently has brought to the attention of this Department a number of applications involving the remittance of funds from the United States to Japan with a view to determining the treatment to be accorded such applications.

It is the view of this Department that to the extent that proceeds of remittances to Japan are intended for purposes not detrimental to occupation policies and not likely to disrupt the internal economy of Japan or jeopardize the political development of Japan along democratic lines, remittances should not be discouraged in the interest of producing foreign exchange which is needed to meet Japan’s essential import requirements, and which is at present largely supplied by this Government. The Supreme Commander for the Allied Powers in Japan has the ultimate responsibility and authority to determine the conditions and circumstances under which remittances to Japan may be effected. It would be the intent of this Department, therefore, to weed out and prevent those types of remittances which obviously would not be acceptable to the Supreme Commander for the Allied Powers in Japan.

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The following considerations are offered as a guide with respect to the action this Department believes should be taken on those applications which do not appear to fall within the categories provided for in the cable dispatched to the Supreme Commander for the Allied Powers in Japan under date of November 21, 1946 (No. W–86109), a copy of which is no doubt in your possession. It is understood that on the basis of that cable, Foreign Funds Control has issued to the National City Bank of New York, New York City, a new blanket license authorizing remittances of the nature envisaged therein.

In general, this Department would interpose no objection to the granting of licenses without specific consultation in each case to recognized religious, charitable and educational organizations for the remittance of funds to Japan through the commercial facilities presently available, provided the amounts involved and the purposes for which the funds would be used appear to be reasonable and consistent with the objectives of the occupation. On the other hand, this Department at present would withhold its approval of any remittance to Japan involving foreign investments in Japan and the continuation or promotion of activities which cannot be engaged in on a general basis, except in cases where such activities have already had the specific approval of the Supreme Commander for the Allied Powers in Japan. With respect to applications for licenses filed by business or financial concerns, or by private individuals to effect remittances to Japan for other than charitable, educational or religious purposes, it would be appreciated if this Department were informed of such applications before action on them is taken.

Sincerely yours,

Hamilton Robinson