740.00119 Control Japan/5–1247

Memorandum by the Department of State to the United States Member of the Far Eastern Commission (McCoy)

In accordance with paragraph86 of the Memorandum of April 8, 1947, forwarding to the U.S. Member of the Far Eastern Commission [Page 394] SWNCC 236/43,87 the negotiating instructions referred to in that paragraph are hereby transmitted.

The United States Member is requested to expedite the negotiation of this United States policy in the Far Eastern Commission as a matter of the utmost urgency. In view of the length of time which the Commission has already devoted to the Level of Industry and the detailed discussions thereon which have taken place, it is hoped that every effort will now be made to complete this matter by obtaining a policy decision on this paper within three weeks.

Three amendments to this paper have now been agreed to in SWNCC. You are requested to introduce these in the FEC as U.S. amendments to FEC 218. They are as follows:

1.
Substitute for para. 1 g of the enclosure to FEC 218 the following:

Aluminum and Magnesium

(Definition: “Plants and establishments primarily engaged in the production of alumina, primary or secondary aluminum and magnesium and in the rolling, extruding, drawing, forging and casting of aluminum and magnesium and their alloys.”)

(1)
All facilities for the production of magnesium should be made available for claim.
(2)
All facilities in excess of 25,000 metric tons per year aluminum reducing capacity should be made available for claim.
(3)
All facilities primarily engaged in the rolling, extruding, drawing, forging, and casting of aluminum and magnesium and their alloys should be made available for claim.”
2.
a) At the end of the first sentence of para. b.(1) add the following words: “including the Ryukyus”;
b) After the first sentence insert the following: “During the period of the occupation SCAP may also retain additional fertilizer capacity necessary to meet essential fertilizer imports for Southern Korea.”
3.
As a new paragraph 3. to the Enclosure of FEC 218, add the following:

“In addition to the facilities to remain in Japan, as provided in this paper, SCAP may retain temporarily any items deemed essential to the needs of the occupation.”

In order to secure prompt agreement by the Commission, the U.S. Member is authorized to accept such limited and minor changes as would not materially affect the over-all level of retention as provided in the Conclusions of SWNCC 236/43.

Only two additional matters require immediate FEC action in connection with SWNCC 236/43 (FEC 218). These are the Selections paper, SC–041/7, and the Industrial Disarmament paper, FEC [Page 395] 084/11. Instructions on this latter document have been recently transmitted to you.

In order to clarify the procedures whereby Japanese facilities will be selected for reparations it is necessary that FEC approval be obtained to SC–041/7, “The Selection of Plants for Reparations Removals, Destruction or Retention in Japan”. Existing instructions to you on this paper appear adequate for purposes of final negotiation.

  1. Number of paragraph not inserted in file copy.
  2. Ante, p. 382.