740.00119 FEAC/9–2949: Telegram
The Acting Secretary of State to the Acting Political Adviser in Japan (Sebald)
472. FEC Steering Comite meeting, Sep 20—Fishing and Aquatic Industries paper amended and forwarded to Comm as FEC 271–25. US, China, and USSR oppose. US proposal accepted for adding statement that “Nothing in this paper shall be interpreted to apply to Japanese whaling activities.” US proposal for amending Para 2b as indicated in SC 271–24 not accepted. Instead final sentence in Para 2b was deleted by the Steering Comite.
FEC meeting, Sep 22—Restitution of Looted Property.
Phil Member proposed fol amendment Para 8 of FEC 011/51: “The secured fund shld finally be distributed among the countries herein specified in accordance with a schedule of shares to be agreed upon among themselves, payable in US dollars or, at the discretion of the Supreme Commander for the Allied Powers, in Fon exchange acceptable to the recipient countries concerned. The secured fund shall be made available for distribution to the recipient country not later than 1 Apr 1950.” Action postponed.1
Fishing and Aquatic Industries in Jap ( FEC 271/25).
No action. Gen discussion. Chi Del stated dissatisfaction with Western boundary of Jap fishing area as proposed in paper, Sov Del reintroduced proposed amendment that Para 2b read: “No extension of Jap fishing or other commercial aquatic activities beyond the foregoing area should be permitted without prior authorization by the FEC.” Also inquired about press report in New York Times 22 Sep that SCAP had expanded the Jap fishing area. Austral Rep stated that Para 5 cld be interpreted that Jap need not apply conservation measures to whaling industry. Phil Del said that Para 2b should be amended to make SCAP obtain prior authorization from countries indicating concern for the particular area.
[Page 869]Level of Econ Life in Jap.
Sov Rep introduced fol motion:
“The FEC decides as a matter of policy that the provisions of Para, 9b of the FEC policy decision ‘Reduction of Jap Industrial War Potential’ (FEC–084/21) regarding productive capacity maxima in war-supporting industries are hereby extended until the adoption by the FEC of a decision on the level of Econ life in Jap.”
US Member issued statement of objection to such amendment referring to points made in May 12 reparations statement.
Sov Inquiry concerning Elimination of Excessive Concentration of Econ Power in Jap.
Sov Rep presented the fol inquiry:
“On Aug 3, 1949, SCAP Headquarters issued a statement to the effect that the dissolution of large industrial corporations and the elimination of excessive concentration of Econ power in Jap had, allegedly, now been completed.
“In this connection the Sov Del considers it necessary that the Supreme Commander provide the FEC with info regarding the results of the implementation of the program for the dissolution of large industrial corporations and the elimination of excessive concentration of Econ power in Jap.
“It is desirable that the fol questions be clarified in the info:
- “1. What large industrial and banking corporations (Zaibatsu) have been dissolved?
- 2. The aggregate capital of the dissolved companies placed at the disposal of the holding company liquidation Comm?
- 3. The amount of shares already distributed and the principle upon which this distribution was based?
- 4. The amount and value of shares of the dissolved companies, acquired by foreigners and foreign companies; and specifically by which foreign companies?
- 5. Which foreign firms have already drawn up business contracts with Jap companies?
- 6. How many large industrial and banking companies, included in the category of ‘restricted’ companies, were subjected to de-concentration in each branch of industry and the names of these companies?
- 7. The result of the purge in Econ and financial organizations provided for in Part IV, Para 2a, of the policy decision of the FEC–014/9 ‘Basic Post-Surrender Policy for Jap.’
“Besides that, the Sov Del deems it desirable that the members of the FEC be provided with the full text of the report of the Deconcentration Review Board submitted to the Supreme Commander according to the New York Times report of Aug. 4, 1949.”
Pls advise if these telegraphic summaries of FEC meetings may be discontinued without great inconvenience. Minutes of meetings can [Page 870] be sent by air pouch fol day. Considering fast courier service and expense discontinuation suggested.
- See Department of State Bulletin, November 11, 1949, p. 790.↩