694.001/7–2751: Telegram
The Secretary of State to the Embassy in the Philippines
priority
332. For Ambassador from Allison. Pls discuss at once with Romulo as your own personal idea and without instrs redraft of Art 14(a) and 14(a) 1 given below. You shld point out this redraft takes into acct as far as possible Phil suggestions. Its first sentence recognizes Jap’s obligation pay reparations and does not link it up as present Art 14 (a) does with her inability to pay. Second sentence of 14(a) is based on and uses language from Versailles Treaty with reference to Germany. In view of fact original Ger reparations clauses have been considered most harsh in modern history we believe Phil shld not object to using similar language with respect to Jap. Last part of second sentence also by implication recognizes prior position of occupation costs which we consider vital. Language of 14(a) 1 based on Romulo’s wording contained your 316, July 23.1 Phil reference to Internatl Court of Justice has been omitted as we do not see how this cld operate in practice. Dulles at present out of town until July 30 so this proposal has not been discussed with him and there is no firm Dept agreement that it wld be acceptable. However, if your discussion with Romulo indicates that proposal along this line wld meet Phil position I will recommend acceptance thereof. It is again emphasized this has no clearance here and it cld only be discussed on personal basis and not under instrs.
“Art 14(a). It is recognized that Jap shld pay reparations to the Allied Powers for the damage and suffering caused by it during the war. Nevertheless it is also recognized that the resources of Jap are not adequate to make complete reparation for all such damage and suffering and at the same time meet its other obligations.
“Therefore, 1. Jap will promptly enter into negots with Allied Powers so desiring, whose present terrs were occupied by Jap forces and damaged by Japan, for the purpose of determining what reparation Japan can make, particularly by the delivery of goods and services, the manner of making reparations available, the commencement and period of time for making such reparations available and such other terms as may be necessary for the purpose of complying with this obligation; provided, however, that any agreement to make reparations shall take into acct the ability of Japan to pay and shall avoid the imposition of additional liabilities on other Allied Powers.”
Acheson