894.00/9–2948

Memorandum of Conversation by the Acting Political Adviser in Japan (Sebald)1

secret
Participants: Sir Alvary D. F. Gascoigne, Head of the United Kingdom
Liaison Mission in Japan.
Mr. W. J. Sebald

Sir Alvary Gascoigne called at my office by appointment for the purpose of conveying to me certain information regarding his recent trip to London. During his stay at the Foreign Office, Sir Alvary said that he met with Mr. Bevin upon two occasions and worked very closely with Mr. Dening and Mr. MacDermot of the Far Eastern desk.

Sir Alvary said that in general the Japanese situation, which appeared to be going smoothly, was relegated to a secondary position by the Foreign Office in view of the more pressing problems of Europe and elsewhere. On the other hand, he said that the Foreign Office view regarding a Japanese Peace Treaty continues unchanged and that it is hoped that a peace conference can be convoked as soon as possible. He said that the British view is that domestic politics in the United States would probably preclude any possibility of a peace conference being summoned before next spring, but it is the Foreign Office’s hope that a conference can be summoned at that time. When I queried Sir Alvary whether the United Kingdom would take the initiative in summoning such a conference, he replied that he very much doubted that the United Kingdom could do so. He felt that the United States, [Page 843] being “in charge” in Japan, would necessarily have to take the initiative. He volunteered (as his personal opinion) the information that Mr. Dening would head the United Kingdom Delegation to the Peace Conference. He also said that he had invited Mr. Dening to visit Japan during October 1948 for several weeks, in order that he might obtain first-hand information of the situation here.

On the subject of the economy of Japan, Sir Alvary said that the Foreign Office is in full agreement with the United States position that a viable economy is necessary for Japan. It is his opinion that the United States can expect full support from the United Kingdom in its objectives in this regard. Sir Alvary also stated that it is well appreciated in the Foreign Office that a self-sufficient Japan will be of tremendous influence upon the economy and trade of the Far East as a whole.

Sir Alvary said that he had had many opportunities to discuss the Japanese situation with leading British businessmen interested in Japanese trade, and had also given an address at a luncheon held in his honor by the China Association in London. He discovered that British businessmen are surprisingly well informed concerning Japan, and despite some misinformation regarding difficulties encountered by British businessmen in carrying on their commercial operations in Japan, he felt that most of them were fully alive to the problems involved. There was some complaint that American businessmen are in a preferred status in Japan a feeling which Sir Alvary said he rapidly dissipated by explaining that the attitude of SCAP is entirely impartial in these matters.

Sir Alvary commented upon a lengthy interview which he has had since his return with General MacArthur. After relating his experiences on his trip, Sir Alvary said the discussion turned upon the present Japanese labor situation and specifically the proposed amendments to the Public Service Law. Sir Alvary said that General MaC–Arthur became rather exercised on this subject, and during the course of a lengthy explanation, charged Mr. Patrick Shaw with joining forces with the Kremlin at the recent Allied Council meeting.2 Sir Alvary stated that he attempted to explain to General MacArthur the desire of his Government to see evolved in Japan, a system of conciliation and/or arbitration for public servants—something along the lines of the British system. He said, however, that General MacArthur repeatedly reverted to Mr. Shaw’s criticisms at the recent Allied Council meeting and said that he could not understand why the Australian Member constantly aligns himself with the Soviet Member in criticizing SCAP.

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Sir Alvary was obviously disturbed and somewhat discouraged by what he termed General MacArthur’s unreasonable attitude in this interview and said he hoped that the General would not construe what he and Mr. Shaw consider to be constructive suggestions, as unwarranted criticism.

I told Sir Alvary it was my personal opinion that Mr. Shaw’s recent statement at the Allied Council meeting was a well-measured and constructive statement, and even though I did not necessarily agree with everything which he said, I nevertheless did not feel it necessary to take issue with his remarks. I also told Sir Alvary that I had used almost identical words in my oral report to General MacArthur immediately after the meeting, and that I felt a statement of the kind made by Mr. Shaw could contribute to the Occupation by focusing attention upon other democratic systems. Sir Alvary was profuse in his expressions of appreciation of my attitude regarding Mr. Shaw. The latter, in his opinion, is a sincere young diplomat, who, however, is easily discouraged in his efforts to keep discussions in the Allied Council on a constructive vein. Sir Alvary said that in his opinion Mr. Shaw is “anything but a Red”, in contrast with Mr. McMahon Ball “who is definitely a pink”.

Sir Alvary said that he had advised Mr. Shaw to wait a week or ten days before calling upon General MacArthur to explain the reasons underlying his recent statements in the Council.3 This statement, according to Sir Alvary, is entirely in accord with the British Government’s attitude on this question.

W. J. Sebald
  1. Copy transmitted in covering instruction 400, September 29, to London.
  2. See next to last paragraph of despatch 569, August 31, supra.
  3. An amicable meeting took place on September 9.