Reference your numbers 74, 75 [2] and 108 [3] to Minister of
External Affairs, Wellington.

JAPANESE REPARATIONS

There is no possibility of having problem examined by Minister
before the weekend and it may be some days before matter can be
brought to Prime Minister's notice. However following is
Departmental view.

We are in agreement with sentiments expressed in paragraph 1 of
Australian telegram No. 74 (No. 99 to Secretary of State No.376 to
Australian Embassy Washington) and should welcome early
presentation of Australian proposal to Far Eastern Commission.

Although we foresee difficulties in securing adoption of so
comprehensive a plan no feature would seem to us to present an
insuperable obstacle if other Far Eastern Commission countries
could be induced to reach agreement on basis of that proposal. Our
major interest in the question is, we believe, similar to that of
Australia in that we place special emphasis on the need to remove
industrial war potential from Japan as soon as possible. We would
endeavour to adjust our attitude on related matters accordingly.