740.00119 PW/5–1749: Telegram
The Secretary of State to the Embassy in the Philippines
612. Reurtels 1284, May 17,1 and 1295, May 17. While recognizing that emotional factors render Filipinos almost impervious to logic on some Japan questions, Dept desires Embassy and USIS take all feasible steps to explain and justify US reparations and level of industry position in hope of moderating Phil opposition and resentment. Materials for this purpose are already available to Embassy in text McCoy statement to FEC, aide-mémoire handed ten FonMins and background material provided for use in presenting aide-mémoire. Fol basic points shld, however, be especially stressed:
US policies and actions in Japan are on behalf of and in interest of all Far Eastern nations. Programs of democratization and reform in Japan adopted by FEC can succeed only if tolerable econ conditions [Page 751] obtain in Japan. US is naturally reluctant to have to provide approximately half billion dollars of econ aid to Japan annually from its own resources but has been willing to do so to make possible success of FEC programs which can alone produce peaceful Japan.
At same time US cannot indefinitely bear burden of Japan’s support. It must assist the re-attainment by Japan of self-supporting economy at earliest possible time. Further reparations from deficit Jap economy wld obviously be inconsistent with this objective. Japan has been completely disarmed and US is determined that its capacity to make war shall not be permitted to re-emerge.
VOA broadcasting to FE roundup of US edit opinion on McCoy statement citing particularly fol para from N.Y. Times edit of May 15 (text entire edit contained May 16 Wireless Bulletin):
“In case of Phil, again taking that example, it shld eventually become clear that Phils has vastly more to gain by contd favorable assoc with a US that has been freed from Jap burden and by sound place in sound Pac economy, to which solvent Japan is essential, than the republic cld gain by practical payment of limited amt Jap reparations. Phils has nothing to gain from a straitened US or a bankrupt Japan.”
VOA commentary emphasizing points advanced second and third paras above.
It is suggested also that Amb2 on arrival state frankly to Quirino that US has contributed vast sums to Phil reconstruction since Japan’s surrender; that Dept is currently endeavoring secure additional Phil aid funds; and that he can state from his own knowledge of situation in Washington that unreasoning criticism of and opposition to US policies toward Japan by Phil Govt and people greatly increases difficulties which must be overcome by those here seeking promote Phil aid programs. He might inform Quirino Dept amazed his statement US might save its expenditures in Japan but for undue concern Japan’s welfare, adding that on reflection Dept sure he will realize the unfortunate results for Phils and all SEA that would flow from withdrawal US aid to Japan, which is not given out of concern for late enemy but as matter hard necessity in common interest all FEC nations.
Quirino may be advised, re his statement to you of May 12, that US directive to SCAP rescinding Advance Transfers directive of Apr 1947 stipulates that items already processed under latter directive shld be made available for removal.