Foreign Relations of the United States, 1952–1954, China and Japan, Volume XIV, Part 2

794C.0221/7–1554

No. 777
The Secretary of Defense (Wilson) to the Secretary of State

top secret

Washington, July 15, 1954.

Dear Mr. Secretary: On 21 April 1954,¹ Under Secretary of State Walter B. Smith and the then Deputy Secretary of Defense Roger M. Kyes reached agreement on all of the provisions of the proposed revised Directive for the U.S. Civil Administration of the Ryukyu Islands.

The proposed revised directive was discussed briefly at the National Security Council meeting of 17 February 1954.² A final decision was not reached at that meeting due to your absence because of the Berlin Conference. NSC Action No. 1047 resulting from the meeting states:

“Noted that the President would make a final decision regarding the draft directive after further discussion with the Secretary of State and Defense.”

In consonance with this NSC action, there is attached a letter to the President³ recommending that he approve the proposed revised directive and, in addition, approve General John E. Hull, USA, CINCFE, as Governor of the Ryukyu Islands. This letter also advises the President of Defense–State agreement on all provisions of the proposed revised directive; notes the provision in Paragraph A2 thereof for the submission of the name of the proposed Governor of Ryukyu Islands by the Secretaries of Defense and State to the President for his approval;⁴ informs the President that under the current Joint Chiefs of Staff Directive (issued in 1950) covering the administration of the Ryukyu Islands, General Hull, CINCFE, is the Governor of the Ryukyu Islands; and notes that the proposed revised directive would supersede the current Joint Chiefs of Staff Directive.⁵

You will note that the letter to the President has been prepared for both our signatures. I would appreciate your adding your signature to that of mine and returning the letter to me for forwarding to the President.

There is attached a copy of the proposed revised directive for your retention.

Sincerely yours,

C.E. Wilson

[Attachment]

Draft Directive for United States Civil Administration of the Ryukyu Islands

confidential

[Washington,] April 23, 1954.

Preamble

Under Article 3 of the Treaty of Peace with Japan the United States is exercising all and any powers of administration, legislation, and jurisdiction over the territory and inhabitants of Nansei Shoto south of 29° north latitude, including territorial waters, except with respect to the islands in the Amami Oshima group, the administration of which the United States has relinquished to Japan.

The remaining islands of Nansei Shoto specified in Article 3 of the Treaty of Peace with Japan over which the United States continues to exercise authority (hereinafter referred to as the Ryukyu Islands) are of critical strategic importance to the security of the free world. For this reason the United States has developed in these islands a system of military bases and other installations to serve the defense of the entire Pacific area. Pending the establishment of enduring conditions of peace and stability in the Far East, the United States will maintain the degree of control and authority now exercised with respect to the Ryukyu Islands so as to enable the United States to contribute effectively to the maintenance of security in the area.

a. u.s. civil administration of the ryukyu islands

1. Prior to the coming into effect of the Treaty of Peace with Japan the Ryukyu Islands were administered as enemy territory under U.S. military occupation. With the effective date of the Treaty the Islands ceased to be enemy territory. However, the administrative, legislative and judicial powers over the Islands, conferred on the United States by Article 3 of the Peace Treaty have been and will continue to be exercised by the Department of Defense. The Secretary of Defense may delegate to such Department of Defense agencies as he deems appropriate responsibility for Civil Administration in the Ryukyu Islands. The Department of State, in consultation with appropriate agencies of the Department of Defense, will in the future exercise all powers of the United States with respect to the relations of the Ryukyu Islands with foreign governments and international organizations.^*

2. The responsibility for the administration of the Ryukyu Islands will henceforth be executed pursuant to this directive and such further instructions as may be issued from time to time by the Department of Defense in order to facilitate the achievement of the objectives set forth in this directive. The administration of this area by the Department of Defense will be termed the “United States Civil Administration of the Ryukyu Islands” (USCAR), hereafter called the Civil Administration. The chief official of the United States Civil Administration shall be a Governor, who will be an active member of the United States Armed Forces. His name will be submitted to the President by the Secretary of Defense and the Secretary of State for approval.

