Foreign Relations of the United States, 1951, Asia and the Pacific, Volume VI, Part 1

694.001/2–2651: Telegram

The Ambassador in the United Kingdom (Gifford) to the Secretary of State

confidential

London, February 26, 1951—5 p. m.

4619. Foreign Office has handed Embassy aide-mémoire¹ in reply to our representation on need for increased Japanese participation in international relationships (Department’s A–568 October 19² and Embtel 2835 November 15³). Substance of aide-mémoire is as follows:

1. MFN treatment for Japan. British Government is now giving same treatment to Japanese trade as to trade of GATT members. Only restrictions on Japanese imports at present are imposed on balance of payments grounds. Japanese recovery is important to relieve burden of US taxpayer and to enable Japanese to make contribution to economic development in South and Southeast Asia. British Government is concerned about “unique phenomenon” of Japanese competition which has caused serious difficulties for UK in past. British Government cannot enter into any formal commitment to grant MFN to Japan, but will continue to accord, to Japanese trade actual MFN treatment.

2. Japanese trade representatives. British Government will accept Japanese overseas representatives in UK. It will not be possible for some time to accept them in British colonial territories which were occupied by Japanese during war, Malaya, Hong Kong, etc., because of hostile local feeling (position with respect to their colonies unclear and we have requested clarification).

3. International conferences and organizations. British will in pre-peace treaty period welcome participation of Japanese in International conferences and organizations on technical character as observer without right to vote. They will also examine possibility of Japanese participation in such conferences and organizations as full membership relevant to body in question. As exception to above principle British will not agree to Japanese participation in GATT even as non-voting observer.

In delivering note to Embassy officer Muntz⁴ of Foreign Office stated that Government is under strong pressure from textile industry and other industries which have in past suffered from Japanese competition to make statement on trade relations with Japanese and that Wilson, President of BOT,⁵ will do so in House of Commons in near future. Embassy considers it probable that refusal to grant formal MFN commitment is result of strong pressure by industry groups on Government which has narrow majority.

Text of aide-mémoire air pouched.⁶

Department pass USPolAd Tokyo as London’s 46.

Gifford

1. Not printed; text included in despatch 4019 from London, February 27, not printed. (694.001/2–2751)
2. See Foreign Relations, 1950, vol. vi, p. 1348, footnote 1.
3. Ibid., p. 1348.
4. Thomas Godric Aylett Muntz, Head of the Economic Relations Department.
5. Harold Wilson, President of the Board of Trade.
6. A manuscript notation in the source text indicates that no action was to be taken on this message.