In accordance with a memorandum dated August 13, 1947, from the
State–War–Navy Coordinating Committee, there is enclosed a statement of
United States Policy with respect to the Restoration of Private Trade
with Japan, comprising the Conclusions of SWNCC 373/1 which was approved by the State-War-Navy
Coordinating Committee on August 12, 1947.
The United States Member is requested to submit the statement of United
States Policy to the Far Eastern Commission with a view to obtaining
from the Commission a policy decision on the subject and is authorized
to permit any such modifications as do not change its meaning and
substance.
The United States Member is informed that paragraphs 2, 4, and 5 of the
statement of United States Policy are compatible with the views of the
Department of State. He is advised not to press for their approval if it
appears that obtaining acceptance of these points would delay passage by
the Far Eastern Commission of the remainder of the statement of United
States Policy.
[Annex]
Statement of United States Policy With Respect to
Restoration of Private Trade With Japan
confidential
I. Long-Range Policy Objectives
1. To foster the development of conditions in Japan which will
contribute to the expansion and balanced growth of international
private trade.
2. To promote the reduction of trade barriers and the progressive
elimination of all forms of discriminatory treatment in
international commerce.
3. To encourage an increase in Japanese exports, compatible with
occupational objectives, in order that these exports may, as soon as
possible, pay for the imports required for the prevention of disease
and unrest within Japan, and the reestablishment of a
self-sustaining Japanese economy; and, in order that Japan may
provide goods required throughout the world—particularly in areas
which have suffered deprivation as a result of Japanese
aggression.
II. Adherence to Draft Charter for an
International Trade Organization
4. Japan’s foreign trade should be conducted in a non-discriminatory
manner with respect to all purchases and sales and with respect to
all persons or nations participating in, or affected by such trade.
Controls over Japan’s foreign trade, deemed necessary during the
transitional phase, should be administered in accordance with the
relevant principles of the Draft Charter for an International Trade
Organization55 embodied in the Report of the Drafting
Committee of the Preparatory Committee of the United Nations
Conference on Trade and Employment (issued by the United Nations
Economic and Social Council March 5, 1947, at Lake Success, New
York, with the identification E/TC/T/34), and every effort should be
made to secure the removal of such controls as soon as conditions
giving rise to them have ceased.
In adopting [adapting?] draft charter
principles to problems peculiar to Japan, emphasis should be placed
upon specific charter principles barring trade restriction and
discriminations, rather than upon
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its permitted exceptions which are designed in
the main, to cover emergency and temporary situations.
5. The following principles of the draft Charter are considered to be
particularly relevant: Those principles concerning the elimination
of quantitative restrictions (Articles 25, 26 and 27), exchange
arrangements (Article 29), subsidies (Article 30), and state trading
(Article 31).
III. Entry of Private Businessmen
6. On and after August 15, 1947, the following categories of
businessmen should be permitted entry into Japan:
-
a.
- Merchants and other traders who are prepared to purchase
or to make arrangements for future purchases of potential
exports, or to provide raw materials or other commodities
which Japan must import.
-
b.
- Representatives of banks, insurance companies, airlines,
and shipping companies who are prepared to render necessary
services in connection with Japan’s foreign trade either to
private non-Japanese businessmen, to the Supreme Commander
for the Allied Powers or to Japanese persons or agencies
approved by him.
-
c.
- Representatives of companies or individuals with
substantial prewar property interests in Japan, particularly
representatives of property owners who cannot make
satisfactory provision through the use of powers-of-attorney
to relieve SCAP of
custodial responsibility.
7. In the initial stages permission to enter Japan should be granted
only to those whose business activities can be expected to
contribute to the fulfillment of Japan’s export and import programs
and to the achievement of the objectives of the occupation
sufficiently to justify the burden which their presence will impose
on Japan’s domestic economy and on the occupying forces.
8. If the number of businessmen who can qualify to enter Japan are,
in the initial stages, greater than the number that can be
accommodated in Japan, the distribution of entry permits should be
in accordance with country quotas established on the recommendation
of the Inter-Allied Trade Board. Such quotas should be established
with due regard to such factors as relative prewar commercial
interests in Japan and the current situation as to potential markets
for Japanese exports and sources of imports. Within established
quotas each country should be expected to recommend those of its
nationals desiring to enter Japan who should be given priority of
entry. However, such recommendations should not affect SCAP’s right to grant or withhold
permission to enter or to remain in Japan on an individual
case-by-case basis. Entry of private traders under a quota system
will not affect the arrangements for entry of such government
officials or representatives of semi-governmental trading
organizations as may be required to facilitate trade between Japan
and such country. The number of such representatives to be admitted
for such trading
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should
continue to be a matter of mutual agreement between SCAP and the country concerned.
9. There should be no discrimination on grounds of nationality
against any foreign businessman admitted to Japan, and all should be
accorded equality of opportunity to transact business and obtain
available accommodations.
IV. Methods of Conducting Business in
Japan
10. Occupation policy should oppose excessive concentration of
economic power in Japan. To this end, businessmen admitted to Japan
should be encouraged to operate so as to enlarge the number of
Japanese firms engaged in foreign trade. Any limitations or controls
on the participation of Japanese firms in foreign trade should be
based upon criteria established by or under the supervision of
SCAP and should operate only to
the extent required to meet the objectives of the occupation. The
fostering of monoply by any agency of the Japanese Government
participating in foreign trade should be prevented. Contracts
between Japanese and foreign businessmen should not result in undue
restrictions on the flow of international trade. The distribution of
export and import licenses should be on a fair and equitable
basis.
V. General
11. Trading should be continued—during the transitional period, as
may be necessary in the interest of maximizing export proceeds—by
the Japanese Government and through the medium of governmental
agencies with some areas and in some commodities. In so far as
possible, Japanese governmental trading through the medium of
governmental agencies and private trading should not overlap for the
same commodity in the same market.
12. The Japanese Government should be encouraged to take an
increasing responsibility and initiative for planning of foreign
trade, subject to necessary SCAP
controls.
13. A commercial exchange rate for the yen should be established as
soon as practicable.
