Please pass the following message to Marshall [1] from Ambassador
Butler. It is text of message given to Ambassador by Dr. Evatt.

Begins: Except for the formal conclusion which will take place in
public tomorrow, the British Commonwealth Talks on the Japanese
Peace Settlement have concluded. The countries attending were
Australia, United Kingdom, Canada, South Africa, New Zealand,
India, Pakistan and Burma. The proceedings have been in secret
session throughout, therefore the newspaper reports have been very
sketchy and often somewhat inaccurate. The broad result of the
Conference is to confirm the initiative of the United States and
of General MacArthur in moving towards an early settlement with
Japan, which initiative has been supported throughout by myself.

2.Conference accepted the necessity and desirability of an early
Peace Conference, believing that problems in relation to Japan are
less complex and present fewer difficulties than those in relation
to Germany. The democratic procedure of the two-thirds majority at
the Conference of the nations who took part actively in the
Japanese War is accepted. Wrapped up in this is the denial of any
veto right.

3. With two main exceptions, territorial changes are covered in
principle by the Cairo, Yalta and Potsdam Agreements. Despite the
secrecy of the Yalta Agreement, it looks as though it must be
accepted. Australia has pressed the view that the chain of islands
between Japan and Formosa should be in the sovereignty or at least
exclusive control of the United States, and, similarly, the chain
of islands joining Japan to the Marianas should also be under the
sovereignty or exclusive control of the United States. These would
give the United States permanent control over Okinawa and Iwo
Jima. Quelpart might also come in the same category as these two
important groups of islands.

4. On the future of Japan, it has been felt that demilitarisation
and disarmament have been completed in substance owing to General
MacArthur's outstanding work, and that, although it will be
necessary to make special provision in relation to certain
industries with obvious war potential, at the same time it should
be possible to give the Japanese people an opportunity to become
economically self-sufficient to maximum degree.

5. It is felt that General MacArthur has established the frame-
work of democratic institutions and that, after the peace
settlement, the Supervisory Commission of Representatives of the
Governments directly concerned should be able to assume the role
of advising the Japanese Government and guiding it in the proper
development of these basic institutions as provided for in the new
Japanese constitution.

6. With regard to the Supervisory Commission itself, there is a
general feeling that this body can continue the pioneer work
already performed during the occupation period.

7. With regard to the liquidation and ultimate winding-up of
occupation, I strongly expressed the view that the United States'
views would have to be first ascertained, as I know how strongly
General MacArthur feels on many of these points. Accordingly,
there has been no attempt to reach any decision on occupation or
control, still less any attempt to bind each other as a group in
any direction.

8. As you know, Australia has always recognised the leadership of
the United States in the Pacific Area. At the same time, under
United States leadership, the second most active role in the war
under the command of General MacArthur was taken by Australia: if
the United States decides to continue occupation forces after the
Peace Treaty in bases near Japan or even in Japan, Australia would
probably continue its share in obligations under American command.

9. I shall be leaving for the United States in a few days for the
Assembly meetings and should be glad to furnish any further
details for the information of President Truman or Mr. Marshall.

10. The broad fact is that the whole Conference, strongly urged by
Australia, has frankly recognised United States leadership, while
at the same time believing that the United States in its turn is
quite aware of the relative contributions of the Pacific Nations
towards ultimate victory and that proper account of this will be
taken in all negotiations relating to the Peace Treaty. Therefore,
I feel that the Conference has been an outstanding success from
the point of view of United States - British Commonwealth
relationships. Conference accepted my general assessment of
MacArthur's outstanding achievement in Japan. It also favoured the
general principle of peace-making which, in conjunction with
United States Government and General MacArthur, I have endeavoured
to state previously and publicly. Ends.