890.0146/12–1249
Memorandum by the Assistant Secretary of State for
Far Eastern Affairs (Butterworth) to the Secretary of State
confidential
[Washington,] December 12,
1949.
In commenting upon Mr. Oliver’s report1 you asked whether more push is necessary to
remedy the situation in the Ryukyus.
Mr. Voorhees visited Okinawa in September, having been briefed before
his departure by Mr. Oliver. He was extremely dissatisfied with the
situation as he found it, and has personally directed many of the
measures now being taken. The most important of them are set forth
below.
They represent only the start of an adequate program in the Ryukyus.
Questions which require greater attention are the recruiting of
competent personnel, including the possibility of putting in a
civilian as head of the civil administration; and the scale of
pay-as-you-go by the military which presently omits land rental and
provides extremely low wages. The Department of the Army appears to
be doing all that can be expected at the moment, however, and I do
not think that more pressure would be useful.
1. There is a new top administration on the Islands and some of the
worst officers have left. Although he has not yet been able to
recruit an able staff, General Sheetz, unlike his predecessor, has
taken a strong interest in his military government
responsibilities.
2. At my instance, the Department of the Army has sent a proposed new
directive, substantially as drafted in the Department of State to
CINCFE for comment requesting
urgent consideration (copy attached). This directive covers most of
the abuses which have been reported and even before formal issuance
should afford badly needed guidance to the field.
3. A $73,000,000 construction program, including $22,000,000 for
housing, is under way with procurement of materials and services
being made as far as possible in the Ryukyus and Japan. Although
primarily for military purposes, this will have considerable effect
on the civilian economy.
4. A revised program has been developed for the expenditure of GARIOA appropriations in the current
fiscal year, amounting to approximately $25,000,000, largely for
economic rehabilitation and including housing for military
government personnel. The latter is basic for the recruiting of
abler personnel.
5. A trade agreement has been made with SCAP under which purchases up to $9,000,000 will be
made by the Ryukyus and up to $1,000,000 by Japan.
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6. An agricultural mission sent out by the Department of the Army has
made an excellent report to the Commanding General late in November
which he declared his intention to carry out. The report stresses
the administrative measures necessary to improve the condition of
the Ryukyuan economy, which is almost entirely agricultural. The
principal such recommendation is that a central native
administration be established with responsibility for the entire
area, and that the military administration establish parallel
divisions. The report also stresses the necessity to keep land
occupancy by the military to a minimum.
7. A financial and general economic team from GHQ, SCAP went to the
Ryukyus several weeks ago to make recommendations for a coordinated
economic and fiscal plan, covering problems of the exchange rate,
Ryukyus budget, wage levels, pricing of imports, etc. In view of the
varied types of U.S. expenditures and their significance for the
total economy, these are extremely complicated problems, and FE is seeking further information in
order to be of any possible assistance. It is understood that Mr.
Dodge decided not to undertake a study along these lines, because he
did not have opportunity to do it justice.
W. W[alton] B[utterworth]
[Annex]
Proposed Directive by the Joint Chiefs of Staff to the Commander in
Chief, Far East (MacArthur)
secret
[Washington,] 30 November
1949.
OUSFE
Proposed Directive From the Joint Chiefs of
Staff to
CINCFE
on Conduct of Civil Administration in the
Ryukyus
A. Responsibility
1. As a result of the terms of the surrender of the Empire of
Japan to the forces of the Allied Powers, and the principles of
international law governing the rights and duties of occupying
powers, the Government of the United States is responsible for
the civil administration of the Ryukyu Islands, South of
Latitude 29° North. This responsibility is delegated to you and
will be executed pursuant to this directive and other
instructions from your government. The government of this area
by the United States will be termed “U.S. Civil Administration
of the Ryukyu Islands.”
2. You are authorized to redelegate the responsibility of U.S.
civil administration of the Ryukyu Islands to a subordinate
official designated as “Director for U.S. Civil Administration
of the Ryukyus”
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and to
issue to him appropriate instructions consistent with this and
subsequent directives.
B. General Policy
3. It is the policy of the United States to develop and maintain
on a long-term basis the facilities in the Ryukyu Islands by
reason of the importance of the Islands to the interests of the
United States. U.S. civil administration will be conducted on
the assumption of long-continued interest in such manner as to
develop and maintain the well-being of the civil population and
not prejudice ultimate decisions with respect to the
international status of the Islands and their form of
government.
4. The objective of the U.S. civil administration of the Ryukyu
Islands will be the establishment of a stable political and
economic structure stemming from and responsive to the will of
the people as exerted through democratic processes. The U.S.
civil administration will further the:
- (a)
- Economic and social well-being of the Ryukyus,
accomplished to the maximum extent by the efforts of the
Ryukyuans themselves, in order to insure civil tranquility
and to reduce to a minimum the deficit in the native
economy.
- (b)
- Broadening of the base of self-government through
legislative, executive and judicial organs established in
accordance with democratic principles, and the adoption of
basic laws promulgated by elected representatives.
- (c)
- Execution of a cultural and educational program designed
to foster development of the arts and sciences and
enlightened civic consciousness, with due regard for the
existing culture of the inhabitants.
C. Civil Administration
5. To the maximum extent compatible with U.S. objectives, U.S.
civil administration will be indirect and will operate through
Ryukyuan governmental authorities. To this end and pending
developments of higher organs of Ryukyuan self-government,
provisions will be made for:
- (a)
- The establishment of responsible native government at the
municipal level, subject to general supervision of the U.S.
civil government.
- (b)
- The establishment as soon as feasible of responsible
native government at the provincial level subject to the
general supervision of the U.S. civil administration.
