894.5151/12–1147
Mr. Frank G, Wisner,
Deputy to the Assistant Secretary of State for Occupied Areas, to
the United States Member of the Far Eastern Commission
(McCoy)
Washington, December 11,
1947.
My Dear General McCoy: I enclose herewith a
statement which the United States Government desires be made to the Far
Eastern Commission on December 11, 1947, together with a memorandum of
information with accompanying SCAP
Circular.3 The memorandum of
information with attachment should, if possible, be distributed to the
members of the Commission prior to the meeting at which the statement is
made.
The purpose of this statement and memorandum of information is to
acquaint the members of the Commission with the steps being taken by the
Supreme Commander in connection with the implementation by him of
paragraph 16 c, FEC–032/26 entitled “Interim Import-Export Policies for
Japan”.4
This action is considered necessary because the implementation of this
policy statement involves the obtaining of bank loans for financing
Japanese foreign trade and the interested banks have requested that the
members of the Commission be informed as to the course of action
contemplated by the Supreme Commander, prior to the finalizing of the
necessary loan agreements.
I regret the necessity of such early action on this matter but, in order
to maintain supplies for Japan, it will be necessary to have these bank
funds available by the beginning of the year. Since the possibility
exists that other Commission members may wish to comment on the
memorandum it is felt that the matter should be introduced at least one
meeting prior to the last meeting of the Commission this year.
Messrs. Barnett, Whitman and McDiarmid5 of the Department of State are fully conversant
with the problem and will be available for such briefing as may be
required.
Sincerely yours,
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[Enclosure 1]
Statement by General McCoy
The members of the Commission will recall that paragraph 16 c, FEC–032/26, “Interim Import-Export Policies for Japan”,
adopted by the Commission on July 24, 1947, provided for the use of
certain Japanese-owned stocks of precious metals and stones, for
acquiring foreign exchange to assist in financing a portion of the
Japanese trade program. The Supreme Commander has now forwarded to
the Commission Circular No. 9, which has been issued to implement
the Commission’s policy statement. This Circular, together with an
explanatory statement thereof, has been circulated as MI-. … The
Supreme Commander is about to take such steps as are necessary for
the accomplishment of this program, and I am therefore calling it to
the attention of the Commission at this time.
[Enclosure 2]
Memorandum of Information—FEC
implementation of paragraph 16 c, FEC–032/26
The Supreme Commander for the Allied Powers has now taken steps to
implement paragraph 16 c, FEC–032/26, “Interim Import-Export
Policies for Japan”, which authorizes the use of stocks of gold,
silver and certain precious stones of established Japanese
ownership, for the purpose of acquiring foreign exchange to purchase
imports necessary for Japan’s peace economy. A copy of the
implementing SCAP Circular No. 9,
15 August 1947, including proposed amendments, is annexed hereto.
This instrument creates a separate fund, including gold and silver,
from such stocks with which to finance imports of materials to be
used in self-liquidating programs, and permits the borrowing of such
currencies as may be needed for this purpose. If, under
circumstances now deemed unlikely, proceeds of Japanese exports or
other funds are not available to pay maturing obligations of the
fund, the stocks of precious metals referred to in paragraph 16 c, will be sold for the currencies required
to the extent necessary to pay such obligations. All amounts sold
will be properly accounted for, and equal opportunity to acquire
such assets for the aforementioned currencies will be granted to all
member countries of the Far Eastern Commission.
Circular No. 9 establishes various safeguards for preserving the
values of the gold and silver. Paragraph 4 b
provides, for example, that the export proceeds of products
manufactured from materials,
[Page 332]
the importation of which are financed by the fund, will be paid
into the fund. In addition, the net return from the export of
textiles manufactured from raw cotton imports which have heretofore
been financed by the U.S. Government, will also form a portion of
the fund’s assets.
