The Acting Secretary of State presents his compliments to His
Excellency the Ambassador of Australia and has the honor to invite
His Excellency's Government to appoint a representative to the
Inter-Allied Trade Board for Japan, which was established by the
Far Eastern Commission at its 29th meeting on October 10, 1946,
under the following Terms of Reference:

1. At the request of the United States Government the Far Eastern
Commission hereby establishes the Inter-Allied Trade Board for
Japan. The United States Government will request each of the
Governments represented on the Far Eastern Commission to appoint a
representative to the Board. The Board will meet in Washington,
D.C.

2. The purpose of the Board is to provide easy and rapid means of
consultation between the United States Government as the principal
occupying power and the other Governments represented on the Far
Eastern Commission regarding the disposition of exports available
from Japan and the furnishing of imports required for Japan, which
lie beyond the scope of the Supreme Commander for the Allied
Powers' own authority to arrange.

3. Within the framework of the Potsdam Declaration, policies
established in accordance with the Terms of Reference of the Far
Eastern Commission and the declared objectives of the occupation,
the functions of the Inter-Allied Trade Board for Japan will be to
make recommendations to the United States Government on:

a. The disposition of commodities available for export from Japan;

b. The sources from which commodities shall be imported into
Japan;

c. The best arrangements for facilitating Japanese exports and
imports generally.

All recommendations of the Board involving matters of policy shall
be subject to the approval of the Far Eastern Commission.

EXPORTS

4. In the case of commodities which are in short world supply the
Inter-Allied Trade Board may use any statistical data and consult
with allocating authorities and other similar organizations.

5. In considering the disposition of other commodities which may
be made available for export from Japan, the Board shall consider
any evidence or arguments which may be presented to it by its
members and shall either recommend that the commodity be disposed
of at the discretion of the Supreme Commander for the Allied
Powers or shall recommend an allocation of the commodity which in
its opinion, shall further the objectives of the Allied Powers
with respect to Japan as stated in the Potsdam Declaration and
insure the equitable distribution of the supply among countries
which wish to purchase the commodity.

6. It shall be the responsibility of the Board to make
recommendations as to terms of sale of Japanese exports.

IMPORTS

7. It shall be the responsibility of the Board to make
recommendations as to the terms of purchase of Japanese imports so
as to further the announced objectives of the occupation, giving
full weight to the desirability of minimizing the cost of
procurement.

8. In considering procurement of commodities which are required by
Japan, the Board shall either (a) decide that the commodity can be
acquired at the discretion of the authorities making the purchase
or (b) shall recommend the source of the commodity in such manner
as, in its opinion, shall further the announced objectives of the
Allied Powers with respect to Japan and provide for the equitable
distribution of purchases among the supplying countries.