F.E.C.31.

The following is the text of the document referred to in F.E.C.28
[1] as circulated by the Secretariat for consideration and
acceptance (by Commission) as a document suitable for reference to
Governments. The next meeting is Wednesday morning 5th December.

Begins:-

POST SURRENDER POLICY FOR JAPAN (F.E.A.C.2/3)

APPENDIX
This document is a statement of the general policy relating to
Japan after surrender. It does not deal with all matters relating
to the occupation of Japan requiring policy determinations. Such
matters as are not included or are not fully covered will be dealt
with separately.

The extent to which the decisions and recommendations of the Far
Eastern Advisory Commission will be given effect will be
determined in the terms of reference which will also indicate the
nature and extent of the reserve authority of the Supreme
Commander.

PREAMBLE (As in F.E.C.29 [2]).

Part I. Ultimate Objectives
The ultimate objectives in relation to Japan to which initial
policies for the surrender period should conform are:-

(a) To insure that Japan will not again become a menace to the
peace and security of the world.

(b) To bring about the earliest possible establishment of a
democratic and peaceful Government which will carry out its
international responsibilities, respect the rights of other states
and support the objectives of the United Nations Organization.

Such Government in Japan should be established in accordance with
the freely expressed will of the Japanese people.

These objectives will be achieved by the following principal
means.

(a) Japanese Sovereignty will be limited to the islands of Honshu,
Hokkaido, Kyushu, Shikoku and such minor outlying islands as may
be determined in accordance with the Cairo declaration and other
binding international agreements.

(b) Japan will be completely disarmed and demilitarized. The
authority of the Militarists and the influence of militarism will
be totally eliminated. All institutions expressive of the spirit
of militarism and aggression will be vigorously suppressed.

(c) The Japanese people shall be encouraged to develop a desire
for individual liberties and respect for fundamental human rights
particularly the freedoms of religion, assembly and association,
speech and the press. They shall also be encouraged to form
democratic and representative organizations.

(d) Japan shall be permitted to maintain such industries as will
sustain her economy and permit the exaction of just reparations in
kind, but not those which would enable her to re-arm for war. To
this end access to, as distinguished from control of raw materials
should be permitted. Eventually Japanese participation in world
trade relations will be permitted.

Part II. Allied Authority
1. Military Occupation. There will be a military occupation of the
Japanese home islands to carry into effect the surrender terms and
further the achievement of the ultimate objectives stated above.

The occupation shall have the character of an operation on behalf
of the powers that have participated in the war against Japan. The
principle of participation in the occupation of Japan by forces of
these nations is affirmed. The occupation forces will be under the
command of the Supreme Commander designated by the United States.

2. Relationship to Japanese Government. The authority of the
Emperor and the Japanese Government will be subject to the Supreme
Commander who will possess all powers necessary to effectuate the
surrender terms and to carry out the policies established for the
conduct of the occupation and the control of Japan.

The Supreme Commander will exercise his authority through Japanese
Governmental machinery and agencies including the Emperor but only
to the extent that this satisfactorily furthers the objectives
stated above. According to the judgment and discretion of the
Supreme Commander the Japanese Government may be permitted to
exercise the normal powers of Government in matters of domestic
administration or the Supreme Commander may in any case direct
action to be taken without making use of the agencies of the
Japanese Government.

It is the right and duty of the Supreme Commander to require
changes in Governmental machinery or personnel if in his opinion
such changes are necessary to effectuate the surrender terms or
the policies contained in this document. The Supreme Commander is
not committed to support the Emperor or any other Japanese
Governmental authority. The policy is to use the existing form of
Government in Japan and not to support it. Changes in the form of
Government in the direction of modifying or removing its feudal
and authoritarian character and of establishing a democratic Japan
are to be encouraged. In the event that the effectuation of such
changes involves the use of force by the Japanese people the
Supreme Commander should intervene where necessary to ensure the
security of his forces and the attainment of the objectives of the
occupation.

3. Protection of United Nations Interests. It shall be the duty of
the Supreme Commander to protect the interests, assets and rights
of all powers which have participated in the war against Japan and
of their nationals.

4. Publicity as to Policies. The peoples of the nations which have
participated in the war against Japan, the Japanese peoples and
the world at large shall be kept fully informed of the objectives
and policies of the occupation and of progress made in their
fulfilment.

