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  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]  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  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.