694.001/3–1651: Telegram

The Acting United States Political Adviser to SCAP (Bond) to the Secretary of State

secret
priority

Topad 1675. Dulles from Bond. ReMistel 1665, Mar 14.1 Have today recd from Iguchi for [fol?] comments of Jap Govt, approved by PriMin, on changes proposed numbered paras Deptel 1333, Mar 12:

1.
Preamble: No objection.
2.
Territory: (a) Proposed provision for return of South Sakhalin and handing over of Kuriles to SU under assumption it will participate in peace treaty is agreeable. However, it is desired to have the passage in question read: “As they may be defined by the powers concerned, including Jap”.
(b) In case SU goes definitely out of picture, it is hoped such stipulation re South Sakhalin and Kuriles will be omitted.
3.
Security: Agreed.
4.
Polit and econ clauses: No objection.
5.
Claims arising out of the war: There is no objection to leaving matter to Jap domestic legis. However,
(a)
Deletion is desired of part of draft text2 reading, “in no event wld nationals of allied and associated powers receive less favorable treatment than that accorded to Jap nationals”. Jap Govt is not contemplating payment of any compensation for war damage to Jap property within Jap territory. Compensations for other kinds of damages, if paid, wld be very small. It is feared that above-mentioned clause might raise vain hopes among Jap or force govt to pay out compensations it cannot afford.
(b)
In case of dispute between the govt and a claimant, it might be more practical solution to have dispute settled once and for all by mixed comm instead of arbitration court mentioned in annex (1) and (2).3
6.
Submarine cables: No objection.

Iguchi states careful study provisional memo of Feb 8 has just been completed by Jap Govt whose full comments thereon he expects to hand to me this weekend. Such comments will be forwarded upon receipt.

Bond
  1. Not printed. In it Mr. Bond reported delivering to Mr. Iguchi a memorandum along the lines set forth in the Department’s telegram 1333 of March 12, p. 908.
  2. Reference is to the wording of numbered paragraph 5 of telegram 1333.
  3. Reference is to the annexes to the provisional memorandum of February 8. See Annex I to Mr. Dulles’ letter of February 10 to the Secretary, p. 875.