740.00119 Control (Japan) /7–3148: Telegram

The Secretary of State to the Acting Political Adviser in Japan (Sebald)

confidential

286. At Steering Committee Jul 27, 1948, in spite of Chinese and Philippine reservations, SC 273/14, Conduct of Trade with Japan, discussed para by para. US amendments as set forth in SC 273/15 accepted with exception of para 1c and 7. Paper evolving from discussion was referred to ad hoc committee for further consideration where several compromise proposals were suggested.

Re FEC 011/46, Restitution of Looted Property, ad hoc subcommittee had recommended that subpara 2 of para 3 of FEC 011/46 be referred to Committee I for study with view to formulation of separate policy on subject therein and that subcommittee working paper contained in Enclosure “B” of FEC 011/48 which contains request for info on looted ships located outside Japan and implementation of para 3 of FEC 011/12 also be referred Committee I for info or consideration. It further recommended that FEC 011/46 without subpara 2 of para 3 be approved by Steering Committee and forwarded to Commission. With reference to para 14 of FEC 011/46 US member proposed that cut-off date for lodging of claims be amended to 4 months as interim directive of March 17, 1948, provided for 8–month cut-off date and, in view of facilities already made available by SCAP, it appeared advisable to limit period. Only UK member accepted US proposal while Chinese and USSR members opposed it and other members either had no instructions or thought period should be determined by countries principally concerned. US member withdrew amendment with reservation that US member would be free to introduce it at Commission level.

At meeting FEC, Jul 29, US member formally re-introduced above amendment to FEC 011/49, Restitution of Looted Property, which was lost by vote of 4 (China, Netherlands, USSR, Australia) to 2 (US, UK) with 5 abstentions. FEC 011/49 was approved by vote of 10 in favor with USSR abstaining. Chinese member stated he was with great reluctance approving paper because of importance his Delegation attached to subpara 2 of para 3, relating to salvage of ships in waters outside Japan. He referred to fact that this para and unofficial subcommittee working paper had been referred to Committee I and expressed the hope that the members would find a real solution for the question of ships sunk or damaged in non-Japanese waters.

US member made following statement: [Here follows text of statement by General McCoy on July 29, printed page 993.]

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New Zealand member introduced following proposal with reference to trial of Japanese war criminals:

“The Far Eastern Commission decides as a matter of policy

  • “(a) that no further trials of Japanese war criminals should be initiated in respect of offences classified under Paragraph 1 (a) of the Policy Decision of the Far Eastern Commission entitled ‘Apprehension, Trial and Punishment of War Criminals in the Ear East’, passed by the Commission on April 3, 1946. Persons suspected of offences under category (a) may, however, be tried for category (b) and (c) offences as defined in the above Policy, and
  • “(b) that no investigation in respect of offences classified under Paragraph 1 (b) and (c) of the Policy Decision referred to above should be proceeded with after 31 December and that all trials in connection with such offences should be completed by 30 June 1949.”

After adjournment of meeting members acting as representatives of their governments and not as members of Commission, discussed procedure for admission of Pakistan and Burma to FEC. USSR indicated they were not opposed to admission of Pakistan and Burma, but were not in full agreement with procedure proposed by US. USSR representative indicated that on receipt of instructions he would submit proposal on procedure.

Marshall