740.00119 FEAC(Info)/2–1947: Telegram
The Secretary of State to the Acting Political Adviser in Japan ( Bishop )
54. FEC 8. Obligation to Consult Allied Council. In view of firm Soviet position and pressing need of passing papers through Commission, U.S. Representative with approval of U.S. Government on Feb. 13 proposed following phrase in lieu of Soviet amendment: “upon such consultation with the Allied Council as is required by the Council’s terms of reference”.38 This will not place additional burdens upon SCAP. Soviet representative has referred matter to his government.
Advance Transfers of Reparations. Secretary Marshall Feb. 13 authorized placing before FEC for possible approval U.S. policy on advance transfers covering delivery to China, Philippines, Britain and Netherlands for relief and reconstruction purposes in Far East of 30 percent of Japanese internal assets declared available for reparations. FEC will have period until U.S. policy regarding reparations procedures has been determined to reach decision on advance transfers, so no delay will be caused by placing matter before FEC. Reparations [Page 360] Committee of FEC held two meetings Feb. 14 to consider policy. France and India insist must have share of advance transfers but their demands can be over-ruled if necessary. More serious is Soviet proposal that percentage to be delivered as advance transfers be raised to 50 or even 70 and that deliveries be made to all 11 nations represented on FEC with Soviet receiving 5 or more percent. Whether or not this is Soviet firm position not certain at present.
- Telegram 49, February 15, 1 p.m., to Tokyo, noted that the British delegate would have preferred no reference to the Allied Council (894.60/2–1547).↩