125.8536/9–1247
The Economic Adviser in Korea (Bunce) to the Secretary of State
[Received September 23.]
Sir: I have the honor to forward four complete folders of the economic materials presented to the Wedemeyer Mission during its recent visit to Korea.98
At the request of the Military Governor, Mr. Owen T. Jones and other members of my staff coordinated, prepared and presented most of this material in cooperation with representatives of the Military Government. The presentation included oral and written reports on major economic problems by American specialists, discussions on long range economic planning, and field trips to Pusan, Kwangju, and Inchon.
Twenty copies of the report on “The Present Economic Status of South Korea,” which is included in the compilation of the Wedemeyer presentation, were forwarded on 2 September 1947 as Seoul PolAd Despatch No. 66.99
Because only four completed folders are available, eight additional copies of the following two reports included in the folders are enclosed for wider distribution:
1. Revised Statement of Rehabilitation Program for South Korea.
This report represents a re-thinking of the proposed three-year rehabilitation program for South Korea in the light of the possibility that the present division of the Korean peninsula along the 38th parallel may continue indefininitely. The conclusions of this report indicate the American occupation zone in Korea may be brought to within $10,000,000 per year of being self-sustaining by 1953 if a net total of about $420,000,000 becomes available to finance a program of economic recovery and rehabilitation during the five years beginning 1 July 1948. These conclusions are somewhat more optimistic than those of the spring of 1947, and are based upon the growing conviction that the revival of Korean agriculture, fisheries, mining, and foreign trade may progress more rapidly than previously indicated and upon the belief that capital expenditures need not be as heavy as originally [Page 789] contemplated. A despatch fully developing present thinking regarding the requirements for a long-range rehabilitation program for South Korea is now being prepared by the staff of the Department’s Economic Mission.
2.Statistics on Civilian Supply Import Program and Foreign Trade.
This series of tables was prepared by The National Economic Board. The data on imports and exports to and from South Korea indicates that total imports from all sources into the area were valued at $144,900,000 for the period September 1945 through July 1947, and that exports were valued at $8,210,000, resulting in an excess of imports over exports of approximately $136,690,000. Imports by value included $95,470,000 from GARIOA funds, more than half of which was expended for foodstuffs; $25,000,000 from surplus military stocks, under the Foreign Liquidation Commission credit; $500,000 from UNRRA; $21,590,000 from Japan (mainly bituminous coal), and $2,340,000 from private trade.
Respectfully yours,
Minister