740.00119 FEAC/10–1248: Telegram

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

confidential

357. Subject is Summary FEC Meeting, Oct 7, 1948. Interchange of Persons Between Japan and Other Countries for Cultural Purposes, [Page 871] FEC–240/16. Position China and Philippines still reserved and USSR opposed. Chinese proposed deletion phrase “under this program” at end para 3. Item retained on agenda.

US member referred to Soviet statement on Level of Economic Life; stating his Govt has pointed repeatedly to mutually beneficial effects upon economic rehabilitation Far Eastern countries which may be expected from development Jap peaceful industry and enlargement Jap’s foreign economic ties; that on Jan 21 this year he had stated to Commission US Govt expected take positive measures to bring about that objective; that his Govt welcomes any indication other member countries FEC have similar interest in realizing potential advantages to all member countries which may he expected from free and healthy development Jap trade and production for peaceful purposes.

USSR member referred to questions asked last meeting on his statement, answering that (1) when determining terms “war industry” and “war supporting industry” Soviet Del adheres to definitions these categories industry shown in FEC–084/21; (2) concerning sources of reparations Soviet Del’s position re this question coincides with principles stated Potsdam Declaration, para 11; FEC–014/9 para 4; and FEC–084/21, para 1b; (3) concerning control over Jap industry Soviet Del considers establishment control with purpose preventing revival and creation Jap war industry should be discussed at peace conference and included in peace treaty; that at present time task of Allies is to ensure FEC–084/21 and FEC–059/3 are completely fulfilled and Soviet Del considers it necessary point out responsibility fulfillment these policy decisions is borne by SCAP.

US asked if Soviet Del envisaged control to take place after peace conference. USSR replied control machinery should be decided at peace conference. US asked which powers USSR considered “most interested in preventing a new Jap aggression”. USSR postponed reply. Australian member sought to sound out USSR on attitude toward war supporting industries. No reply given this meeting.

No discussion on Labor Policy in Japan (FEC–318).

US position on Non-Japanese Civil Aviation in Japan submitted FEC and referred Committee 2 along with other outstanding amendments FEC 245/18.

Travel Outside Japan of Japanese Commercial Reps (FEC–293/8/11). Working committee, in effort reconcile Soviet and Chinese views, recommended to FEC following compromise wording of para 1c: “The specific travel authorized herein should be only that essential to raise Japan’s foreign trade to a level consistent with her peaceful needs as defined by FEC and the number of Japanese commercial reps permitted to travel abroad should be similarly restricted.” Action postponed.

[Page 872]

FEC–242/32, Level of Economic Life in Japan and related items retained on agenda.

Re Suzuki, US member informed Commission his Govt has not as yet completed consideration of and action on questions arising from this incident. He stated, however, he was able inform Commission of 2 preliminary measures already taken by his Govt:

1.
Re all Jap whose travel from Jap may be duly authorized by SCAP, SCAP has been informed of support currently being accorded by this Govt to pertinent provisions policy proposals now under consideration by Commission, specifically para 3 FEC–240/16 and para 1d, 293/8.
2.
Re those Jap who will travel to US, this Govt is taking action insure they are advised exercise discretion making any addresses or statements or giving interviews of public character in order avoid such comment on policy matters as might be capable interpretation as propaganda activity.

Lovett