b. mission and objectives of the u.s. civil administration

1. The mission of the U.S. Civil Administration of the Ryukyu Islands is to assure that this strategic area will contribute effectively to the peace and security of the free world. The successful consummation of this mission requires the well-being of the Ryukyuan people, their achievement of political and economic stability and the maintenance of good relations with their neighbors. It is the primary responsibility of the U.S. Civil Administration of the Ryukyu Islands to foster conditions in the islands which will enable the U.S. Armed Forces to carry out their mission successfully.

2. In pursuance of this mission the basic objectives of the Civil Administration will be:

(a) To encourage and strengthen democratic tendencies in governmental, economic and social institutions of the Ryukyu Islands.

(b) To encourage the development of an effective and responsible government, based on democratic principles and supported by a sound financial structure, the administration of which considers, among other things, the cultural and educational ties between the Ryukyu Islands and Japan.

(c) To assist the Ryukyuan people in achieving a viable economy which will permit the maintenance of a standard of living reasonably comparable to that of Japan and which can ultimately be sustained by the efforts of the Ryukyuan people.

(d) To assist the Government of the Ryukyu Islands and the Ryukyuan people in achieving those standards of living, education, public health, and public safety requisite to the achievement of the objectives noted above.

c. authority of u.s. civil administration

1. The U.S. Civil Administration will govern through an indigenous Government of the Ryukyu Islands (GRI, see D. below); but the Civil Administration may, if such action is necessary for the fulfillment of its mission, veto or suspend laws or any other acts of the Government of the Ryukyu Islands or its local subdivisions; promulgate laws, ordinances or regulations; review or otherwise modify any decision, judgement, or sentence of the courts; remove officials from office. The U.S. Civil Administration may resume, in whole or in part, the exercise of full authority in the Ryukyus, if such resumption of the exercise of authority appears indispensable for security reasons. Exercise of authority conferred by this paragraph shall be promptly reported to the Secretary of Defense, who shall inform the Secretary of State.

2. In exercising the powers enumerated in the preceding paragraph the Civil Administration will preserve in all its acts to persons in the Ryukyu Islands the basic liberties enjoyed by people of democratic countries, including freedom of speech, assembly, petition, religion, and press, and security from unreasonable searches and seizures, and from deprivation of life, liberty or property without due process of law.

d. the government of the ryukyu islands (gri)

1. There will be maintained a central government, and governments at the municipal level. The central government shall be known as the Government of the Ryukyu Islands.

2. The Government of the Ryukyu Islands shall conform to the general principles of democratic self-government.

3. The legislative power of the Government of the Ryukyu Islands, except as otherwise provided herein, shall be vested in a legislative body whose members are elected by the people of the islands under procedures established by the legislative body. The legislative body shall exercise legislative powers which extend to all subjects of legislation of local application. The legislative body shall be the judge of the selection and qualification of its own members and shall choose therefrom its officers and determine its rules and procedures. The legislative powers of the municipal governments shall be exercised by local legislative bodies elected by the inhabitants of the municipalities in accordance with procedures established by the Government of the Ryukyu Islands.

4. Executive officers of the Government of the Ryukyu Islands and of the municipal governments shall be elected either directly or by their respective legislative bodies, as determined by the legislative body in accordance with rules and procedures established by such body. The time of an election for the Chief Executive of the Government of the Ryukyu Islands shall be subject to approval by the Governor.

5. A system of courts will be maintained by the Government of the Ryukyu Islands, including civil and criminal courts and appellate tribunals. These courts shall exercise jurisdiction over all resident Ryukyuans. Their jurisdiction will be extended, at the discretion of the Civil Administration, to include any other persons in the Islands as rapidly as compatible with the capability of the Ryukyuan courts to handle such cases. Their jurisdiction will not be extended to non-Ryukyuan civilian officials and employees of the U.S. Government and their dependents, to members of the U.S. armed forces and their dependents or to any other persons subject to the “Uniform Code of Military Justice”, Article 2, paragraphs (1) through (11).

