740.00119 Control (Japan)/9–1548: Telegram

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

confidential

326. At Steering Committee meeting Sept 7, 1948, re SC 309, Travel of Jap Abroad, US member in order eliminate alleged necessity such paper stated he authorized inform members administrative control exercised by SCAP over Jap nationals abroad under his authorization includes periodic review their status, and, where necessary, taking appropriate action. He further informed members that US Govt would furnish pertinent info, when requested, on travel abroad such Jap nationals, to interested members FEC. Australian member requested postponement of discussion this subject while he sent US statement his Govt.

Committee approved SC–293/6, Travel Outside Japan Jap Commercial Representatives, by vote seven in favor with four abstentions—Chi, Australia, Phil, USSR.

Re SC–297/7, Level Economic Life Japan: Policy Towards Jap Shipbuilding and Shipping, on which US retains general reservation, UK member read statement urging immediate approval paper. Netherlands member expressed agreement with UK views.

Re SC–312, Removal Aircraft and Private Munitions Plants from Jap, US member stated he submitted UK statement his Govt, as yet [Page 846] rec’d no instructions. Philippine member associated himself with UK views expressed opinion SCAP should effect early speedy delivery reparations facilities all categories Jap industry specified Commission’s “interim removals program” and any supervision program this stage would defeat avowed purposes for which authorized by US interim directive.

SC–273/17, Conduct Trade with Jap, revised version SC 273/16, forwarded Steering Committee by ad hoc subcommittee but no action taken.

FEC meeting Sept 9, 1948, US member in order remove Australian objections FEC–293/8, Travel Outside Japan of Jap Commercial Representatives, stated SCAP authorizes travel of Jap abroad only to further attainment objectives occupation and SCAP so far as lies within his power will not permit such Jap remain abroad longer than necessary accomplish purposes for which permitted leave Japan without extension by SCAP same or another authorized purpose. Australian member requested subject be retained agenda while he referred US statement his Govt.

US member suggested discussion FEC–240/16, Interchange Persons Between Jap and Other Countries Cultural Purposes, be postponed view relationship existing between it and FEC–293/8.

FEC–242/32, Level Economic Life Japan: Policy Towards Jap Industry, related items, US member stated his Govt not furnished him instructions these papers, but his Govt had directed him to inform Commission it giving most intensive consideration this paper and in view the interest shared by all Govts represented on FEC in settlement these vital problems, it will endeavor present its views these matters soonest.

FEC–245/18, Civil Aviation Jap, US member stated he had no instructions. FEC–304/16, Port and Service Charges Foreign Vessels, Chi member read long statement requesting immediate action this paper. He understod SCAP Circular 10 Apr 2 exempted reparations cargoes but not restitution cargoes and SCAP was collecting such charges. He pointed out FEC–304/16 exempts both types cargo, that wording FEC–304/16 has been incorporated SC–273/14, Conduct Trade with Jap, and US no objection provision when incorporated into broader policy. US member stated he would be glad forward Chi statement to SCAP along with statement US Govt entirely in sympathy with it andat will be included, it is hoped, in policy paper soon to be sent him.

Chi member called attention Commission article Newsweek Aug 16, 1948, re discussion in FEC subject leaks on Replacement Lost Cultural Objects paper, noted article emphasized views opposed by Chinese, [Page 847] and requested attempt be made stop such leakages. Neth, French, USSR members expressed views similar Chi. US member agreed continue investigation matter.

Marshall