For your information.

1. Yesterday an exclusive United Press interview with Gascoigne
was given prominence in the Nippon Times and the Stars and
Stripes. The report stated that Gascoigne was 'speaking in a
personal capacity'. Gascoigne said that his country particularly
desired immediate restoration of private trade with Japan.

Gascoigne felt that private trade, as free from restrictions as
possible, should be restored at once. British areas need Japanese
goods and raw materials and are ready to supply raw materials and
manufactured articles in Japan.

2. Reparation claims against Japan should not be so heavy as to
ruin the chance of Japan's reconstruction.

3. General MacArthur is doing 'a superb job'; his 'occupation with
understanding has proved itself superior to an occupation with an
iron FIST'.

4. Leading British personnel in Japan feel that occupation has
been satisfactory in the British zone, and that the Japanese
people have demonstrated a bona fide effort to measure up to
Allied terms.

5. Although Japan 'lost a great deal in the War', Gascoigne feels
'optimistic' about the [future] of Japan. The loss of ideals
inflicted by the War was one of the gravest blows the Japanese
suffered.

6. British air interests may eventually be interested in operating
an internal Air Service in Japan since it may be years before the
Japanese will be permitted to operate a Civilian Air Service of
their own.

7. Following the above on the record interview with United Press,
Gascoigne today spoke at Tokyo Press Club Luncheon party off the
record. When asked if he felt that the Japanese were doing their
utmost to restore their economy, Gascoigne referred at first to
uncertainties for reparations and lack of raw materials due to
trade controls but concluded 'the Japanese on the whole have not
done what they could'.

8. He said that at the peace conference, the British Commonwealth
would negotiate as a bloc but Member Nations would probably sign
separately. He envisions the withdrawal of Military Forces from
Japan after the Peace Treaty without endangering democratization.

9. He said that Japan must have a guarantee against aggression and
that protection of the Japanese must fall on the United Nations.

He referred to the possibility of a United Nations Commission with
freedom to go everywhere in Japan.

10. Discussing reparations, he said that Japan must not be
stripped of her industrial capacity to such an extent that she
could not recover.

11. All the above statements were made off the record.

12. Neither before giving the United Press interview nor
addressing the Press Club, did Gascoigne consult me about the
lines he proposed to follow. A number of questions he discussed
are basic to the British Commonwealth Occupation and Post
occupation policy and I feel that Gascoigne's expression of
'British view' on these questions without consulting me makes my
representation of the United Kingdom on the Allied Council unreal.

13. It may have not been merely accidental that Gascoigne recently
presented me to the newly arrived Danish Minister as 'the
Australian representative'.