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

Lot 54 D 423

Memorandum by the Officer in Chargé of Thai and Malayan Affairs (Landon) to the Assistant Secretary of State for Far Eastern Affairs (Rusk)

[Washington,] August 30, 1951.

After extended conversations with the British Embassy on Japanese Assets in Thailand we have concluded that it is impossible to reach agreement on the distribution of the assets at this time and that in fact it might be much easier to reach agreement after the San Francisco Conference and indeed after the various neutral countries holding Japanese assets have given some indication of their reaction, to Article 16. We agreed on the attached draft statement, the substance of which might be used by the U.S. and U.K. delegates in reply to possible questions by other delegates regarding Japanese assets in Thailand. It was intended that only the first paragraph be used in reply to general questioning in order to keep the subject as general as possible and that the six points be referred to only if the questioning was pressed.

[Attachment]

For Use in Reply to Possible Questions at the San Francisco Conference Regarding Japanese Assets in Thailand Under Article 16

The U.K. and U.S. Governments which since 1945 have acted as trustees of certain assets in Thailand which might possibly be considered as Japanese external assets, have found it necessary to give separate consideration outside of Article 16 of the proposed Japanese Peace Treaty to the disposition of these assets because of their complex origins and of the conflicting claims revolving about them. Some of the complexities of the situation were:

1. Some of the assets were the proceeds of a sale to Thailand of the Burma–Thailand Railway built largely by prisoners of war using equipment derived from other Southeast Asian countries.

2. Other of the assets appeared in reality to be Indian assets.

3. Another substantial amount was of uncertain origin and held in a U.K. custody account.

4. Another large portion of the total was similarly held in a U.K. custody account and regarded by the U.K. as war booty.

5. Another substantial sum was held by the Thai Bureau of Enemy Property against which Thai citizens have placed war damage claims due to loss during the Japanese occupation.

6. A final sum was held in a joint UK–US account in New York and was the proceeds of the sale of tin of undetermined origin—possibly looted from the Thai, possibly German, possibly Japanese.¹

1. In telegram 671, to Bangkok, September 20, repeated to London, drafted by Mr. Landon, the Department stated:

   “Brit officials from London while in Washington discussed on Sep 13 disposition assets in Thailand generally regarded as Jap assets. It was agreed without commitment by either US or UK Govts that solution shld be sought bearing in mind fol:

   (a) That assets in Thailand of Jap ownership at time of first coming into force of Peace Treaty with Japan less such valid claims as are made against them shld under Art 16 of the Treaty be transferred by Japan to Internatl Comite of Red Cross.

   (b) In view special circumstances, favorable consideration shld be given to transfer to Thai Govt of certain other assets in Thailand which have hitherto been held as ‘Jap Assets’.

   (c) That further consideration this question shld be postponed until agreed statements of account become available from Bangkok.” (292.9441/9–2051)

   Documents in file 292.9441 indicate that the United Kingdom and the United States were unable to reach agreement in 1951 on the disposition of all items among the former Japanese assets in Thailand, and that therefore no final settlement was reached during the year.