740.0011 PW (Peace)/10–947
The Chinese Minister for Foreign Affairs (Wang) to the Secretary of State 40
confidential
Aide-Mémoire on the Restitution of Japanese Looted Property
The Far Eastern Commission in Washington is about to adopt a policy statement entitled “Restitution of Looted Property”. This decision of the Commission would authorize the proceeds from the sale of unidentified looted property of a “secured fund” to be used to finance self-liquidating imports into Japan for a period ending on a specified date, probably October 1, 1949. On that date, the total amount of the fund will be divided among the seven recipient countries, including China, the territories of which, one and all, were occupied in part or in toto and looted by Japan in the course of her aggression against them. It is understood that the total proceeds from the sale of unidentified looted property will amount to a considerable sum and, on the basis of the percentages of reparations shares which the Far Eastern Commission will shortly decide to assign to the eleven countries represented thereon, China’s share in these proceeds should be a substantial one.
The Chinese Government had urged the distribution to the countries entitled to receive a share of the proceeds immediately upon the liquidation of the unidentified looted property, and, in a spirit of compromise, accepted the United States proposal to use these proceeds as a “secured fund” for financing self-liquidating imports into Japan.
China desires, however, to make use of her share, which will be paid to her about two years from now as a security for a loan to be arranged with a governmental or commercial bank, so that her share in the above-mentioned “secured fund” could be made available for the use [Page 433] of the Chinese Government before the actual date of distribution. It is hoped that the American Government would facilitate arrangements for such a loan, and extend, through its appropriate agency, all necessary co-operation by assuring the bank or banks with which such arrangements may be made, of the approximate amount of China’s share and the date of its availability to her. While the exact value of the Japanese looted property and China’s share in it remain to be determined, the Chinese Government hopes that the amount of loan would, in any case, not be less than U.S. $150,000,000. The Chinese Government would undertake to repay the loan in full from its national treasury, in case the value of her share in the looted property should not be able to cover the full amount of the loan.
- Handed by Dr. Wang to the Secretary in New York, October 9.↩