The first two steps outlined on page two of the memorandum to the
President have been taken. It is requested that on or about
September 2, 1949 you file a copy of the directive with the
Secretary General of the Far Eastern Commission, that you inform him
that it is the intention of the United States to issue the directive
in the near future and request him to bring it to the attention of
the members of the Far Eastern Commission.3
[Enclosure]
Memorandum by the Secretary
of State to the President
4
confidential
Washington, August 18,
1949.
Subject: Disposition of Gold Held in Japan
Earmarked for Siam and French Indo-China
On June 30 I spoke with you briefly concerning the disposition of
approximately $80 million in gold presently held in Japan
earmarked for Siam and French Indo-China.
This gold was earmarked during 1941–1943 as a result of trade
transactions between Japan and Siam and French Indo-China, respectively. The
State Department, Army Department, and General
[Page 845]
MacArthur have been considering
the disposition of the gold for over two years. In view of the
political, legal, and monetary policy considerations the State
Department desires to effectuate the release of the gold to Siam
and France by General MacArthur after he receives a directive
from this Government implementing the Far Eastern Commission
policy decision pursuant to which the Supreme Commander is
obligated to protect the interests, assets, and rights of all
members of the United Nations. The Department of Justice has
stated that there is no legal objection to this course of
action, and the Treasury Department has stated that the
determination to respect the practice of earmarking is in accord
with its views.
General MacArthur, while concerned over the effect upon overrun
countries who might receive this gold as reparations, has
indicated that he would be prepared to carry out a directive of
this Government but prefers that the Far Eastern Commission have
an opportunity to consider the matter before the directive is
issued.
Accordingly, if you approve, it is intended to take the following
steps:
- (1)
- Inform the French, Siamese, and British Ambassadors
that this Government intends to issue a directive to
General MacArthur to release the gold to Siam and France
following notice to the Far Eastern Commission of such
intention.
- (2)
- At the same time, inform, through our missions, all
members of the Far Eastern Commission except Russia of
our intentions in this regard.
- (3)
- Within one week after steps (1) and (2), file with the
Far Eastern Commission a copy of the proposed directive
together with a statement that it is our intention in
the near future to issue such directive.
- (4)
- Within approximately two weeks after the filing of the
proposed directive with the Far Eastern Commission,
issue such directive to General MacArthur.
The Siamese, French, and British Ambassadors will be urged to
support the position of this Government in order that a review
of this matter will not be sought by any country in the Far
Eastern Commission, or to support the position of this
Government in the event that the matter is raised in the Far
Eastern Commission.
The Department of the Army interposes no objection to the
proposed course of action.