Pending the development of such government, native advisory
bodies, preferably elected, will be established.
- (c)
- Appointment of a representative advisory council at the
highest level of Ryukyuan government to make recommendations
upon questions referred to it by the U.S. civil
administration.
- (d)
- Appointment or election of native counterparts to the
principal officers in the U.S. civil administration.
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D. Legal
6. You will cause the review of existing laws in effect in the
Ryukyus, both Japanese and military, and the codification of all
enactments supplementary to the basic Japanese Code, making the
rescissions and amendments and enacting the new legislation
necessary to effectuate the objectives set forth in this
directive.
7. Priority will be given to the registration of land titles and
the establishment of judicial machinery for the settlement of
disputes in connection therewith.
8. The necessary courts to enforce the criminal law and to try
and to determine civil disputes will be established, with
appropriate appellate tribunals. Subject to such regulations as
may be prescribed, native courts will have jurisdiction over
violations of the criminal law by other than nationals of the
Allied and associated powers. The jurisdiction of such courts
may be extended to offenses by such nationals. Courts of the
U.S. civil administration will be maintained with such civil and
criminal jurisdiction and codes of procedure as circumstances
may require.
E. Civil Liberties
9. Procedures will be established whereby the Ryukyuan people
will be guaranteed the basic liberties of democratic countries,
including freedom of speech, assembly, petition, religion and
the press, and security from unreasonable searches, seizures and
detention without trial.
F. Economic and Fiscal
10. A coordinated long-range economic plan will be developed in
consultation with appropriate U.S. departments and agencies with
maximum participation by the Ryukyuans with the object of
achieving Ryukyuan self-support at a level of living appropriate
to the achievement of United States objectives. It should
include:
- (a)
- Sound policies for the utilization and conservation of
Ryukyuan natural resources, including land reclamation and
improvement based on accepted principles of land
classification and use.
- (b)
- A program for developing on a long-range basis those
Ryukyuan industries which can be sources of exports or
reduce import requirements.
- (c)
- Full and equitable compensation by U.S. Forces and other
U.S. Government agencies stationed on the Islands for the
contribution to their support by Ryukyuan labor and other
economic resources.
- (d)
- Such foreign trade controls, e.g., export-import licensing
and exchange controls, as are appropriate in view of the
relative merits of minimizing governmental controls to
encourage free private trade, and the need to make the most
effective use of Ryukyuan resources.
- (e)
- Measures designed to stabilize the financial structure of
the economy, e.g., an adequate and equitable system of
taxation to support necessary Ryukyuan governmental
activities without recourse to deficit
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financing; a sound banking and
currency system; a single rate of exchange appropriate for
all foreign transactions; and the establishment of a
counterpart fund in the Ryukyuan budget control of which
shall be exercised by the U.S. civil administration with the
object of promoting economic development and fiscal
stability.
- (f)
- An adequate statistical agency.
G. Travel and
Communication
11. Subject to necessary regulations in the interest of military
security and to availability of facilities, travel and
communication to and from the Ryukyus will be freely allowed.
Emigration will be encouraged subject to necessary international
agreement.
H. Education and
Information
12. In view of the objectives outlined above, encouragement will
be given to the following:
- (a)
- Facilities for education with particular emphasis on
personnel and physical equipment.
- (b)
- Facilities for dissemination of public information;
and
- (c)
- A program to develop intelligent participation in the
responsibilities of democratic citizenship.
I. Relationships Among the
U.S. Forces, the Civil Administration and the Native
Population
13. Proclamations, ordinances, orders, etc., of the U.S. Forces
affecting the inhabitants or the local economy, will normally be
issued by or under the authority of the Director of the U.S.
Civil Administration.
14. The native police may be authorized to arrest and detain
members of the U.S. Forces and nationals of the Allies and
associated powers observed in the commission of a felony in the
absence of military police. In such an event, the arrested
person will be turned over to the nearest military installation
immediately.
15. In view of the acute shortage of arable land to support the
local economy, the occupancy and use of such land by the U.S.
Forces, will be kept to the absolute minimum consistent with the
accomplishment of U.S. military objectives.
16. All U.S. Forces personnel and dependents stationed in the
Ryukyus will be made aware of the basic U.S. objectives in the
Ryukyus to the end that a mutual feeling of friendship and
respect is fostered between the natives and U.S. personnel.
J. Appropriations
17. You will prepare and transmit to the Department of the Army,
from time to time as requested, estimates, with complete
justification, of appropriations from U.S. funds for government
and relief in the Ryukyu Islands and economic rehabilitation
necessary to defray any deficit in the Ryukyuan economy and will
be responsible for the expenditure under approved procedures of
funds made available for such purposes.
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18. The effective utilization of all U.S. surplus and excess
supplies made available to the civil economy is essential.
Justification in budgets and programs will reflect the realistic
usage of these supplies whenever received.
K. Vesting of Property
19. Title to property in the Ryukyus belonging to the Japanese
Government, Japanese corporations, and Japanese individuals
resident in Japan shall in general be vested in the U.S. civil
administration and such property shall be administered and
disposed of for the benefit of the Ryukyuan people. Legislation
to this end, to be promulgated by the U.S. civil administration,
containing such exceptions as may be appropriate for small
individual holdings, corporations locally owned, etc., will be
prepared and submitted to your government before promulgation.
All other property which has been taken under control, except
property under requisition by the Armed Forces, will be returned
as soon as feasible to the control of the owners or their
agents.
20. All objects of a cultural, religious, and historical
character in the Ryukyu Islands will be preserved and
protected.
L. Previous Directives
21. Any provisions of present directives conflicting with the
foregoing are to be regarded as modified accordingly.
