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

501.BB Korea/7–648: Telegram

The Political Adviser in Korea (Jacobs) to the Secretary of State ¹

secret
priority

Seoul, July 6, 1948.

523. Cite Zpol 1021. Part 1. Letter dated 25 June 1948 from General Merkulov to General Hodge regarding power question delivered in Seoul on 2 July. Official text basically same as broadcast on 29 June from Pyongyang and radioed to Washington as Seoul PolAd 514, July 2. Official text of Merkulov letter being despatched by pouch.²

Part 2. General Hodge’s proposed reply, included as Part 3 of this radio, reiterates previous American position and outlines course of action which could end deadlock. In view of Department’s recent note to Moscow on subject, command desires comments or concurrence in proposed text before letter is despatched to Pyongyang.

Part 3. Proposed reply by General Hodge follows:

“This is to acknowledge receipt of your letter of 25 June 1948, which was delivered to me in Seoul on 2 July.

“As I have often stated in the past, the American Command in Korea would welcome the opportunity to reach a settlement for all electric power hitherto received from Northern Korea, and to come to a mutually satisfactory agreement relating to future deliveries of electric power. The American position in this matter has been clearly set forth by the US Government note of 29 June 1948 to the Soviet Government, which says, in part: ‘It is the view of this government that so long as Soviet forces remain in occupation of North Korea, the Soviet Command cannot divest itself unilaterally of its responsibilities, including the responsibility incurred under the agreement of June 17, 1947. Should the Soviet Command persist in refusing to maintain an adequate flow of electric power to South Korea, the people of that area will thereby be subject to unwarranted hardships.’

“Following the practice of the American Command in past power negotiations, I expect to designate qualified Koreans to participate in any future negotiations on the power question. Similarly, it is acceptable to the American Command if the Soviet Command wishes to designate certain Koreans to act as its authorized representatives in accepting commodities transferred in payment for power under the 17 June 1947 agreement, and to participate in any further negotiation regarding electric power. Korean participation in such negotiations, however, in no way modifies the status of the Soviet land American Commands as the responsible military occupants in Korea.

“In order to promote the best interests of the Korean people, both north and south of the 38th parallel, I propose the following:

• “1. Immediate resumption of the flow of electric power from Northern to Southern Korea.
• “2. Simultaneous dispatch of a Korean from Pyongyang to Seoul to accept delivery of the first of the many trainloads of valuable electrical equipment and other commodities, which were ordered on world markets to meet the requirements specified in the Soviet Command.
• “3. Concurrently dispatch to Seoul of representatives of the Soviet Command, or agents designated and properly accredited by the Soviet Command with full powers to act on its behalf, in settlement for electric power received after 31 May 1947, and to reach an agreement regarding payment for electric power to be received during the remainder of the occupation period.”

Jacobs

1. From Messrs. Jacobs and Bunce.
2. For text, see Department of State Bulletin, August 1, 1948, p. 148. Telegram not printed.