Part III. Political
1. Disarmament and Demilitarization. Disarmament and
demilitarization are the initial tasks of the military occupation
and shall be carried out promptly and with determination. Every
effort shall be made to bring home to the Japanese people the part
played by those who have deceived and misled them into embarking
on world conquest and those who collaborated in so doing.

Japan is not to have an Army, Navy, Airforce, Secret Police
Organization or any Civil Aviation. Japanese ground, air and naval
forces shall be disarmed and disbanded and the Japanese Imperial
General Headquarters, the General Staff and all Secret Police
organizations shall be dissolved. Military and Naval material,
military and naval vessels and military and naval installations
and military, naval and civilian aircraft shall be surrendered and
shall be disposed of as required by the Supreme Commander.

Inventories shall be made and inspections authorized to insure the
complete execution of these [3] as all High officials of the
Japanese Imperial General Headquarters and General Staff, other
High Military and Naval officials of the Japanese Government,
leaders of Ultra-Nationalist and Militarist organizations and
other important exponents of militarism and aggression will be
taken into custody and held for future disposition. Persons who
have been active exponents of militarism and military nationalism
will be removed and excluded from public office and from any other
position of public or substantial private responsibility. Ultra-
nationalistic or militaristic social, political, professional and
commercial societies and institutions will be dissolved and
prohibited.

Militarism and Ultra-nationalism in doctrine and practice
including paramilitary training shall be eliminated from the
educational system. Former career military and naval officers both
commissioned and noncommissioned and all other exponents of
militarism and ultra-nationalism shall be excluded from
supervisory and teaching positions.

2. War Criminals. Stern justice shall be meted out to all war
criminals including those who visited cruelties upon United
Nations Prisoners of War or other nationals. Persons charged by
the Supreme Commander or appropriate United Nations agencies with
being war criminals shall be arrested, tried and if convicted
punished. Those wanted by another of the United Nations for
offenses against its nationals shall if not wanted for trial or as
witnesses or otherwise by the Supreme Commander be turned over to
the custody of such other nation.

3. Encouragement of desire for Individual Liberties and Democratic
Process. Freedom of worship and observance of all religions shall
be proclaimed and guaranteed for the future. It should also be
made plain to the Japanese that ultra-nationalistic and
militaristic organizations and movements will not be permitted to
hide behind the cloak of religion.

The Japanese people shall be afforded an opportunity and
encouraged to become familiar with the historical institutions,
culture and the accomplishments of the democracies.

Obstacles to the renewal and strengthening of democratic
tendencies among the Japanese people shall be removed.

Democratic political parties with rights of assembly and public
discussion and the formation of trade unions shall be encouraged
subject to the necessity for maintaining the security of the
occupying forces.

Laws, decrees and regulations which establish discrimination on
grounds of race, nationality, creed or political opinion shall be
abrogated, those which conflict with the objectives and policies
outlined in this document shall be repealed, suspended or amended
as required and agencies charged specifically with their
enforcement shall be abolished or appropriately modified. Persons
unjustly confined by Japanese authority on political grounds shall
be released. The judicial, legal and police systems shall be
reformed as soon as practicable to conform to the policies set
forth herein and it shall be the duty of all judicial, legal and
police officers to protect individual liberties and civil rights.

Part IV. Economic
1. Economic Demilitarization. The existing economic basis of
Japanese military strength must be destroyed and not be permitted
to revive.

Therefore a programme will be enforced containing the following
elements among others the immediate cessation and future
prohibition of production of all goods designed for the equipment,
maintenance or use of any military force or establishment, the
imposition of a ban upon facilities for the production or repair
of implements of war including naval vessels and all forms of
aircraft, the institution of a system of inspection and control
designed to prevent concealed or disguised military preparation,
the elimination in Japan of those industries or branches of
production which would enable Japan to re-arm for war, and the
prohibition of research and instruction likely to result in the
development of war-making power. Japan shall be restricted to the
maintenance of those industries which will sustain her economy and
permit exaction of just reparations in kind.

The eventual disposition of these existing production facilities
within Japan which are to be eliminated in accordance with this
programme as between transfer abroad for the purpose of
reparations, scrapping and conversion to other uses will be
determined after entry. Pending decision no such facilities either
suitable for transfer abroad or readily convertible for civilian
use shall be destroyed except in emergency situations.

