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United States Department of State / Foreign relations of the United States, 1949. The Far East and Australasia (in two parts)

Northeast Asia: Japan,   pp. 601-939 PDF (132.7 MB)

Page 899

re-entry of Japan into a dignified place within the community of
  0. That Article 39 and annex 7 should be re-examined in the light
of the bitterness which would be ,aroused if provision is made for the,
partial recovery from Japan for losses sustained by United Nations
nationals resulting from damage to property in Japan, while losses
sustained by United Nations nationals in areas occupied by the Japa,-
nese or in areas of the former Japanese empire to be ceded to other
nations under terms of the treaty are excepted from claim or recovery.
That such provisions are .entirely inconsistent with the intent and
effect of Articles 31, 32 and 36 of the treaty draft and could not fail
to be challenged as a move designed to afford special protection to
British and American investments in Japan, providing the Soviet and
a Communist China with a major propaganda advantage. That the
imposition of such a burden upon Japan would most seriously impair
the chance for her economic rehabilitation and thereby eventually
confront the American people with the possibility of having to assume
this financial burden either directly or indirectly.
   c. Article 41, paragraph 3 is considered unrealistic for the reasons
 not only that the Japanese economy most probably could not stand
 the tremendous drain consequent upon compensation for Japanese
 'assets abroad, but -also because it attempts to legislate upon a matter
 which might better be left for determination between tie Japanese
 Government and its nationals.
   I fully concur with General MacArthur's observations set forth in
 a, b, and c above.
   Although I propose to submit by airmail mission's comments in
 greater detail land on an uarticle by 'article basis,' I believe it might
 helpful to give our tentative reactions: While the mission is agreed
 that it would be preferable to have a shorter treaty with less emphasis
 upon technical matters, we feel that to a large extent the problem is one
 that must be solved in consequence of the needs, desires land recom-
 mendations of the many Washington agencies concerned, as well as
 with a view to presenting an acceptable draft to our Allies. On the
 other hand, we are somewhat concerned that the November 2 draft
 seemingly represents the maximum conditions which the United States
 seeks to place upon Japan, and that it leaves little room for b'argaining
 purposes should a "harder" treaty be desired by our Allies. We
are, of
 course, fully aware that the security provisions have not yet been
 formulated and that revisions of fundamental provisions in the draft
 may be affected thereby.
    The following are our preliminary comments concerning those pro-
  visions which we 'consider of high importance:
    Article 4: Presumably security provisions will effect eventual de.
  termination Taiwan and adjacent islands. Suggest consideration ques-
  tion of trusteeship for Taiwan consequent upon plebiscite.
    'Despatch No. 800, November 19, not printed.

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