6. In addition to the aforementioned courts Civil Administration tribunals will be convened to exercise civil and criminal jurisdiction over non-Ryukyuans, except those subject to Military Law or those over whom Ryukyuan courts may have been assigned jurisdiction. These tribunals may be called upon to exercise jurisdiction over Ryukyuans in specific cases of particular importance affecting the security of the U.S., its property and/or its personnel. These tribunals will function in accordance with proclamations, ordinances, and directives promulgated by the Civil Administration.

e. codification of ryukyuan law

The Civil Administration will advise and assist the Government of the Ryukyu Islands with respect to the enactment and effective administration of civil and criminal codes and the codification of Ryukyuan laws, ordinances and regulations. In carrying out this responsibility the Civil Administration should give recognition to the desirability of correlating the Ryukyuan legal system, including the civil and criminal codes, with the present legal system of Japan.

f. administration of economic affairs

1. The Civil Administration will assist and encourage the Ryukyuan Government to establish and maintain a long-range economic program through the development of the resources of the Ryukyus. This program would be designed to establish an economy that will support a standard of living reasonably comparable to that of Japan. This program should include but not be limited to assistance in the development of:

(a) All suitable forms of agriculture, fishing, industry and commerce under a system of free, competitive enterprise.

(b) A sound policy for the conservation and utilization of the natural resources of the Ryukyuan Islands, with special emphasis on land reclamation and improvement and the development of scientific methods of agriculture.

(c) A long-term basis of Ryukyuan industries and natural resources with a view to reducing import requirements and increasing exports.

(d) Ryukyuan foreign trade and the encouragement of foreign investment in the Ryukyuan Islands. Recognition should be given to the fact that Japan is the foremost importer from the Ryukyuan Islands and the foremost exporter to the islands. Travel by business men between the islands and Japan should be encouraged.

(e) A stabilized financial structure based on an equitable system of taxation adequate to support the Ryukyuan Government, a sound banking and currency system, including a single rate of exchange appropriate for all foreign transactions with the ultimate objective of free convertibility.

(f) Protective labor legislation defining standards of hours, minimum wages and working conditions and the encouragement of the formation of organizations of employees along democratic lines which the Civil Administration determines to be beneficial to the Ryukyuan people.

2. All local currency revenue obtained from the sale of GARIOA supplies or received by the Civil Administration as a result of GARIOA investments will be deposited in a special fund. This fund may be used with the approval of the Civil Administration for the following purposes:

(a) Minimum essential support of the Government of the Ryukyu Islands, pending the development of adequate revenues.

(b) Reasonable local currency expenses of the Civil Information and Education Program.

(c) Economic rehabilitation, including but not limited to the extension of loans to agriculture and private enterprises which will expand domestic production and services and promote economic self-support.

(d) Public works, capital improvements and disaster relief conducted by the Government of the Ryukyu Islands with the approval of the Civil Administration.

g. administration of civil information and education

1. The Civil Administration will conduct a civil information and education program, the primary purposes and principles of which are as follows:

(a) The skills and facilities available through the program will be utilized in all possible ways to facilitate and hasten achievement of the basic objectives of the Civil Administration, and to assist the components of the Civil Administration in the accomplishment of specific projects and programs.

(b) The civil information and education program will give strong encouragement and assistance to the development, among the Ryukyuan people, of competence and willingness to assume progressively greater responsibility in the conduct and support of civil affairs.

(c) The civil information and education program will provide advice and counsel to Ryukyuan educational institutions at all levels, encouraging the establishment and maintenance of an educational system appropriate to the needs and capabilities of the Ryukyuan people and to their Japanese heritage.

