290 Makin to Department of External Affairs

Cablegram 95 WASHINGTON, 22 January 1948, 6.52 p.m.

SECRET

FEC.3.

[matter omitted]

2. McCoy also read a lengthy statement which will shortly be issued by State Department to the press. Full text sent under our memo JP.57. In brief it emphasises importance of achieving a self- supporting economy in Japan as soon as possible. Japanese Government and people, FEC [1] and SCAP [2] should take all possible and necessary steps to bring this about. Serves notice that proposal will shortly be introduced into Congress to provide funds for Fiscal year 1949 not only for subsistence items but also for procurement of such imports as industrial raw materials and spare parts to assist Japan to expand output of peaceful industries towards status of self-support. Statement also exhorts FEC to give favourable consideration to future policies to be presented to FEC designed to achieve a self-supporting economy in Japan.

3. After meeting I entertained all delegates, including Soviet, French and Chinese Ambassadors, at lunch at the Embassy at which Mr. Dedman was also present.

1 Far Eastern Commission.

2 Supreme Commander for the Allied Powers.

[AA:A1838/283, 479/1/7, i]