Office of the Historian

694.0031/8–1948

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

confidential
No. 539
Tokyo, August 19, 1948.
[Received September 1.]

Sir: I have the honor to refer to this Mission’s despatches No. 479 of July 30, 1948, No. 500 of August 16, and No. 525 of August 16, [Page 996] 1948,1 regarding the negotiation of a trade arrangement between representatives of certain countries of the sterling area and representatives of General Headquarters, Supreme Commander for the Allied Powers, and in that connection to enclose a copy of the final draft of the sterling area trade arrangement, to which is attached the final draft of the trade plan, list of sterling area participants, and agreed-upon definition of entrepot trade.2 The draft in the form enclosed now will be referred to the Supreme Commander and the respective governments of the sterling area participants for approval.

There have been no substantive changes made in the text of the trade arrangement draft subsequent to those indicated in this Mission’s despatch No. 500 referred to above. Nor has there been any change made in the definition of entrepot trade indicated in despatch No. 500. Furthermore, the Dominion of India is still listed as an observer and not as a participant to the trade arrangement.3

The final draft of the trade plan envisages sales of goods by the sterling area participants to Japan in the minimum value of $121,589,840 (U.S.$ value CIF Japan), including such items as raw cotton, raw wool, jute, wool waste and rags, hides and skins, cereals, iron and other ores, gums and resins, crude rubber, coal, salt, oilseeds, and coconut oil. In turn, sterling area participants will purchase goods from Japan in the minimum value of $121,589,840 (U.S.$ value FOB Japan), including such items as cotton textiles, silk, rayon, and wool manufactures, raw silk, industrial machinery and parts, rolling stock, paper and paper products, and various chemicals.

There is also enclosed a copy of this Headquarters’ press release regarding this matter which appeared in the August 17, 1948 edition of the Nippon Times.

Additional copies of the final draft of the trade arrangement will be forwarded as soon as obtained.

Respectfully yours,

W. J. Sebald
  1. None printed.↩
  2. Enclosures not printed.↩
  3. Despatch 666, October 11, from Tokyo, reported that India was listed as a participant rather than an observer.↩