560.AL/3–749: Telegram
The Secretary of State to the Acting Political Adviser in Japan (Sebald)
80. In preparing position reopening MFN Jap at 3rd session Gatt,1 Dept has requested US Missions Commonwealth countries, France, and Benelux determine through high level discussions acceptability to Govts to which accredited of protocol similar that for Ger2 and assurances or substantive modifications if any deemed essential; replies awaited. Dept has not submitted draft agreement to above [Page 683] countries; so far discussions in terms agreement paralleling provisions Ger protocol.
Dept believes modifications may be required if other Govts insist more comprehensive assurance against “unfair” Jap competition or if yen exchange rate established.
Dept might at some stage consider, or it might be requested by other Govts, making rights and obligations of agreement entirely reciprocal. If this were done presumably fol changes in Ger protocol would need to be considered:
- 1.
- Art I made reciprocal in name of SCAP so long as he exercises recognized authority in occupation of Jap.
- 2.
- Art II omitted.
- 3.
- Art III words fol “Art I” through “such undertaking” omitted. Art would read “The undertaking in Art I shall be without prejudice … etc.”3
- 4.
- Art V Paras 1 and 2 would probably be redrafted to make clear both as to entry into force and termination that agreement is between SCAP and “each other signatory.”
- 5.
- Interpretative note 4 would be made reciprocal by addition sentence giving Jap same right.
- 6.
- Interpretative note 3 omitted.
- 7.
- Interpretative note 1 may be withdrawn on assumption a yen exchange rate is established. If not it may be necessary to substitute for it a proviso to effect entry into force agreement hinges on establishment such rate.
Views Pol Adviser and SCAP urgently requested re feasibility and desirability making agreement reciprocal along foregoing lines.
In any event Dept desires add at beginning Para 3 Art V fol: “Each signatory agrees to consultation with any other signatory at any time with respect to problems which may arise in connection with application of this agreement.”
Dept assumes SCAP prepared send informal observer to Annecy assist negotiations. Dept present thinking this point is not to change from Ger pattern unless pushed by other Govts or change found of significant negotiating value.
- For documentation on this subject, see vol. i, pp. 651 ff.↩
- For agreement on most-favored-nation treatment for areas of western Germany under military occupation, signed at Geneva, September 14, 1948, see 62 Stat. (pt. 3) 3653.↩
- Omission as indicated in the source telegram.↩