(d) In fulfilling the other objectives set forth in this section the civil information and education program will strive to create among the Ryukyuan people attitudes of understanding, friendship, trust, and common interest relative to the United States and other members of the free world community.

h. administration of public health and welfare

The Civil Administration will cooperate with the Government of the Ryukyu Islands to secure satisfactory standards of public health and welfare for the Ryukyuan people. The Civil Administration may contribute, out of available funds, to the maintenance of such standards.

i. administration of public safety

The Civil Administration will advise and assist the Government of the Ryukyu Islands and the local governments to establish public safety systems which will assure the peaceful maintenance of law and order in a manner which will safeguard the fundamental rights of the Ryukyuan people.

j. procurement and use of real property

1. The exercise of full governmental powers in the Ryukyus on the basis of the Peace Treaty with Japan provides authority for the Civil Administration to utilize the public property of the Japanese Government in the Ryukyuan Islands as the United States authority designated to exercise the United States powers of administration, legislation and jurisdiction in the islands. The Civil Administration may in its discretion permit the Government of the Ryukyu Islands to use or dispose of such property on such terms and conditions as it determines.

2. The Civil Administration will be the U.S. agency responsible for the acquisition of real estate and other facilities in the Ryukyu Islands required for the use of United States Government agencies. Property for the use of United States Government agencies will be acquired by purchase or lease, negotiated by the GRI when appropriate, with the owners of the property. In addition, when appropriate and when funds have been authorized for the purpose, use of certain property for so long as it may be needed by the United States may be procured by the acquisition of easement interests in such property, full compensation in the amount of the appraised value of the property being made initially to the owners. In the event that purchases or easements for property cannot be negotiated on equitable and reasonable terms, the Civil Administration shall determine, after consultation with local authorities and the Government of the Ryukyu Islands, whether the property is required for use by the United States. The Government of the Ryukyu Islands shall acquire for the United States the necessary leasehold or easement interests in the property by the exercise of the right of eminent domain in condemnation proceedings and the United States shall make reasonable and prompt compensation. The condemned property shall be made available to the United States by the Government of the Ryukyu Islands or acquisition may be affected by the Civil Administration directly.

3. The Civil Administration in determining the facilities and areas to be made available to the United States armed forces in carrying out their military mission shall give full consideration to the effect which such determination may have on the economic and social life of the Ryukyuan people and give adequate respect to the property rights of the individuals concerned.

4. The Civil Administration will act as the agent of the United States in compensating private owners of real estate or other property for the use of their land and/or other property subsequent to July 1, 1950.

5. The Civil Administration will advise and encourage the Ryukyuan Government in developing and maintaining adequate records of land titles.

6. Nonresident individuals or corporations owning real estate in the Ryukyu Islands which is not needed by the United States Government may continue to control such property, if it is reasonably utilized to the benefit of the Ryukyuan economy. Should these owners decline to permit such use of their property, the Government of the Ryukyu Islands may, at the direction of the Civil Administration, condemn the land and use it for the benefit of the Ryukyuan economy.

k. supplementary instructions

1. The Civil Administration will assist the Government of the Ryukyu Islands in the development of a program to resettle Ryukyuans, who have been deprived of land by the requirements of U.S. military forces, within the Ryukyuan archipelago and other suitable areas.

2. The Civil Administration will have prepared and will transmit to the Department of Defense from time to time, as requested, estimates, with complete justification, of appropriations from United States funds for the U.S. Civil Administration of the Ryukyuan Islands. It will be responsible for the expenditure, under approved procedures, of funds made available for such purposes. Monthly progress reports will be prepared and submitted to the Department of Defense.

3. All United States agencies in the Ryukyu Islands will abide by and conform to Civil Administration ordinances and directives.

4. JCS directives for Civil Administration of the Ryukyu Islands, previously issued, are superseded by this directive.

5. The proclamations, ordinances and directives heretofore issued by the Civil Administration will continue in force and effect until amended or rescinded pursuant to the terms of this directive.

l. fiscal relations between the commander in chief, far east, and the government of the ryukyu islands and the ryukyuan people

Fair and prompt compensation will be made to the Government of the Ryukyu Islands, and/or to the Ryukyuan people for the use of Ryukyuan land, labor or other Ryukyuan economic resources by U.S. agencies. The question of compensation for the use of land will be kept under review in the light of the economic position of the Ryukyus.

