Foreign Relations of the United States, 1946, The Far East, Volume VIII

694.0031/10–1046

Memorandum by the Assistant Secretary of State (Hilldring) to the Secretary of SWNCC (Moseley)

Washington, October 16, 1946.

Subject: Policy Decision of Far Eastern Commission Establishing Terms of Reference of the Inter-Allied Trade Board for Japan.

There is enclosed a draft message to the Supreme Commander for the Allied Powers comprising the policy decision of the Far Eastern Commission, establishing the Terms of Reference of the Inter-Allied Trade Board for Japan, which was unanimously approved by the Far Eastern Commission at its 29th meeting on October 10, 1946, and also the statement made by the United States representative in approving the policy decision.

It is requested that the enclosed draft message be forwarded to the Joint Chiefs of Staff for transmission to General MacArthur for his information.

J. H. Hilldring

[Annex]

Draft Message for General of the Army Douglas MacArthur

The following decision of the Far Eastern Commission establishing, at the request of the United States Government, the Terms of Reference of the Inter-Allied Trade Board for Japan was unanimously approved by the Far Eastern Commission at its 29th meeting on October 10, 1946:

[Here follows text of decision printed as Appendix 31 in Department of State Publication 2888, Far Eastern Series 24 (Washington, September 1947), page 85, entitled Activities of the Far Eastern Commission; Report by the Secretary General, February 26, 1946–July 10, 1947.]

In approving the above, the United States representative asked that the following statement be included in the minutes of the Commission meeting:

“The United States Government will in general accept recommendations of the Inter-Allied Trade Board for Japan made in accordance with its terms of reference. Exceptions will be made only in cases when in the view of the United States Government acceptance of a recommendation would be inconsistent with the attainment of the objectives of the occupation.

“The United States Government notes the last sentence of paragraph 3 which requires that recommendations of the Board involving matters of policy be approved by the Far Eastern Commission. Since all actions of the Board are recommendations to the United States Government, the United States Government is not, by this provision, precluded from taking action on matters of urgency pending consideration by the FEC. This position is in line with the Terms of Reference of the Far Eastern Commission which permit the United States Government to issue interim directives in cases of emergency, subject to subsequent review by the Far Eastern Commission.”

In accordance with the above Terms of Reference the U.S. Government has transmitted a note to each of the Governments represented on the FEC requesting the appointment of a representative to the Inter-Allied Trade Board for Japan and enclosing the Terms of Reference.²²

22. The notes were dated October 16, 1946, and were sent to the ten other members of the Far Eastern Commission (694.0031/10–1046). Replies naming appointees to the new trade board were received from India (October 21), Canada (October 22), Netherlands and Australia (October 23), Philippines (October 24), France (October 26), New Zealand (October 29), and United Kingdom (November 5). The first meeting of the trade board was scheduled for October 24, 1946, 3 p.m. (694.0031/10–2246) China also was represented on the board; for the members, see Department of State Publication 2888, p. 44.