Japanese Proposal for Post-Occupation Army and Military Air Force
and Japanese Activities in the Palau Islands.

1. (a) Your F.E.C. 130(a) and (b). This information was reported
by Macmahon Ball on 16th April following a conversation with
Asakai Koichiro [1], a senior Japanese Foreign Office official who
is engaged in preparing draft proposals on the Peace Settlement
for the Japanese Government.

(b) A Press correspondent in closest confidence told Macmahon Ball
on 15th April that the Head of the United Kingdom L.M. had
remarked that 'it would be desirable to make some arrangement by
which the Japanese would be permitted sufficient armed forces to
protect them against surprise attack from Russia'-(1(b) for your
information only).

(c) A Press report on 18th May states that a Japanese Foreign
Office official has sounded out various Allied quarters on their
reaction to the establishment of a Japanese army of 100,000 and a
small military airforce to take over the work of the American and
British forces when occupation ends. Such a force would be used to
maintain order and control smuggling.

2. A Kyodo radio broadcast of 13th May reported that 'in order to
assure the supply of rock phosphates for Japan, SCAP decided that
all work with regard to the management of the rock phosphate
industry on Angaur Island in the Palau group shall be carried out
within the responsibility of the Japanese Government under SCAP
control. This step is the first since the end of the war,
permitting Japanese enterprise overseas. The fact that this step
has been taken prior to the conclusion of a peace treaty, is due
to the very kind intentions of the SCAP authorities which are
trying to effect the reconstruction of Japan as soon as possible.

In order to put this into practice, SCAP has set up an
investigation mission which has left for Angaur Island on May 10th
and which is expected to return at the beginning of June.'
3. We are generally concerned at such trends in Japan and note a
persisting tendency to discuss matters which should be decided at
the Peace Settlement. Please inform State Department of the above
report making firm protest and advising them that our attitude to
the Japanese proposal for a post-occupation army and military
airforce is as follows:

(a) Future control of Japan and military protection of Japan are
matters to be decided at the Peace Settlement.

(b) We strongly oppose any suggestion to re-establishment Japanese
army or airforce. We agree with view expressed in Article 1 (a) of
proposed Byrnes 25 Year Treaty for the disarmament and
demilitarisation of Japan. [2]

Part 3, para. 1, sub-para 2 on page 4 of the Proposed Basic Policy
Paper also refers. [3]

Reference the Palau Islands see my immediately following telegram.

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