894.50/4–948

The United States Representative on the Far Eastern Commission ( McCoy ) to the Secretary of State

My Dear Mr. Secretary: I enclose a copy of a statement which was read by the Delegate of the Union of Soviet Socialist Republics at the meeting of the Far Eastern Commission held on April 8, 1948.1 In this statement the Soviet Delegate refers to the statement made by the United States Government on January 21, 19482 to the effect that it would be necessary to work out new measures for the establishment of a self-supporting economy in Japan. He urges that sufficient time has elapsed since January 21, 1948 for plans to have been made and submitted to the Far Eastern Commission for its consideration, but that no plans have been made available to the Far Eastern Commission. The Soviet Delegate stresses the fact that while no plans have been proposed by the United States to the Commission, the United States press has again and again contained articles which “refer to the fact that the United States Government is working out its policy in regard to reconstruction of the Japanese industry and is planning the allotment of certain credits for this purpose …” The Soviet Delegate claims that all of this has for its purpose unilateral action by the United States Government and evasion of the responsibilities of the Far Eastern Commission. On a separate sheet enclosed there is given a chronological sequence of Far Eastern Commission papers in regard to this matter.

I am persuaded that the statements made by the Soviet Representative are in a sense based on a misunderstanding of the actual situation, and I feel that the Department will wish to consider the statement of the Soviet Representative in the light of its statement of January 21, 1948 and against the background of newspaper articles since that date in the preparation of information which I might use for the benefit of the whole Commission.

Respectfully submitted,

Frank R. McCoy
[Page 967]
[Enclosure]

Chronological List of Far Eastern Commission Papers Relating to United States Proposals for Economic Rehabilitation in Japan and Soviet Reaction Thereto

1. FEC–292. Subject: United States Statement on the Economy of Japan

This document is a statement based on a statement given to the press by the Department of State on January 21, 1948. This statement was read to the members of the Far Eastern Commission by the American Delegate on January 21, 1948.

2. FEC–298. Subject: Soviet Proposal Concerning Planned Credits for the Reconstruction of Japanese Industry

This document was submitted to the Far Eastern Commission on February 24, 1948 for consideration by the Far Eastern Commission at its meeting on February 26, 1948. In this document the Soviet Delegate quotes an item taken from a Chinese Central News report from Japan which refers to the United States statement on the economy of Japan (cf. Item 1). The Chinese news report alleges that the United States is preparing to devote certain sums of money for industrial reconstruction in Japan. The Soviet Delegation asks for information as to what investments the United States has made in the period 1945–47 for the purpose of reconstruction of Japanese industry.

3. FEC–298/1. Subject: United States Statement in Reply to Soviet Questions Concerning Reconstruction of Japanese Industry

This document is a statement made by the United States Representative to the Far Eastern Commission on March 4, 1948 in reply to the questions raised by the Soviet Delegation in FEC–298 (cf. Item 2).

4. FEC–298/2. Subject: Soviet Statement Concerning Planned Credits for the Reconstruction of Japanese Industry

This document is a statement made by the Soviet Delegate to the Far Eastern Commission at its meeting on April 8, 1948. This is the document which is being brought to the attention of the Secretary of State for possible reply. In this statement the Soviet Representative states his opinion that sufficient time has now elapsed for the completion and presentation to the Far Eastern Commission of the plans forecast by the United States statement of January 21, 1948. He complains that no plans have been submitted, and indicates by reference to further articles in the press that apparently the United States is proceeding with its plans for reconstruction of Japanese industry and [Page 968] the allotment of credits without reference to the Far Eastern Commission. Specific reference is made to articles appearing in the “New York Herald Tribune” and “PM” of April 7, 1948.

  1. See annex 2, p. 725.
  2. Ante, p. 654.