740.00119 PW/3–2348

The Joint Chiefs of Staff to General of the Army Douglas Mac Arthur 1

confidential

Serial No. 90

Interim Directive Regarding Restitution of Looted Property

The following interim directive, Serial Number 90, prepared by the State Department in accordance with paragraph III, 3 of the terms of reference of the Far Eastern Commission, has been received from the State, Army, Navy, and Air Force Departments for transmission to you for your information and guidance:

  • “1. The instructions here below are additions to and do not derogate from the full force and effect of FEC 011/12 (JCS Directive Number 57).2
  • “2. The SCAP should accord the same treatment to all property found in Japan, and identified as having been located in an allied country either at or during the time of occupation, and which was removed therefrom by fraud or duress by the Japanese or their agents, as that which he accords to objects in the 4 categories listed in paragraph [Page 960] 1 of FEC 011/12 (JCS Directive Number 57) identified as having been located in an allied country at the time of occupation.
  • “3. In the case of allied vessels subject to restitution the SCAP may, at his discretion, make delivery at Western Pacific points outside Japan whenever it would be to his advantage and whenever the recipient country agrees. If delivery is so made any costs of supporting and repatriating ships crews used for such delivery would only be borne by the recipient country if it specifically agrees to do so. In the case of delivery of other items of looted property unutilized outgoing shipping space of Japanese vessels being employed in the importation of goods or repatriation of Japanese from a restitution recipient country to Japan may be made available, at the expense of the Japanese Government but at the risk of the recipient country, to deliver such items at points outside Japan.
  • “4. After full opportunities have been given for inspection of objects known to have been looted the Supreme Commander for the Allied Powers is authorized to liquidate property, excepting gold, silver, precious metals, and cultural objects, known to have been looted but not identified pursuant to the terms of this paper. The proceeds of such liquidation shall form a secured fund to be entrusted to the care of SCAP, which may be used, in the discretion of SCAP, for the purposes of the occupation. The initial value of the secured fund is to be preserved by SCAP or his successor authority. The Governments of Australia, China, France, India, Netherlands, Philippines, and U.K. should have a priority right to purchase items offered for liquidation by foreign exchange acceptable to SCAP up to but not exceeding their recognized national reparations percentage shares (when determined, and adjusted to total 100 per cent, applicable to this fund) of industrial assets available from within Japan. The secured fund should finally be distributed among the countries herein specified in accordance with the percentage mentioned above, payable in U.S. dollars, or, at the discretion of SCAP, in foreign exchange acceptable to the recipient countries concerned. The secured fund shall be distributed to the recipient countries not later than 1 October 1949.
  • “5. The Supreme Commander for the Allied Powers shall create an agency comprising one representative from each of the restitution and reparations teams in Japan of the eleven member countries of the Far Eastern Commission, who desire to participate, to advise on restitution matters. In addition, the Supreme Commander or his deputy should act as the non-voting chairman of the agency. It may meet at the call of the Supreme Commander or at the request of any member. The Supreme Commander should notify the United States Government of the views of the agency when his views conflict with those of the majority of the member countries.
  • “6. In cases of doubt as to the adequacy of the evidence of ownership submitted to support a claim for an object known to have been looted, the Supreme Commander shall inform the other members of the advisory agency of the existence of the claim. The advisory agency, after examining the evidence, shall give its advice to the Supreme Commander as to whether the claim should be approved or the provisions of paragraph 4 above applied.
  • “7. No claims for the restitution of looted property should be lodged with SCAP after 8 months from the issuance of this directive to [Page 961] SCAP; provided that after such terminal date, claims may, with the concurrence of SCAP, be lodged for property known to have been looted but not previously identified.”

  1. Copy transmitted to the Department by the State-Army-Navy-Air Force Coordinating Committee with SANA–5994, March 23, and by the Department on March 29 to the Far Eastern Commission and as instruction 46 to Nanking and as 63 to Manila.
  2. July 18, 1946; Foreign Relations, 1946, vol. viii, p. 556; and see footnote 85, to letter from the Secretary General of the Far Eastern Commission, July 18, 1946, ibid., p. 557.