740.00119 FEAC/11–3049

The Australian Embassy to the Department of State

Aide-Mémoire

The Australian Government has carefully considered the arguments set forth in the Department of State’s aide-mémoire of 9th November1 concerning a proposed Far Eastern Commission policy decision which would permit official Japanese trade agents to maintain offices abroad and/or perform certain functions pertaining to the civil status and property rights of Japanese Nationals who are residing abroad, but is unable to support the proposed policy.

The Australian Government would not deny, now that two-way trade between Japan and other countries is gaining momentum, that the Supreme Commander for the Allied Powers can scarcely be expected to continue to control Japanese trade indefinitely without increasing his staff, and that, if there were no prospect of a peace settlement with Japan, some additional machinery or other facilities would in due course have to be established.

The Australian Government, however, is not convinced that the only way to develop trade between Japan and other countries is to allow the Japanese Government to establish trade promotion offices abroad and that the establishment of such offices is a matter of great urgency. Because of exchange difficulties, trade between Japan and its largest customers is likely for some time to remain subject to some form of Governmental control at each end, and it would not appear that a trade promotion campaign conducted by official Japanese trade agents abroad would give an immediate and appreciable stimulus to Japanese trade nor that this is a matter of extreme urgency.

It would also appear that it is not a matter of extreme urgency that official Japanese trade agents should be permitted to handle matters affecting the civil status and property rights of Japanese abroad. Such matters have presumably been dealt with under established procedures since the commencement of the war with Japan and it seems unlikely that they have increased in volume or complexity so suddenly as to call for the urgent establishment of new machinery.

The reasons advanced in support of the proposed policy, as set forth in the Department of State’s aide-mémoire, are, in the opinion of the [Page 910] Australian Government, arguments in favour of an early peace settlement with Japan. A resumption by Japan of normal international functions and responsibilities in advance of a general settlement could in its view be justified only if there were no prospect of concluding such a settlement. The Australian Government considers that an early peace settlement is desirable and feasible and that every effort should be made to conclude it with the least possible delay. Unless and until a settlement complete with appropriate safe-guards for the Japanese its well as for the Allies is shown to be impracticable, the Australian government sees no need to raise unnecessary legal difficulties or run a future security risk by resolving in a piece-meal fashion matters which should properly be decided by a Peace Conference.

  1. See footnote 2, p. 896.