694.001/6–2551: Telegram

The United States Political Adviser to SCAP (Sebald) to the Secretary of State

secret
priority

Topad 2234. For Dulles from Allison. Had profitable hour’s meeting with General Ridgway this morning in presence of Sebald and Chief of Staff at which time I reviewed in some detail negots in UK Paris and elsewhere. General Ridgway appeared understand reasons for changes in treaty draft and he expressed great admiration and appreciation of work you had done in this respect. The General gave immediate and wholehearted approval to my conducting talks with Yoshida and other Japs and expressed his willingness be of any possible assistance. All elements here been disturbed at Congo Basin provisions but after explanation of strength of Brit feeling on this point appeared reconciled.

[Page 1147]

This afternoon we had hour’s talk with Iguchi and Nishimura when I outlined for them progress in negots and gave detailed review of present draft. I have not yet given Iguchi copy of London text but intend to do so shortly unless you perceive objection.

Problem of Chi participation discussed and Jap seem to realize delicacy of matter. Although apparently somewhat reluctant have matter left their decision, will undoubtedly agree. In this connection what has been fate of proposed statement on Chi participation and Formosa? UK High Commissioner in Delhi said he had been informed statement was to be issued in Washington last Wed or Thur and showed me a text1 which eliminated bracketed portions of text1 I have with me. Iguchi said that if statement on Chi participation was to be made public he hoped it wld be possible to have an advance copy for Yoshida’s info. I stressed to Iguchi fact that powers willing in effect leave question of Chi to Jap showed great faith in Jap and did much offset some of more unpalatable portions present treaty draft. While Iguchi obviously disturbed at decision re Congo Basin Treaty and transference Jap assets in neutral and ex-enemy countries to Red Cross, he seemed concur in my arguments that these provisions wld go far toward creating favorable atmosphere for re-emergence of Jap both polit and econ. He stated that after he had had an opportunity see exact text Yoshida wld probably desire make some written comments. With respect to BIS he raised question whether funds obtained from sale of shares wld be treated as Jap assets in neutral countries or whether they wld definitely be made available to Jap Govt. I told him my understanding was that this money wld have no strings to it and that it wld return to Jap but suggest you may wish consider some additional phrase which will make this absolutely clear.

Iguchi has given me written memoranda2 on question of Phil reparations, and problem of shipbuilding capacity which I have not yet had opportunity to study. He promises complete text2 tomorrow afternoon on Jap legis on compensation for allied property in Jap. Fraleigh3 will go over the text with Jap experts and we will report on it later.

Yoshida out of town at present but returns Wed evening and we have tentative appointment with him for 3 p. m. Thur.4 Expect to see Glutton 3 p. m. tomorrow and go over treaty problems with him.

Wld appreciate receiving advice as to when it is expected treaty draft will be given FEC countries. [Allison.]

Sebald
  1. Reference uncertain.
  2. Reference uncertain.
  3. None found in Department of State files.
  4. None found in Department of State files.
  5. Mr. Charles A. Fraleigh of the Office of Northeast Asian Affairs, then in Japan to discuss with Japanese officials legal aspects of the treaty draft.
  6. June 28.