694.001/6–2551: Telegram
The Secretary of State to the United States Political Adviser to SCAP (Sebald)
Topad 1811. For Allison from Dulles. Reurtel 2234, June 25. Gratified report your mtg with Gen Ridgway and his sympathetic approach.
Believe any copy of text given Iguchi shld be somewhat paraphrased or possible some omissions so that as with copies UK circulating to Commonwealth countries it can be stated that no complete text has yet been given out.
Re statement Chi participation1 public issue has been suspended at our suggestion as we wanted consolidate opinion here in advance of a public statement which wld no doubt elicit formal counterblast from Taipei. It is agreed with Morrison this suspension of pub involves no shift in our substantive position and in any informal talks we will adhere wholly to spirit and intent of draft statement.
Agree that proceeds BIS shares not Jap assets in neutral countries particularly since it is assumed that the shares wld be sold and proceeds remitted to Jap before treaty comes into force.
Morrison advises Brit Cabinet approved draft treaty June 21 “subj to single point outstanding about shipping which is still causing us anxiety”. He advises Clutton instructed concert with you to “see whether there is not some constructive solution for our difficulties on this point”. Earlier cable2 from Emb London referred to some voluntary Jap restriction on ship-building. I do not understand there is any question of this but rather that the Jap wld officially indicate possibilities of building for Jap registry cld not within 4 years provide sufficient Jap shipping so as to make appropriate or meaningful the addition to Art 12 which UK had proposed and which wld have prohibited absolutely irrespective of exchange position Jap preferential use of Jap shipping.
Re Art 14 (a) (1) we might omit reference to “econ reconstruction” on theory that this not needed as in case of Italy because by time Jap treaty in force econ reconstruction will have been largely accomplished but this is furthest I wld go to meet Romulo.
We still have not obtained final approval US Govt account further Pentagon considerations. However fully confident of satis outcome altho probably not finalized before weekend and then some minor language changes may have to be cleared with UK. However hope begin distribution treaty draft to FEC countries by June 5. [Dulles.]