166 Acheson to Makin

Letter WASHINGTON, 16 October 1946

The Acting Secretary of State presents his compliments to His Excellency the Ambassador of Australia and has the honor to invite His Excellency's Government to appoint a representative to the Inter-Allied Trade Board for Japan, which was established by the Far Eastern Commission at its 29th meeting on October 10, 1946, under the following Terms of Reference:

1. At the request of the United States Government the Far Eastern Commission hereby establishes the Inter-Allied Trade Board for Japan. The United States Government will request each of the Governments represented on the Far Eastern Commission to appoint a representative to the Board. The Board will meet in Washington, D.C.

2. The purpose of the Board is to provide easy and rapid means of consultation between the United States Government as the principal occupying power and the other Governments represented on the Far Eastern Commission regarding the disposition of exports available from Japan and the furnishing of imports required for Japan, which lie beyond the scope of the Supreme Commander for the Allied Powers' own authority to arrange.

3. Within the framework of the Potsdam Declaration, policies established in accordance with the Terms of Reference of the Far Eastern Commission and the declared objectives of the occupation, the functions of the Inter-Allied Trade Board for Japan will be to make recommendations to the United States Government on:

a. The disposition of commodities available for export from Japan;

b. The sources from which commodities shall be imported into Japan;

c. The best arrangements for facilitating Japanese exports and imports generally.

All recommendations of the Board involving matters of policy shall be subject to the approval of the Far Eastern Commission.

EXPORTS

4. In the case of commodities which are in short world supply the Inter-Allied Trade Board may use any statistical data and consult with allocating authorities and other similar organizations.

5. In considering the disposition of other commodities which may be made available for export from Japan, the Board shall consider any evidence or arguments which may be presented to it by its members and shall either recommend that the commodity be disposed of at the discretion of the Supreme Commander for the Allied Powers or shall recommend an allocation of the commodity which in its opinion, shall further the objectives of the Allied Powers with respect to Japan as stated in the Potsdam Declaration and insure the equitable distribution of the supply among countries which wish to purchase the commodity.

6. It shall be the responsibility of the Board to make recommendations as to terms of sale of Japanese exports.

IMPORTS

7. It shall be the responsibility of the Board to make recommendations as to the terms of purchase of Japanese imports so as to further the announced objectives of the occupation, giving full weight to the desirability of minimizing the cost of procurement.

8. In considering procurement of commodities which are required by Japan, the Board shall either (a) decide that the commodity can be acquired at the discretion of the authorities making the purchase or (b) shall recommend the source of the commodity in such manner as, in its opinion, shall further the announced objectives of the Allied Powers with respect to Japan and provide for the equitable distribution of purchases among the supplying countries.

[AA:A1067, ER46/13/13/1]