Your FEC 88 and 89. Japanese reparations and level of industry.

In reply to Aide-Memoire from United States Embassy asking for our
concurrence in proposals to be submitted to FEC by United States
representative, we have said that the Australian Government will
of course give careful consideration to any United States proposal
submitted to FEC but have pointed out that the United States view
that Japan has no resources surplus to its future peaceful needs,
and that accordingly no further reparations should be exacted from
Japan, is based solely on United States calculations and cannot be
accepted without a thorough survey by other members of FEC of
present economic situation in Japan and its estimated needs.

Meanwhile Australian Government sees no reason to withdraw its
general support for proposals on future
levels of Japanese industry which have been before FEC since end
of 1947 and on which majority of FEC members have long since
reached a substantial measure of agreement and have been awaiting
an expression of United States views.

2. Copy of our reply is being sent by air bag. Copies have also
been passed to United Kingdom and New Zealand High Commissioners
in Canberra.