894.512/9–1847
The Department of State to the Swiss Legation
Memorandum
The Department of State refers to the memorandum from the Legation of Switzerland dated March 26, 1947, and to the Department’s reply thereto dated May 2, 1947,81 respecting the applicability of certain Japanese taxes to Swiss property in Japan. In the latter communication, the Department of State informed the Legation that the Legation’s memorandum of March 26, 1947 was being transmitted to the Far Eastern Commission for its consideration, and that the Government of the United States would transmit the comments of the Far Eastern Commission to the Legation as soon as possible.
The Department is now in receipt of the following letter from the Chairman of the Far Eastern Commission:
“Reference is made to General Hilldring’s letter of June 4, 1947, enclosing a copy of the memorandum from the Legation of Switzerland, dated March 26, 1947, requesting that the United States Government use its good offices to obtain a revision of the policy respecting the application of certain Japanese taxes to Swiss property in Japan.
“The Far Eastern Commission has given sympathetic consideration to the request presented by the Legation of Switzerland on behalf of its Government and has carefully weighed the reasons set forth in the aforesaid memorandum with a view to supporting its claim. After due examination of all factors involved, the Commission regrets that it cannot accede to the request of the Swiss Government. It believes that the nationals of neutral countries, who were able to do business in Japan during the war years and thus derived the benefits accruing therefrom, should continue to be subject to local laws, including laws imposing taxation, which have as their object the raising of revenue for the vitally necessary economic rehabilitation of Japan.
[Page 307]“The Far Eastern Commission considers that it does not fall within the Terms of Reference of the Commission to determine the effect of the Swiss-Japanese Treaty of Settlement of June 21, 1911 in the present circumstances.”