FEC.140.

Our 1092 (FEC. 139)
1. Today Allison, Director of State Department Office of North
East Asian Affairs gave us aide-memoire requesting and urging
Australian support for United States proposal [1] which would
permit the Japanese Government with the approval of S.C.A.P. to
appoint agents in any country willing to receive them for purposes
of facilitating Japanese trade and/or handling matters affecting
the civil s[tatus] [2] or property rights of Japanese nationals.

Following are main points of aide-memoire-
(a) Japan is unusually dependent upon foreign trade and
establishment of trade offices abroad will facilitate trade,
(b) trade agents in countries with large Japanese populations
would relieve such countries of administrative burden of handling
matters affecting resident Japanese nationals,
(c) S.C.A.P. has recently suggested that United States invite
Japanese Government to establish trade offices in New York, San
Francisco and Los Angeles,
(d) United States consider that it must shortly reply
affirmatively to S.C.A.P.'s suggestion in (c) above and hopes that
other FEC powers win also agree upon the desirability of such
action.

2. Allison said he appreciated Australia's dislike of piecemeal
arrangements in absence of peace treaty but that he felt that
establishment of trade offices was a practical matter which would
not prejudice any issue which might be discussed at peace
conference. He added that United States was actively preparing its
views on peace treaty and hoped shortly to be in a position to
discuss the matter with friendly powers. He was not able to say
how soon this might be nor would he comment on press statement
which we have recently reported.

3. If as a result of talks with Dening [3] you feel that United
States is making honest effort to bring about peace treaty with
Japan, it might be a good move to support United States proposal
referred to in paragraph 1 above at the same time making it clear
that Australia has no intention at this stage of receiving
Japanese Government trade agents.