740.00119 PW/9–1448
Memorandum by the Assistant Secretary of State for Occupied Areas (Saltzman) to the Secretary of State
Subject: Removal of Reparations Facilities from Japan
Problem:
At the meeting this morning you requested a specific suggestion as to how we might ensure that the Japanese will not be required to dismantle, pack and deliver to dockside reparations facilities which the claimant countries later prove themselves unwilling or unable to remove.
Discussion:
We believe that the point can be taken care of by the following changes in the proposal previously recommended:
The following section should be added as item (f) at the end of Paragraph 2 of the Department of State’s proposed language for the NSC paper (enclosure No. 2 to your letter of September 10 to Secretary Roy all):
“(f) Claimant countries should be required to enter into agreements with SCAP establishing specific schedules for the removal of allocated reparations facilities. Should any country fail to remove facilities on schedule SCAP shall be empowered to revise or suspend schedules for dismantling and delivery to dockside of facilities previously allocated that country.”
To accord with this amendment, the reparations allocation procedure directive already sent to SCAP should be modified to provide [Page 1014] that agreements made between SCAP and reparations claimant countries regarding the dismantling, delivery and removal of reparations facilities will include a covenant on the part of the recipient country to accept and remove the specified facilities within specified time periods. This modification should provide that if in the judgment of SCAP the recipient country fails to meet these removal schedules, SCAP may revise or suspend schedules for dismantling and delivery to dockside of facilities allocated that country until SCAP is satisfied that removal schedules acceptable to him are being or will be met. It should further provide that when agreed removal schedules have not been met, normal commercial charges, payable in foreign exchange acceptable to SCAP, will be made for storage of facilities until their removal.
Recommendation:
If you feel that the above suggestions would satisfactorily meet the point you raised this morning, you may wish to suggest them to Secretary Royall as a modification in the State proposal.