Foreign Relations of the United States, 1948, The Far East and Australasia, Volume VI

693.9431/9–2148: Telegram

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

secret

Washington, September 21, 1948—6 p. m.

331. At meeting Steering Committee Sept 14, 1948, SC–273/17, Conduct Trade with Jap, US able accept all changes proposed ad hoc committee except para 1c on which US position reserved. Chi proposed deletion para lb2 on grounds it not in accord other provisions paper—keynote which is limitation Jap trade. Dept considering acceptance Chi amendment but not for reasons advanced by Chi.

SC–309, Travel Jap Abroad, Austral member said his Govt consistently held view there are certain dangers associated with Jap traveling abroad prior peace conference, that such Jap wld try cause diversions among Allies or indulge propaganda which might improve Jap position, and gave illustration such danger interview Jap editor, Suzuki, appearing Sept 17 issue US News & World Report. He stated Mr. Suzuki “touches on some most tendentious questions” and several members this committee “wld have a great cause to resent the remarks which this particular Japanese is making in US.” New Zealand member stated Jap wld like have opportunity express their views in order influence opinion Allied countries, particularly this country. US member requested present views US Govt this kind article and, if it be propaganda, whether US proposes take appropriate action. UK asked US include in reply references two statements Jap editor dealing topics now before Commission—both of which refer building up Japan.

In view US statement last meeting Commission, SC–297/9, Level Economic Life Japan: Policy Towards Jap Shipbuilding Shipping, and SC–312, Removal Aircraft and Private Munitions Plants from Japan, retained agenda.

Meeting FEC Sept 15, 1948, FEC–293/8, Travel Outside Japan Japanese Commercial Representatives, and FEC–240/10, Interchange Persons Between Jap and Allied Countries Cultural Purposes, retained agenda because Austral, Chi, Phil reservations.

Soviet Amb, referring SCAP’s letter Jul 22 and ordinance Jap Govt Jul 31,¹ stated “immed after the enforcement of this order the Jap Govt and the agencies of local authority launched a broad campaign of repressive measures against the workers and employees of govt enterprises and institutions. Mass dismissals from work and numerous arrests of striking workers and employees and leaders of trade unions were carried out.” He declared actions SCAP and Jap Govt were violation para 10 Potsdam Declaration, FEC–045/5² and FEC 014/9³ and, replying Mr. Sebald’s statement Allied Council FEC–045/5 did not apply workers or employees govt enterprises and institutions and therefore prohibition strikes and conclusion collective agreements by workers and employees govt enterprises did not contradict FEC policy, stated it clear from provisions FEC–014/92, FEC–045/5 “no exceptions in regard to workers and employees of govt enterprises and institutions were made … and that interpretation attached to these decisions by Allied Council has no foundation whatsoever.” Therefore, in accord para IIA2 terms reference FEC, he proposed adoption following policy decision:

• “1. In accordance with Article III, 2, of the Terms of Reference of the Far Eastern Commission, the Supreme Commander should be requested to revoke his directive of Jul 22 and the ordinance of the Jap Govt of Jul 31 concerning the prohibition of strikes and collective bargaining for the workers and employees of govt enterprises and institutions, as being contrary to the decisions of the Far Eastern Commission FEC–014/9 and FEC–045/5 and as violating the principles for democratization of Japan.
• “2. Repressive measures against the workers and employees of govt enterprises and institutions should be discontinued.”

Austral member referred comments representative his Govt offered Allied Council, but stated he had no further comments now. US member read statement Secy Roy all and stated subject continuing and important one both FEC and Allied Council, that it under consideration Govt here and also responsible commander Japan and is subject before Jap Diet for action. Chi member stated he would like study Soviet statement before making comments. No comments other members, although Soviet Amb attacked Royall’s statement as full inconsistencies.

FEC–304/16, US member read reply from SCAP charges would not be collected on restitution cargoes in future.

In reply query Chi member, US member stated according Summations Mar and Sep, 1947, there are in Japan gold, silver and precious metals valued approx $250,000,000, but this valuation not accepted by bankers, which fact casts in question value ultimately assigned both “foreign exchange fund” and such other gold silver in Japan, ownership which not yet determined. He added US not rec’d from SCAP report proportion gold silver found Japan not already made part “foreign exchange fund” of clearly established Jap ownership.

Lovett

1. See despatch 465, July 24, from Tokyo, p. 834, and footnote 3. For SCAP’s reply to Ambassador Panyuslikin on September 17, see supra.
2. December 6, 1946, Activities of the Far Eastern Commission, report, p. 91.
3. June 19, 1947, ibid., p. 49.