740.00119 FEAC/10–649: Telegram
The Secretary of State to the Acting Political Adviser in Japan (Sebald)
499. Subj is Summary FEC Mtg, Oct 6, 1949.
Restitution of Looted Property ( FEC 271/25)
Comm agreed to amend penultimate sentence of Para 8, FEC 011/51, as fols: “The secured fund shld finally be distributed among the countries herein specified in accordance with the percentages mentioned above, or in accordance with a schedule of shares to be agreed upon by such countries, payable in US dollars or, at the discretion of the Supreme Commander for the Allied Powers, in Fon exchange acceptable to the countries concerned,” by vote of 10 in favor with 1 abstention (USSR).
Chi member expressed hope US wld participate in discussions to be held by seven countries to determine schedule of shares. It appeared to be gen consensus of Comm that agreement reached by Comite of seven countries need not be referred to Comm for its approval, that Comite was not mtg under auspices of Comm, but that Comite might notify Comm of its results so that necessary directive might be issued to SCAP.
Fishing and Aquatic Industries in Jap ( FEC 271/25)
US member distributed FEC 271/28, reply to Sov query of Sep 15 on fishing inspection and FEC 271/29, reply to Sov query re NY Times art on expansion by SCAP of area authorized of Jap fishing. US [Page 877] member reintroduced its amendment to Para 2b that had been defeated in Steering Comite. Austral member stated US amendment not acceptable to his Govt since it required assurance that SCAP wld do more than attempt to reach an agreement with country which felt it had a direct concern in area in which further expansion of fishing area was contemplated. He stated his Govt cld accept Para 2b as it appears in FEC 271/25 with US statement of understanding if that were wish of majority. Chi member proposed that all of Para 2b after words “FEC” in fifth line be deleted and replaced by fol: “claims a direct concern in respect to fishing or other commercial aquatic activities, SCAP shall secure consent of such country to an agreement reasonably calculated to protect the legitimate interests of such country and to benefit the Jap economy.” Comm agreed to refer item back to Steering Comite.
Level of Economic Life in Jap ( FEC 242/32, FEC 297/10)
Sov member stated his proposals were not inimical to development of peaceful branches of Jap industry and requested that Comm consider them. Indian member pointed out he cld see little difference between substance of US position presented on May 12, 1949 and Para 1 of USSR statement in FEC 232/37. No further discussion.
Jap Participation in Internatl Relations ( FEC 339)
Re Jap’s adherence to UPU, USSR member stated his Govt believes, that as matter of principle it is possible to permit Jap to adhere to, Universal Postal Convention, but that such permission shld be granted by FEC. Therefore his Govt believes that Jap’s adherence to the Universal Postal Convention was performed in violation of Terms of Reference of FEC and therefore cannot, be recognized as legal until; appropriate decision on question has been reached by FEC.
Under other business Sov member reiterated inquiry re Econ de-concentration. Phil member inquired as to report in N.Y. Times that earmarked gold had been delivered to Fr and Thailand. Deputy SYG pointed out directive issued by US on subj was in process of being circulated.