740.00119 PW/6–349
The Chargé in Japan (Huston) to the Secretary of State
No. 356
[Received June 13.]
Sir: I have the honor to refer to this Mission’s telegram no. 174 of May 23, 1949, summarizing reactions to the recent announcement by the United States in regard to reparations from Japan, and to enclose1 copies of communications received from the Chinese and Philippine diplomatic missions in Japan, making representations concerning the implementation by General Headquarters, Supreme Commander for the Allied Powers, of the United States directive rescinding Joint Chiefs of Staff Directive no. 75,2 which set up the Reparations Advance Transfer Program.
The Philippine Mission, in its note of May 24, 1949, expressed general objection to a strict construction of the directive halting interim reparations transfers from Japan, on the triple grounds that reparations thus far received by the Philippines were inadequate in view of the war damage suffered by that country, that immediate halting of interim transfers would seriously interfere with Philippine industrialization plans based on reparations material, and that the benefit to Japan of immediate cessation of transfers would not compensate for the resentment aroused in the Philippines and the probable consequent damage to trade relations between the Philippines and Japan. This Mission, in its capacity as the Diplomatic Section of GHQ, SCAP, has made an interim reply to the Philippine Mission by note of May 26, 1949, and referred the Philippine request to the Office of the Civil Property Custodian, the section of headquarters having jurisdiction over reparations matters.
The Chinese Mission, in a note of May 25, 1949, briefly expressed its general objection to the halting of Japanese reparations transfers, and, after stating that final action on Japanese reparations must be determined by the Far Eastern Commission “and the Allied Nations concerned”, took up specific points in the SCAP implementation of the directive halting interim transfers. On the basis of a version of the United States directive allegedly received from the Chinese delegation to the Far Eastern Commission, the Mission protested SCAP action to halt the transfer of “items already processed” under Directive no. 75. Particular stress was placed on the Chinese desire to complete the transfer of electrical facilities from ten former Japanese arsenals, and of a 200-ton crane and 15,000 KVA power plant at Kure, which the Mission describes as urgently needed in Formosa.
[Page 765]The Chief of the Chinese Mission also addressed a letter to the Chief of Staff (SCAP) on May 20, 1949, making similar representations concerning the Kure facilities. This communication was forwarded by the Chief of Staff to this Mission, in its capacity as the Diplomatic Section of GHQ, with the request that a reply be made to the Chinese Mission substantially as follows:
“Orders to cease dismantling work were issued as a result of the withdrawal by the United States Government of JCS Directive no. 75 which established the Reparations Advance Transfer Program. Resumption of this work is not contemplated except through receipt of further instructions from the United States Government (underlined words crossed out in original) higher authority.”
The Mission accordingly addressed a “Diplomatic Section” note to the Chinese Mission, transmitting the foregoing information, on May 27, 1949.
This Mission has sent an interim reply to the Chinese Mission’s note of May 25, 1949, informing the Mission that the matter is under consideration in GHQ, SCAP. It is informally understood that headquarters proposes to take no positive action on the Chinese Mission’s requests concerning transfer of the facilities at Kure or other reparations items in the immediate future.
Although I have had several conversations during the past ten days with both General Chu, Head of the Chinese Mission, and Mr. Shen, his Minister-Counselor, neither of them has broached the subject of reparations. The Head of the Philippine Mission, Dr. Africa, has spoken to me on the subject somewhat casually, indicating resigned acceptance of the new situation by saying that he supposed the Philippine Reparations and Restitution Delegation in Tokyo might now be leaving for Manila and thus free some housing space for other Mission personnel. He added that the American announcement had stirred up popular sentiments in the Philippines to such an extent that he felt it was not unlikely that the Philippine people will now refuse to trade with Japan.
Respectfully yours,
- Enclosures not printed.↩
- April 4, 1947, Foreign Relations, 1947, vol. vi, p. 376.↩