740.00119 Control(Japan)/5–2947
The Department of State to the Australian Embassy
Aide-Mémoire
The Department of State desires to refer to the Australian Embassy’s aide-mémoire of May 29, 1947,35 and to this Government’s reply of June 23, 1947, regarding the operation of the rock phosphate industry on Angaur Island. The Embassy was informed that the Supreme Commander for the Allied Powers in Japan would be advised of the Australian Government’s views in the matter, that all pertinent information would be requested from the Supreme Commander with his comments, and that the Embassy would be advised of the United States position following receipt of the Supreme Commander’s reply.
In his reply the Supreme Commander has called the Department of State’s attention to a press release issued by his Headquarters on June 28, 1947, the pertinent portions of which are quoted below:
“The operation of a phosphate rock project on Angaur, formerly a Japanese mandated island, has been in progress for over a year in order to supply Japan with required fertilizer to increase indigenous food production and reduce the amount of United States appropriated funds required to meet the food deficit in Japan. Such use of stock piles of phosphate rock on Angaur Island was initially authorized by the Fertilizer Committee of the Combined Food Board, an international body on which the British Government has been represented. Subsequently, a contract was made with J. H. Pomeroy and Company, an American concern, for the mining of additional phosphate rock. When funds for this purpose expired, Washington authorized General MacArthur as Commander in Chief of the Far East Command to take over the project and operate it for occupation purposes with Japanese labor. The new arrangement for the conduct of the mining ensures the continuance of this essential enterprise. All expenses involved are being met by the Japanese. The mining equipment, which is American, is to be returned to the United States upon completion of the project.
“Angaur is a part of the Caroline Islands, formerly mandated to Japan out now under the trusteeship of the United States. As Angaur was captured by force of United States arms and is under United States control, there is no question as to the propriety of the United States utilizing the indigenous resources of the island to meet the vital needs of the Allied occupation in Japan.”
The Department of State has further been informed by the Supreme Commander that his Headquarters would have been glad at any time to furnish the Australian Government with complete information regarding the Angaur phosphate project, which has been in operation [Page 265] for more than a year; that the information furnished the Embassy by the Department of State in its aide-mémoire of June 23 regarding employment of Japanese technicians and laborers in order to reduce the dollar cost of the operation was correct, but that, as mentioned in the above-quoted press release, American-owned equipment is being employed rather than Japanese; that all aspects of the operation are and will remain under the close and continuous observation and supervision of personnel of the Supreme Commander’s Headquarters; that Japanese personnel on the island are and throughout the operation have been segregated in a particular area under military government inspection and control; and that all Japanese personnel will be returned to Japan on completion of the project.
It is the view of the United States Government that operation of the Angaur Island phosphate industry by a small number of Japanese technicians and laborers under the strict supervision and control of the Supreme Commander does not threaten the security of or otherwise injure any nation, while permitting a significant saving in occupation costs.