Minister from Macmahon Ball 10 [1]

SECRET IMMEDIATE

The 9th meeting of the Council held on July 10th (see my ACJ.20)
in comparison with recent meetings showed distinct degeneration in
tone and constructive results achieved. The first indication of
this was conveyed in Atcheson's reaction to my remarks on Item 1,
integration of repatriates into the national life of Japan. I
tried to make it as clear as possible that I felt this was a
problem that could not be considered on its own, that task of
finding work for soldiers was only part of the general
unemployment problem and that the unemployment problem was only
part of the larger economic one and could not be separated from
either. But in [case we should appear to be folding] [2] our
hands, I did put forward eight specific proposals that any
practical, well-trained economist would readily think of to meet
such a situation emphasising that they were incomplete measures
and could not go to the heart of the problem. During most of the
time I was talking Atcheson paid no attention but was turning over
papers and talking with his State Department assistant. When I had
finished he looked up and said that he could not understand my
line of argument and expressed disappointment that no 'specific
and concrete' proposals had been made. I handed him my list of
proposals and asked that I be permitted to go on record as saying
that I was surprised and disappointed at his attitude. Placing of
[four] item[s] on the agenda on which no one but a technical
expert could give acceptable advice and which appeared to raise no
questions of vital policy is a move by S.C.A.P. which is difficult
to fathom. The intention seems either to bog the Council down in a
series of matters [of important] but routine administration in
which it could only get further advice from S.C.A.P.'s own
officers or by other authorities outside Japan or else to reduce
its deliberations to absurdity either of which courses would have
the same effect. Third disquieting aspect of the meeting was
Atcheson's revival of the charge that Derevyanko is using the
Council for Communist propaganda activities. Programme of
industrial reform he put forward was an extremely mild one and it
was hard to escape the conclusion that a clumsy attempt was being
made again to isolate the Russians at the expense of the Council's
dignity and of diplomatic usage.