694.9631/1–2347: Telegram

The Secretary of State to the Embassy in the Philippines


137. Your 133, January 23, 1947.20 U.S. position re reopening Japan to private trade approximately as follows: Conduct of Japanese foreign trade should be placed in hands private business rapidly as possible. First steps this direction should be taken soon as adequate system of export, import and exchange controls has been developed and put into effect.

Reopening Japan to private trade will not mean immediate and complete elimination present system government to government trading because for some time to come private traders will be handicapped by shortage or lack of food, housing, transportation, communication, and banking and other business services within Japan. Trading agencies of Japanese Government on one hand and of U.S. and possibly [Page 174] other outside government [on the] other will be essential in order trade be carried on in spite these difficulties.

Restoring Japanese foreign trade to private firms within and outside Japan does not mean such trade will thereafter be free and uncontrolled. SCAP must continue to exercise close supervision and control over formulation and implementation of Japanese export and import programs.

Sent to Manila, repeated to Tokyo.21

  1. Not printed.
  2. As telegram 31.