Ref my memo GSO45.31SD of 30 Jul forwarding SCAP directive no,
five amendment no. seven. Following information reached me from
sources which I have never found inaccurate. One. Regarding
statements of Australian and Japanese Prime Ministers about a
peace treaty there is no repeat no intention of having a peace
treaty and any attempts to bring about would be opposed. Intention
is to give Japanese conditions of peace but without a peace treaty
in order that US Forces may, remain in Japan in role of directing
power against external aggression. A peace treaty would give other
powers right of direct negotiation with Japanese Government and
unless Japan was rearmed might enable other powers to send troops
in to take possession. Two. The Occupation Force is to be entirely
severed from any official dealings with Japanese Government by end
of 1949 and US Forces will merely use present barracks and
training areas in Japan for training of an efficient field force
whose role is protection of Japan from external aggression.