740.00119 Council/6–2546: Telegram
The Acting Secretary of State to the Secretary of State, at Paris
us urgent
3052. Secdel 339. For the Secretary. For your info and guidance Hilldring and Galbraith presented following US “Proposal Regarding Japanese External Assets as Factors in the Japanese Reparations Settlement” which has been approved by SWNCC, to Soviet Ambassador68 June 24, p.m. Impression gained that Novikov’s personal view was that proposal appeared practical and might contribute to prompt handling of reparations problem as a whole. He [Page 543] will forward proposal to Moscow and to Molotov, Paris. He did not indicate whether he would suggest Molotov initiate discussion in Paris; Hilldring agreed his view that matter could best be handled here in Washington and expressed the opinion you would not bring matter up in Paris.
- “1. No distinction should be made between war booty and other
types of Japanese external assets as they may be applied to the
fulfillment of recognized and approved national reparations
claims, providing that simultaneous agreement be reached that:
- (a)
- All countries at war with Japan may retain all types of Japanese property, supplies, or equipment, military, quasi-military, or civilian, under their administrative control, existing within their territories on the date of Japanese capitulation, or removed to their countries prior to 1 June 1946, and that no unilateral removals will be made by any country after that date;
- (b)
- Japanese external assets as defined in (a) above should be offset against total national percentage shares of total Japanese assets, both those within Japan declared available for reparations and those outside Japan; and
- (c)
- All countries at war with Japan should supply to the Japanese reparations agency inventories of all types of Japanese property, supplies, or equipment, military, quasi-military, or civilian, held by them except for military supplies and equipment actually destroyed.
- 2. Prior to submittal of the above conclusions for
inter-allied consideration, the United States should secure the
agreement of the Government of the Union of Soviet Socialist
Republics to the propositions that:
- (a)
- Paragraphs 1 (a), (b), and (c) are to be accepted as the policy of the two Governments;
- (b)
- All Japanese assets at present in Korea are to be retained in Korea and held in trust for the benefit of the Korean people;
- (c)
- The two Governments will inform the Far Eastern Commission of those decisions and, if the Union of Soviet Socialist Republics so desires, will jointly suggest that Japanese assets in Korea retained temporarily within the administrative control of the United States and the Union of Soviet Socialist Republics should not be offset against the total reparations allotments to the United States and the Union of Soviet Socialist Republics; and
- (d)
- The proposals here made shall be limited in their application to Japanese assets and not be construed as a waiver of claim to property of United States nationals seized as war booty.”
Sent to Paris for the Secretary and repeated to Moscow.69