Foreign Relations of the United States, 1948, The Far East and Australasia, Volume VI

895.6463/6–248: Telegram

The Political Adviser in Korea (Jacobs) to the Secretary of State

secret
priority

Seoul, June 2, 1948.

417. Cite Zpol 790. Since cutting off power is an act of economic warfare, Department may wish to consider taking up with Moscow refusal of Soviet commander of North Korea to negotiate with US commander here on payment for electric power and resumption of current, as suggested in Seoul PolAd 363, May 15, as possible next course of action. To date only reply received to any of General Hodge’s recent letters is General Korotkov’s letter of 16 April which acknowledged receipt of Hodge’s letter March 22 and repeated that communications on power must be addressed to People’s Committee. Most of Hodge and Korotkov correspondence has been sent Department. Seoul despatch 67[76], March 31,¹ contained Korotkov letter March 16, Kim Il Sung letter March 20, and Hodge letter March 22. Seoul despatch 136, May 19,¹ contained Hodge letter May 8. Seoul PolAd telegram 383, May 22, contained Hodge letter May 17. Korotkov’s letter April 16 and General Hodge’s reply 27 were communicated Joint Chiefs of Staff in Zbgi 539 (270730/Z April 27). To complete Department’s files, text of Korotkov’s letter March 29 (enclosure therewith was sent to Department as enclosure with PolAd despatch 67 mentioned above) and Hodge’s letter April 19 are transmitted in Seoul PolAd’s next numbered telegram.¹ These letters, various recent PolAd telegrams (numbers 251, 254, 323, and 348²) as well as intercepts Pyongyang radio broadcasts available to Department should provide adequate information upon which to base Department’s note. Despatch now in preparation³ summarizes developments Korea electric power situation since Japanese surrender. For various reasons deviation from original proposal requesting meeting between representatives two commands and their Korean associates (Hodge letter March 22) not considered desirable before Korean government established. However, it is desirable to make settlement of outstanding power bill accrued during US occupation before Korean government formed. Department may desire to offer again to settle all past accounts in US dollars or in goods now awaiting shipment plus additional dollars and request early meeting on government level or in Korea to arrange this. Desirability of requesting resumption of flow of power before further negotiations or payments should be considered. Although Pyongyang has usually been mentioned as place of meeting and Korotkov has been requested to name place for meeting (letter May 17), Department may find it desirable suggest meeting in Seoul. Soviets probably do not want additional American observers in Pyongyang at this time, but they may welcome chance to observe situation in Seoul. We entertain little hope that this high level approach will produce any satisfactory results, but for the record’s sake and to show Koreans we are trying to do something on high level will be helpful in local propaganda. By eliciting Soviet statement regarding occupation responsibility and by revealing Soviet’s uncooperative attitude it may give us subject for further anti-Soviet propaganda in US and world press.⁴

Jacobs

1. Not printed.
1. Not printed.
1. Not printed.
2. None printed.
3. 242, August 2, not printed.
4. In telegram 643, June 7, 6 p. m., to Moscow, the Department summarized the matter and said a note was being drafted for the Embassy to the Soviet Foreign Office (501.BB Korea/6–248).