740.00119 FEAC/5–1849: Telegram

The Secretary of State to the Acting Political Adviser in Japan (Sebald)

confidential

215. Subj is Summary FEC Mtg, May 12, 1949.

Jap Membership in Internatl Convention of Telecommunications ( FEC 334)

Phil member requested postponement.

Jap Participation in Internatl Relations ( FEC 339)

Re US proposal to Fr member stated his Govt wld like to make clear that Basic Post-Surrender Policy did not provide that FEC be progressively deprived, as regards control of Jap Fon relations, of powers given it by Moscow Agreement. Result of Amer proposal, as now worded, wld be to give SCAP discretionary powers in field of Jap Fon relations, thus depriving Govts represented at FEC of right to be heard on these matters. Such discretionary powers cannot, however, be delegated to SCAP by FEC as neither Comm nor individual Govts possess such powers. In order to meet wishes of Amer Govt and facilitate task of occupation authorities, Fr Govt wld be willing to envisage extension of powers given to SCAP by policy decision, Jun 19 [9], 1948 on Attendance at Inter-Governmental Conferences subj fol conditions: a) in each case, SCAP shld notify Comm—for its info—of any decision taken re Jap participation in Internatl non-polit conferences; b) any commitments which might be subscribed by Jap Govt in bilateral or multilateral agreements of technical character shld be ultimately submitted to FEC for approval. Opinion of Fr Govt, such formula, while taking into account juridical considerations which cannot be overlooked, wld have advantage of keeping statute of occupied Jap in line with present statute of Germ.

Economic Stabilization in Jap

No discussion.

Level of Economic Life in Jap ( FEC 242/32, FEC 297/10)

USSR Member urged that US present its position. US Member indicated he had statement to make under other business.

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Priority for Patent Applications in Jap ( FEC 333/7)

USSR Member in reply to US statement of Apr 26, 1949 again attacked legality of interim directive and alleged that US accepts only those actions of FEC which it considers acceptable to US, but that when FEC does not approve policy decided by US, US states that FEC is unable to act and under one or another pretext, orders SCAP to implement the policy desired by it.

NZ Member again suggested this item might well be removed from agenda after lapse of week.

Other Business

US Member made statement on Jap reparations and Level of Industry which was transmitted to SCAP by Dept of Army in WCL 39888, May 12, 1949. Only comment was from Phil Member who stated his Del was stunned by this announcement. They still believed in validity of reasons which prompted statement on Potsdam Declaration that wld permit exaction of just reparations in kind in Jap and still hoped the Comm can work out or develop policy decisions that will implement Potsdam Declaration.

UK Member stated UK supports US position that no further policies re deconcentration program are needed although he maintained vigilance and care shld be exercised in redistributing assets of Zaibatsu in accordance with relevant principles of Basic Post-Surrender Policy.

US Member invited attention to statement SCAP on second anniversary of Jap constitution.

Acheson