740.00119 FEAC/12–2348: Airgram

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

confidential

A–179. Subject is FEC Meeting, December 16, 1948. Labor Policy in Japan ( FEC–318). The Australian member made the following statement:

“Mr. Chairman, I should like to associate myself with the request made by the New Zealand representative at the last meeting for a clear statement from the United States delegation concerning the application of FEC–045/5. We ourselves would hold that FEC–045/5 applies to workers in government enterprises.

“There seems to be a fundamental difference of approach between the Australian Government, the New Zealand Government, and others who have maintained that FEC–045/5 should apply to workers in government enterprises on the one hand, and the attitude of the United States on the other. I should like to say with all due respect that SCAP’s attitude may well be conditioned by the notion popularly held in the United States during the war that ‘you cannot strike against the government’. I would submit again with all due respect that this notion was proved to be untenable, for example, the coal strike of 1946. The question which genuinely disturbs us is that while SCAP is aiming to establish real democracy in Japan he is encouraging the adoption of labor legislation which has proved unworkable under a democracy.

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“The position might be altogether different if the Diet were to initiate and adopt the legislation as an entirely free agent. What one Diet passed another Diet could repeal. Our objection in the present case is, however, to the endorsement apparently given by the Supreme Commander to legislation which we consider not only undesirable but unnecessary in view of the authority already given to the Supreme Commander under FEC–045/5 to prohibit any strikes which would prejudice the occupation.”

Further action deferred.

Policy Towards Patents, utility Models and Designs in Japan ( FEC–284/10). The USSR member introduced amendments to the effect that paragraph 4 of the present paper be worded as it was in C 1–284/3 and that paragraph 5 be deleted from FEC–284/10 on the grounds that paragraph 5 contained references to international conventions in which the USSR may not be a participant. These amendments had been defeated in the Steering Committee. Further action deferred.

Under Other Business the Australian member made the following statement:

“Mr. Chairman, we have studied with considerable interest the statement which you made at the last meeting concerning excessive concentration of economic power in Japan. This is of course a very important question. I appreciate that the United States has made an attempt to outline in a broad and general way the action which has been taken by the Supreme Commander to implement the deconcentration program. We would feel, nevertheless, that before we could accept the United States statement it would be necessary for the Far Eastern Commission to have this statement substantiated with much more factual information than it has been possible to include in the United States statement. I would like to suggest that the United States statement be referred to the appropriate committee where the United States member could produce all of the relevant information necessary to substantiate this statement.”

The US Statement was referred to Committee 2.

Lovett