740.00119 PW/3–1048

The Under Secretary of the Army ( Draper ) to Mr. Frank G. Wisner, Deputy to the Assistant Secretary of State for Occupied Areas ( Saltzman )

secret

Dear Mr. Wisner: Reference is made to a letter from Mr. Saltzman bearing the date of November 14, 1947 which transmitted a draft cable on the subject of Advance Transfers of Japanese Reparations.1

[Page 959]

The cable referred to was not approved at the time of receipt in this office but no official reply was sent to you then because Mr. Lovett and I were engaged in a series of conferences and exchange of letters on the whole subject of Japanese reparations, with particular reference to the work of the Overseas Consultants, Inc.

The report of Overseas Consultants, Inc.2 has now been received and is being distributed today. Accordingly, since the report involves analysis which should be given consideration in connection with further implementation of the Advance Transfer program, it is not believed advisable to send any cable on the subject to the Supreme Commander for Allied Powers at this time. Your draft cable is accordingly returned herewith.

Sincerely yours,

William H. Draper, Jr.
  1. Foreign Relations, 1947, vol. vi, p. 439.
  2. The so-called Strike report was dated February 26; see OCI letter of April 30, p. 970. The report was made public on March 10.