Supplemental Instructions to the Governor, Ryukyu Islands⁶

(The following supplementary instructions will guide the Governor, Ryukyu Islands, in exercising the authority assigned by provisions of Section C, Authority of the U.S. Civil Administration, “Directive for U.S. Civil Administration of the Ryukyu Islands.”)

In exercising its powers the Civil Administration will maintain close contacts with Ryukyuans in responsible and influential positions. Within these contacts it will be appropriate for the Civil Administration to provide information, assistance and guidance rather than to exercise authoritative prerogatives. Every effort will be made, through such counsel and consultation methods, to insure that final actions by the Government of the Ryukyu Islands and its functional and local subdivisions will embody solutions acceptable to the Civil Administration. This will considerably reduce the necessity for the Civil Administration actually to take the extreme step of vetoing legislation, nullifying an election, reversing an announced executive action, or otherwise overriding an act of the Government of the Ryukyu Islands or interfering with the latter’s normal functions. It is the policy of the U.S. to reduce its responsibilities for civil administration of the Ryukyus as rapidly as compatible with military requirements. The ultimate authority to control the government of the Islands rests with the Civil Administration. Subject to the foregoing, however, the Administration will:

1. Promote an atmosphere of mutual cooperation and understanding in which the Government of the Ryukyu Islands can be permitted to exercise the normal power of government in all matters of domestic administration.

2. Advise and consult with the appropriate Ryukyuan executive and legislative authorities in advance of legislation by the Ryukyuan legislature or the municipal legislative bodies with a view to making unnecessary the uses of the veto power.

3. Refrain from the exercise of the authority to review decision of the Ryukyuan courts except in cases involving a serious threat to the fulfillment of the Civil Administration mission.

4. Cooperate and coordinate with the Government of the Ryukyu Islands and with the municipal governments of all levels in the formulation and development of programs, policies and procedures, while recognizing that such governments should be accorded as much freedom as possible in achieving the political aspirations of the Ryukyuan people in fostering their trade, commerce, and industry, and in developing the resources of the islands.

5. Refrain from exercising its power to remove from office officials of any level of Ryukyuan government except in instances where the continuance of the official in office would constitute a serious threat to the fulfillment of the Civil Administration mission.

6. Encourage political parties, with rights of assembly and public discussion. However, such rights need not be extended to political groups or organisations which advocate political, governmental or social change by means other than orderly legal processes or peaceful petition, or which operate in such fashion as to preclude effective control over party policies and activities by the full membership of such parties.

7. Make every reasonable effort to achieve its civilian administration objectives with a minimum disruption of the lives of the Ryukyuan people.

1. Apparent misdating. See footnote 2, Document 758.
2. See Document 737.
3. Not printed, but see footnote 4 below.

4. The pertinent section of the draft letter to the President reads: “The language [in the proposed directive] remains the same as in the document referred to the National Security Council on 17 February, except for the addition, agreed to by Defense and State, of the underscored words in the following portion of Paragraph A2:

   ‘The Chief official of the United States Civil Administration shall be a Governor, who will be an active member of the United States Armed Forces. His name will be submitted to the President by the Secretary of Defense and the Secretary of State for approval.’ “Underscoring printed here as italics.

5. Dated Oct. 4, 1950. For text, see Foreign Relations, 1950, vol. vi, p. 1313.
6. Acceptance of this sentence is contingent upon the conclusion of an understanding between the Department of Defense and the Department of State with respect to the State Department’s foreign relations responsibility for the Ryukyu Islands and the means by which this responsibility is to be exercised. [Footnote in the source text.]
6. The Supplemental Instructions were classified “Secret”.