393.115/12–2745: Telegram

The Secretary of State to the Chargé in China (Robertson)

27. Hague Regulations Land Warfare 190766 to which China adhered 1917 provide in article 53 limitations on war booty regarded by Dept as valid (Urtel 2226, Dec 27). Only (1) movable, (2) government owned property, (3) susceptible of military use, for example cash, arms depots, means of transport, may properly be treated as war booty aside from battlefield booty. All three conditions must be met. In general private property may be taken only if paid for or returned later. Undoubtedly complexities of Jap and puppet ownership and corporations will make final determination difficult but rule above is only feasible guide. The alternative justification for seizure is as debit to reparations account.

Dept considers local arrangement on property offsets (Urtel 1950 Nov 9) an excellent solution to immediate problem of aiding American firms but stresses informal nature of such an agreement due to unqualified right of Chinese to confiscate all Jap property as war booty [Page 1424] if appropriate or otherwise as debits to reparations account. Consequently Embassy can support claims on basis this arrangement only when property involved is similar to usual business stocks seized and consumed by Japs, or equipment removed, damaged or destroyed by them.

Referring to Chinese acceptance of paragraph 3 (a) of Deptel 1350 of Aug 28 (Urtel 2059 Nov 24 [29])67 what steps have been taken to list Jap property in liberated areas? This action, together with an accounting for assets seized other than war booty, will be essential for eventual reparations settlement. Deptel 1543, Sept 12 [25],68 consenting to confiscation makes this a condition which Dept considers vital to proper calculations.

Sent to Chungking, repeated to Tientsin and Shanghai.

Byrnes