2. Promotion of Democratic Forces. Organizations of labor in
industry and agriculture organized on a democratic basis shall be
encouraged. Policies shall be laid down with the object of
insuring a wide and just distribution of income and of the
ownership of the means of production and trade.

Encouragement shall be given those forms of economic activity,
organization and leadership deemed likely to strengthen the
democratic forces in Japan and to prevent economic activity from
being used in support of military ends.

To this end it shall be the policy of the Supreme Commander:

(a) To prohibit the retention in important positions in the
economic field of individuals who, because of their past
associations, cannot be trusted to direct Japanese economic effort
solely towards peaceful ends and,
(b) To require a programme for the dissolution of the large
industrial and banking combinations accompanied by their
progressive replacement by organizations which would widen the
basis of control and ownership.

3. Resumption of Peaceful Economic Activity. The policies of Japan
have brought down upon the people great economic destruction and
confronted them with the prospect of economic difficulties and
suffering. The plight of Japan is the direct outcome of its own
behaviour and the Allies will not undertake the burden of
repairing the damage. It can be repaired only if the Japanese
people renounce all military aims and apply themselves diligently
and with single purpose to the ways of peaceful living.

It will be necessary for them to undertake physical reconstruction
and basically to reform the nature and direction of their economic
activities and institutions.

Japan will be expected to provide goods and services to meet the
needs of the occupying forces to the extent that this can in the
judgment of the Supreme Commander be effected without causing
starvation, wide-spread disease and acute physical distress.

The Japanese authorities will be expected and if necessary
directed, to maintain, develop and enforce programmes which
subject to the approval of the Supreme Commander are designed to
serve the following purposes:-

(a) To avoid acute economic distress.

(b) To assure just and impartial distribution of available
supplies.

(c) To meet the requirements for reparations deliveries agreed
upon by the Allied Governments.

(d) To make such provision for the needs of the Japanese
population as may be deemed reasonable by the Allied authorities
in the light of supplies available and obligations to other
peoples.

4. Reparations and Restitutions.

Reparations. Reparations for Japanese aggression shall be made:-

(a) Through the transfer-as may be determined by the appropriate
Allied authorities-of Japanese property located outside of the
area to be retained by Japan.

(b) Through the transfer of such goods or capital equipment and
facilities as exist or may in future be produced in Japan and
should, in the opinion of Allied authorities be made available for
this purpose. No form of reparation shall be exacted which will
interfere with or prejudice the programme for Japanese
demilitarization.

In the allocation and transfer of property abroad for reparations
special consideration shall be given to the needs of those Allied
Powers who suffered heavily as a result of Japanese aggression.

Restitution. Full and prompt restitution will be required of all
identifiable property looted, delivered under duress or paid for
in worthless currency.

5. Fiscal, Monetary and Banking Policies. While the Japanese
authorities will remain responsible for the management and
direction of the domestic fiscal, monetary and credit policies
this responsibility is subject to the approval and review of the
Supreme Commander and wherever necessary to his direction.

6. International Trade and Financial Relations. Eventual Japanese
participation in world trade relations shall be permitted. During
occupation and under suitable controls and subject to the prior
requirements of the peoples of countries which have participated
in the war against Japan, Japan will be permitted to purchase from
foreign countries raw materials and other goods that it may need
for peaceful purposes. Japan will also be permitted under suitable
controls to export goods to pay for approved imports.

Control is to be maintained over all imports and exports of goods
and foreign exchange and financial transactions. Both the policies
followed in the exercise of these controls and their actual
administration shall be subject to the approval, supervision and
if necessary direction of the supreme commander in order to make
sure that they are not contrary to the policies of the occupying
authorities and in particular that all foreign purchasing power
that Japan may acquire is utilized only for essential needs.

7. Japanese Property Located Abroad. Existing Japanese External
assets and existing Japanese assets located in territories
detached from Japan under the terms of surrender including assets
owned in whole or part by the Imperial household and the
Government shall be disclosed to the occupying authorities and
held for disposition according to the decision of the Allied
authorities.

8. Equality of Opportunity for Foreign Enterprise Within Japan.

The Japanese authorities shall give all business organizations
whether Japanese or foreign equal opportunity to engage in trade
and shall be required to give equality of treatment as amongst
nationals of all states which have actively participated in the
war against Japan both in the domestic and the overseas trade and
commerce of Japan.

9. Imperial Household Property. Imperial Household property shall
not be exempted from any action necessary to carry out the
objectives of the occupation.