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302 Australian Government to Gordon Walker

Cablegram 100 CANBERRA, 20 April 1948, 5.55 p.m.

SECRET

JAPANESE REPARATIONS

Following is text of Australian proposal referred to in our
immediately preceding telegram:

1. INDUSTRIAL FACILITIES
(a) Amount available. The total amount of industrial facilities
from Japan made available as reparations should be those already
declared available by the Far Eastern Commission under the interim
reparations removals programme, together with such amendments and
additions as may be made by the Far Eastern Commission by 31st
July, 1948. No further categories should be declared available
after that date.

(b) Distribution. The foregoing industrial facilities should be
divided on the following basis:

1. 3% to every member of the F.E.C.

2. The remaining 67% to be divided among the devastated countries
of the Far East, namely China, French Indo-China, India,
Netherlands Indies, the Philippines, British territories in the
Far East (Malaya, Hong Kong, British Borneo, Ceylon, etc),
Pakistan, Korea (North and South), and Burma. These countries
should receive reparations on the basis of needs and ability to
use the assets received, the allocation to be determined by an
international body of experts set up by the Far Eastern
Commission. This body should seek guidance from the United Nations
Economic Commission for Asia and the Far East. The decisions of
this body should be final, unless changed by the Far Eastern
Commission which would have the right to review an allocation at
the request of any member or claimant country. However, each of
the claimant countries covered in this sub-paragraph 1 (b)ii
should be entitled to receive not less than the proportion of
total reparations from industrial facilities which it would have
received under the United States schedule presented to the Far
Eastern Commission on 6th November, 1947. [1]

3 The remaining members of the Far Eastern Commission, namely
Australia, Canada, New Zealand, U.S.S.R., United Kingdom (except
for her Eastern territories), and U.S.A., should voluntarily forgo
all other claims to reparations from industrial assets.

4. No other country which is not a member of the Far Eastern
Commission should receive reparations from industrial assets in
Japan.

2. SHIPPING
(a) Amount available. The Far Eastern Commission should declare as
soon as possible the amount of Japanese shipping available as
reparations.

(b) Distribution. Shipping should be distributed among all members
of the United Nations which declared war on Japan in proportion to
proven losses of ships in the war against Germany, Italy and
Japan, provided that no member of the Far Eastern Commission
should receive less than 3%.

3. JAPANESE GOLD AND PRECIOUS METALS
(a) Amount available. All Japanese stocks of gold and other
precious metals (other than current production since the
surrender) should be made available to pay occupation costs.

(b) Distribution. These assets should be distributed as an
occupation cost on the following basis:

83% to the U.S.A.

15% to Australia, United Kingdom, New Zealand and India (which
have contributed occupation forces).

1% each to China and U.S.S.R. (as members of the Allied Council
for Japan).

4. CURRENT PRODUCTION
Reparations should not be exacted from Japan through the transfer
of goods which may in future be produced in Japan except that:

(a) shipping which is now under construction should be included in
existing Japanese capital equipment and facilities, if such
shipping comes within the limits of tonnage and speed as
determined by the Far Eastern Commission or is otherwise made
available by the Far Eastern Commission.

(b) the foregoing should not be interpreted to prevent the repair
of reparations goods or other costs connected with reparations
which under decisions of the Far Eastern Commission or in the
opinion of SCAP should be borne by the Japanese Government.

5. EXTERNAL ASSETS
(a) Amount available. All Japanese external assets should be
available for reparations.

(b) Distribution.

1. Each member of the Far Eastern Commission should retain all
Japanese external assets within its borders and should not be
required to give any account thereof
2. Assets in other countries should be notified to the Far Eastern
Commission. Non-enemy countries with legitimate claims against
Japan should be allowed to satisfy those claims up to the amount
of external assets within their borders but to no greater extent.

All Japanese external assets which remain after the satisfaction
of those claims should be pooled and divided equally among the
members of the Far Eastern Commission. The disposition of Japanese
external assets should be supervised by a Committee of five,
consisting of Australia, China, United Kingdom, U.S.S.R. and
U.S.A.

1 See Volume 12, Document 391.


[AA:A1838/2, 479/10, V]
Last Updated: 11 September 2013
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