790.5–MAP/2–2051

The Assistant to the Secretary of Defense for International Security Affairs (Burns) to the Deputy Under Secretary of State (Matthews)

secret

Dear Mr. Matthews: The Chairman of the Munitions Board1 has forwarded the attached draft memorandum to the Secretary of Defense for his signature. The Munitions Board approved these recommendations on 1 February 1951.

Before completing action on these recommendations I should appreciate the reaction of the Department of State to these recommendations, from the political point of view.

Sincerely yours,

J. H. Burns
[Attachment]

Memorandum for the Secretary of the Army,2 the Secretary of the Navy,3 the Secretary of the Air Force,4 the Chairman, Munitions Board

Subject: Japan as a Source for Supply of U.S. Military Requirements.

1. The Munitions Board has informed me that it recently considered the utilization of Japan as a source for U.S. current and wartime requirements for (1) the acquisition of supplies and equipment for use of U.S. forces, particularly in the Pacific area and (2) in support of proposed U.S. military assistance programs in Southeast Asia.

2. It was the conclusion of the Board also that it would be in the best interests of the U.S. to initiate industrial mobilization planning in Japan with a view to utilization of Japan as a supplemental source of supply for U.S. military requirements in another world conflict. Such utilization would (a) give the U.S. a logistics advantage in supplying U.S. and allied forces in the Pacific area, (b) result in a reduction in U.S. dollar aid to Japan, and (c) conserve U.S. resources.

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3. In recommending that planning be initiated for utilization of Japanese industry, the Board recognized the availability of extensive war production facilities and the existence of a large force of skilled labor in Japan.

4. The Munitions Board believes that the success of any planning and programs is contingent upon the placing of educational orders in Japanese industry.

5. In view of the foregoing, it is requested that the three Military Departments

a.
Increase purchases of military equipment and supplies in Japan to the extent practicable for use of U.S. forces, particularly in the Pacific area.
b.
Survey Japanese industrial capabilities further in collaboration with the Munitions Board, with a view to (1) maximum practicable utilization as a source for equipment for U.S. forces and for military assistance programs in Southeast Asia, and (2) full utilization of Japanese industry in event of another world conflict.

6. It is requested that the Department of the Army request the Supreme Commander for the Allied Powers to initiate an industrial mobilization planning program in Japan, which program will be worked out in collaboration with the Munitions Board and the Military Departments.

  1. John D. Small.
  2. Frank Pace, Jr.
  3. Francis P. Matthews.
  4. Thomas K. Finletter.