740.00119 FEAC/8–849: Telegram
The Secretary of State to the Acting Political Adviser in Japan (Sebald)
382. Summary FEC Mtg July 28, 1949.
Trade-Marks, Trade Names and Marking of Merchandise in Japan ( FEC–332/11)
Fr member stated if vote was taken he wld be obliged abstain as he had no instrs. UK member made fol statement for record: “In order not to delay action on FEC–332/11 we are prepared to vote in favor of it. At the same time I wish to have it recorded that my Govt does not consider that paras 6 and 7 deal adequately with the serious problem of the proper marking of merchandise by the Japanese. The UK delegation therefore reserves the right to bring up this question again and ask for its further consideration in the Com.” NZ member associated himself with UK statement. Indian member recorded his understanding in minutes that nothing in policy decision shld prejudice right of member nations to require imports be marked to show country of origin. Austral member stated his delegation had agreed to delete second sentence para 6, but wld have preferred retention of provision. Canad member associated himself with views of UK, NZ and Austral members. Com adopted FEC–332/11 by vote 9 in favor 2 abstentions (France, USSR).1
Labor Policy in Japan ( FEC–318/20)
Austral member stated his delegation had introduced its proposal in interest of affording correct approach to problem, but added it was not his intention press at present for vote on FEC–318/20. However, his delegation not prepared retreat from principle that there shld be no distinction re right strike between workers in Govt enterprises and workers in private enterprises. He added he thought it useful to clarify difference between FEC–318/20 which attempted deal with only one specific aspect labor problem and to do so in correct and dignified manner and Sov proposal which had been reintroduced at each successive [Page 826] level of discussion and had been accompanied by numerous statements dealing with such questions as repressive measures by Jap police.
No discussion of Sov proposal.
Japanese Reparations and Level of Industry ( FEC–340)
Chi member made statement to effect US reply of June 10 had in no way changed Chi views on matter. He desired to place on record comment that US statement particularly those passages where it interprets para 11 of Potsdam Declaration are not convincing enough to meet points raised in Chi statement. His delegation had decided to defer fuller observations in order hear views other delegations on recent US statement, but reserved right to make another comprehensive statement of its position.
US member in reply Sov query of July 13 stated
“The US in its statement of May 12 on Jap reparation issue concluded that: ‘The deficit Jap economy shows little prospect of being balanced in near future and, to achieve eventual balance, will require all resources at its disposal.’ It is the view of US that until Japan can regain a self-supporting status at reasonable standards of living—not likely, even according to most optimistic estimates, for some years to come—it will have no resources surplus to its peaceful needs available for reparations. Considering almost four years already elapsed since surrender and considering interest of all FEC nations in restoration of normal economic relationships throughout Far East at earliest possible time, exaction additional industrial reparations from Japan wld not now or at any future date be either feasible or desirable.”
Further consideration postponed.
Soviet Statement Re Alleged Manufacture of Armaments in Japan
Sov member requested explanation of report in Agency France Press that Gen Niblo made statement that Ordnance Supply Service is manufacturing large quantity tanks and other mil equipment in Jap plants with purpose of stockpiling supplies and Jap labor is being used in production of tanks and other mil equipment.
On July 29 US delegation circulated reply to Sov query to effect US has investigated substance of inquiry and there is absolutely no foundation to report that Brig. Gen. Niblo2 made statement attributed to him by Agency France Press.