611.94/2–952: Telegram

No. 504
The United States Political Adviser to SCAP (Sebald) to the Department of State

secret priority

1660. CX 63235. This is Sebald’s 1660. Rptd SecDef. No. 17. From Rusk. Fol is new text art 23 which we anticipate using as basis for discussion with Japs:

  • “1. It is agreed that the US will bear for the duration of this agreement without cost to Japan certain basic expenses of the US Armed Forces stationed in Japan, including pay and allowances, rations, military equipment, and transportation to and from Japan.
  • “2. It is agreed that Japan will:
    (a)
    Furnish for the duration of this agreement without cost to the US and make compensation where appropriate to the owners and suppliers thereof all facilities and areas as provided in art two, para one, including facilities and areas jointly used such as those at airfields and ports, utilized by the US for purposes of this agreement.
    (b)
    Make available without cost to the US, until the effective date of any new arrangement reached as a result of periodic re-examination, an amount of Jap currency equivalent to $155 million per annum for expenses under this agreement. The rate of exchange at which yen payments will be credited shall be the official par value, or that rate most favorable to the US authorized by the Jap Govt or used in any Jap Govt transaction with any party, and which, if both countries have agreed par values with the International Monetary Fund, is not prohibited by the arts of agreement of the fund.
  • “3. It is agreed that arrangements will be effected between the Govts of Japan and the US for accounting applicable to financial transactions arising out of this agreement.” Rationale and comments fol in later telegram.

Sebald