740.00119 Control (Japan)/10–3147

The Acting Political Adviser in Japan (Sebald) to the Secretary of State

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No. 1363

Sir: I have the honor to refer to this Mission’s despatch No. 1340 of October 16, 1947 and previous correspondence in regard to meetings of the Allied Council for Japan and to forward herewith five copies of the Agenda and Corrected Verbatim Minutes of the Forty-fourth Meeting of the Council held on October 29, 1947.90

Under official matters, the subject “Report by the Chairman on the Establishment of a Foreign Exchange Rate for Japan”, had been held over from the previous meeting. The British Commonwealth Member, after stating that it was his Government’s view that establishment [Page 312] of a uniform rate of exchange is a practicable proposition, recommended the establishment of a variable rate in conjunction with stringent controls in foreign exchange dealing and import licensing. The Chinese Member suggested that a committee be designated by the Council to prepare a report to the Council on the matter, in view of its highly technical nature. At the request of the Acting Soviet Member, the subject was retained on the Agenda for further discussion at the next meeting.

The second subject on the Agenda was a “Report by the Chairman on the Problem of Repatriation”, proposed by the Supreme Commander for the Allied Powers. In my statement (page 3 et seq.), I pointed out the importance of the problem of repatriation and stated that repatriation from all areas except Manchuria and Soviet-controlled areas has been practically completed.

An agreement relating to repatriation between this Headquarters and the Soviet Member, as well as subsequent correspondence based thereon, was described and made part of the record. In view of Soviet charges that the slow rate of repatriation was caused by the American authorities in Japan, I stated that the Supreme Commander was prepared, within forty-eight hours after the receipt of notice, to increase the number of Japanese repatriated from Soviet-controlled areas to 131,500 during the first month, and thereafter to increase the number to 160,000 per month. By such an increase, every Japanese now in Soviet-controlled areas could be repatriated within five months.

In reply, the Acting Soviet Member, after asserting that the question of repatriation of Japanese from Soviet areas does not lie within the purview of the Council, made the accusation that “definite political considerations” must have dictated the presentation of this subject for discussion. In an obvious effort to provide material for propaganda organs and apparently to divert attention from his Goverment’s responsibility for delay in returning Japanese from Soviet-controlled areas, he alleged that “repatriates get no proper assistance from the Japanese Government and the Occupation authorities with regard to getting employment …”, and quoted from press reports concerning the so-called “deplorable state” in which repatriates find themselves.

In rebuttal, I submitted that it was fully within the province of the Council to discuss repatriation problems since they affect the lives of so many Japanese. I pointed out that little cognizance can be taken of a few isolated complaints concerning treatment accorded repatriates, and took the opportunity to imply that only in a comparatively free press could such reports have been printed. In addition, I remarked that the Acting Soviet Member was actually pleading for [Page 313] preferential treatment of repatriates despite the fact that in a previous Council meeting it was the consensus that such treatment should be avoided. As a matter of course, a categorical denial was made that this Headquarters had ever sponsored Japanese meetings to accelerate repatriation.

The Chinese Member, after stating that certain Japanese technicians had volunteered to remain in China, agreed that prompt action should be taken to complete repatriation of all Japanese. The British Commonwealth Member set forth those parts of various governmental agreements from which the authority of the Council is derived for the discussion of repatriation and similar matters and urged acceleration of repatriation from Soviet-controlled areas for humanitarian reasons.

Respectfully yours,

W. J. Sebald
  1. Enclosures not printed.