894.512/2–2547: Telegram

The Acting Political Adviser in Japan (Bishop) to the Secretary of State


41. ReDeptel 45, February 11.35 In view of FEC statement of policy (FEC 055/6) exemptions from capital levy or other extraordinary taxes are apparently determined by FEC. Current FEC policy provides exemption only for property owned by United Nations nationals. Authority has not been given to exempt other persons.

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Neutrals, former belligerents later considered friendly, stateless individuals, and liberated persons all are presently subject to the capital levy.

It is estimated there are 561,000 Koreans now in Japan who have refused repatriation. Of this number some 20,000, many of whom have sizeable assets, are believed to be subject to the capital levy.

Should Formosans be determined to be Chinese and thus United Nations nationals, they would automatically be exempt under present FEC policy; but this question is understood to be still under intergovernmental discussion and involves many complications, reourtel 492, October 29, 194636 and other correspondence to and from Department regarding Formosans in Japan.

If Department is considering proposing changes in FEC policy re exemption from capital levy or other extraordinary taxes request SCAP be fully advised of Department’s views soonest and given opportunity to comment thereof prior to final decision US position and before presentation to FEC.

Whitman37 presently absent from Japan.

  1. Not printed; it suggested consideration by SCAP of a 100,000 yen exemption from a capital levy only for Koreans intending to remain in Japan (894.512/2–1147).
  2. Not printed.
  3. Roswell H. Whitman, Associate Chief of the Division of Japanese and Korean Economic Affairs, was a member of the American Food Mission to Japan.