Department of Defense files

The Joint Chiefs of Staff to General of the Army Douglas MacArthur, at Tokyo31

War 91906

The following directive,31a prepared by the State Department to implement the policy adopted by the Far Eastern Commission on 23 January 194732 under the provisions of paragraph II, A, 1, of its terms of reference,33 has been received from the State, War and Navy Departments for transmission to you for your guidance in accordance with paragraph III, 1, of those terms of reference: Directive begins:

Directive Regarding Interim Objectives of the Far Eastern Commission Toward the Determination of the Peaceful Needs of Japan

  • “1. The Far Eastern Commission determines as a matter of policy that the peaceful needs of the Japanese people should be defined as being substantially the standard of living prevailing in Japan during the period of 1930–1934.
  • “2. Data about the standard of living during 1930–1934 should for present purposes be used to make an estimate of Japan’s peaceful needs in 1950. In estimating the nature and size of the industrial structure within that level, account should be taken of such factors as technological developments, the balance of payments and employment.
  • “3. Acceptance of the above policy should not be interpreted to mean acceptance in advance of a specific level for any particular industry.”

Directive ends.

The Far Eastern Commission requests that you be informed:

That the Commission recognizes the necessity for establishing a broad principle for the guidance of the Commission and SCAP, prior to the establishment of particular levels of industry in various categories.
Since this policy is primarily for the guidance of the Commission release to the press is not recommended at the present time. However, since future publication may be regarded here as desirable your views on publication of the directive are requested.

  1. Copy transmitted to the Department of State by SWNCC in SWN–5152, February 17, and by General Hilldring to the Far Eastern Commission on February 19. On February 21 the Department sent the Commission General MacArthur’s reply of February 14 as follows: “The advisability of publication of this and of any directive affecting the occupation, as a matter of basic principle, should depend upon the internal conditions existing in Japan at the time publication is proposed.” (740.00119 Control (Japan)/2–1747)
  2. The directive was identified in other copies as Serial No. 68.
  3. Telegram 26 (FEC 5), January 27, 7 p.m., to Tokyo, reported the unanimous adoption of this policy (740.00119 FEAC/1–2747).
  4. See communiqué of the Moscow Conference of the Three Foreign Ministers, Foreign Relations, 1945, vol. ii, p. 815.