740.00119 Control (Japan)/6–1649

The Chargé in Japan (Huston) to the Secretary of State

secret
No. 391

Subject: Launching of Program to Effect Relaxation of Occupation Controls in Japan

Sir: With reference to my despatch no. 298 of May 10, 1949, on the above subject, I have the honor to report that the Chief of Staff, Major General E. M. Almond, held a second meeting yesterday of the Chiefs of Headquarters Staff Sections for the purpose of discussing progress so far made in the program for effecting a general relaxation of Occupation controls in Japan. He declared that good progress had been made so far and expressed satisfaction with the preliminary work already done in the form of reports by the various Section Chiefs.

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The next step, General Almond stated, would be to have each Section report gone over carefully by a committee comprising representatives of several Staff Sections, under the direction of the Deputy Chief of Staff for SCAP, Major General (recently promoted) A. P. Fox, after which the committee will discuss each Section report with the respective Section Chief with a view to determining whether everything possible is being done to relax the occupational controls pertaining to that particular Section.

General Fox exhibited a chart showing results of a preliminary examination and collation of the reports submitted indicating that 1,362 controls are now in effect, 1,041 of which had been recommended for continuation, 141 for relaxation or modification, and 180 for elimination. On this basis, 76 per cent of existing controls would be continued, 11 per cent relaxed and 13 per cent eliminated.

General Almond took occasion to urge Section Chiefs to redouble their efforts to find means of reducing Occupation personnel requirements, saying wryly that despite efforts so far made in that direction personnel estimates prepared for the new budget had reached a total of one hundred persons more than had been on the rolls for the fiscal year just ended.

General Almond stated that all major Occupation policies have now been established except one, namely, the policy on tax collection, which is now being studied by Dr. Carl S. Shoup and the members of his tax mission. He also said that plans were now completed for the conversion of Military Government teams into “Civil Affairs” teams and that examples of the easing of controls already achieved included the modification of restrictions on commercial entrants, increased facilities for tourist travel and authorization for the Japanese Government to communicate with its nationals abroad.

General Almond emphasized that he was being pressed by General MacArthur to effect a genuine relaxation of controls and urged each Section Chief to make a serious effort to carry out the Supreme Commander’s wishes.

Respectfully yours,

Cloyce K. Huston