Your 93 and 94 [1] Reparations from Japan.

1. We are in general agreement with the points made in your 93
paragraphs one and two and we agree with your view that the
division of reparations should be [on] a broad political basis and
with your proposal that this should be discussed by Far Eastern
Commission.

2. As regards prior consultation between British Commonwealth
countries we are anxious to avoid giving grounds for other[s] to
treat the British Commonwealth as one unit for purposes of
allocation of reparations and think it would be best if the
suggested discussions could take place as part of the normal
inter-Commonwealth consultation in Washington on Far Eastern
Commission problems. Experts could participate in such
consultation and might continue to work in Washington in relation
to whatever inter-Allied reparations machinery may be set up.

3. We think decisions on reparations should be integrated closely
with economic policy as laid down by FEC as this policy should
determine availability. To effect this any inter-Allied
reparations body should be subordinate to FEC. We do not agree
with what we understand State Department officials have in mind,
viz., the establishment of an independent inter-Allied Committee
to translate FEC reparations policy into detail. [2]

Any such body should be responsible to FEC. [3] 4. Your telegrams
do not mention restitution. We should appreciate your views. We
note that the reparations committee of FEC has set up a
subcommittee on restitution. [4]