740.00119 PW/10–947: Telegram
The Acting Secretary of State to the United States Reparations Delegate in Japan (Hodge)
400. USRepDel 1. Subj. UN property.
1. In Telcon 8457, Aug 25, SCAP was requested forward final comments and recommendations re SWNCC 357. Understanding here such comments available immediately necessary clearances obtained by CPC. No further info recd here. Assume delay due problem treatment UN holdings in Jap companies which are or may be subj liquidation under Zaibatsu program. As guide your discussions this problem and to assist securing early submission SCAP comments and recommendations re SWNCC 357, fol is view here:
- a.
- In cases UN Natls are eligible for return of shares in concerns which may be subj liquidation, but not yet liquidated under Zaibatsu program, consider such return should be effected and any compensation for damages paid accordance SWNCC 357. Subsequent treatment such UN investors whose shares are returned should conform policies estab for other non-Zaibatsu investors these concerns.
- b.
- Responsibility Jap Govt for protection UN interests should not impede Zaibatsu liquidation program re firms being liquidated prior return shares to UN owners.
In event implementation liquidation program requires disposal UN shares or assets of companies in which UN shares held prior to return such shares UN owners, latter should receive compensation accordance [Page 306] para 8(f), SWNCC 357, to extent not otherwise compensated under terms Zaibatsu liquidation program.
Above implies natl treatment UN investments in Zaibatsu concerns, apart from obligation Jap Govt provide adequate compensation for loss or damage UN interests as result of war as provided SWNCC 357. Reinvestment yen balances derived from compensation UN shareholders subj Zaibatsu program should conform same limitations as apply Jap natls under applicable Jap regulations.