694.001/7–751: Telegram
The United States Political Adviser to SCAP (Sebald) to the Secretary of State
Topad 64. For Allison from Fraleigh. Re Mistel 38 July 6. Yoshida considers best method handling treaty compensation provision is by ltrs from him to Mr. Dulles tentatively worded as fols:
[Page 1181]“In connection with conversations which we have had about compensation for the loss of or damage suffered by property in Japan owned by Allied powers or Allied natls, I am glad to advise you as follows:
“The Jap Govt believes that if it takes voluntary measures for adequate settlement of this problem, such action will serve to contribute toward the establishment of good will between the Allied powers and their natls and Japan and the Jap people. Accordingly, it is the intention of the Jap Govt to take steps for enacting a law toward that end as soon as practicable. Its contents are indicated in the draft of an Allied powers property compensation law enclosed herewith. I hope and trust that it will meet satisfactorily the desires of all the Allied powers and their natls concerned.”
Jap agreeable to fol tentative wording of Art 15 (a) of draft treaty in respect this matter: “Has suffered injury or damage, compensation will be made on terms not less favorable than those contained in the draft Allied powers property compensation law mentioned in the Jap Govt’s communication dated July (date of above ltr) 1951.”
Yoshida willing to forward such ltr after approval by Cabinet on July 10. He desires text of draft law not be made public until shortly before its submission to Diet, probably in Sept. Nishimura suggests outline of law may be made public in Japan prior that time and is aware text of draft law will be shown interested govt and portions of law might be shown interested individuals.
Your comments on ltr and above procedure desired soonest.
Arriving Washington July 9 with full details. [Fraleigh.]