Sir,

With reference to your teletype No. EX-1815 of July 16† regarding the Japanese peace settlement, I have the honour to enclose for your information a memorandum on Canada and the Far Eastern Commission, indicating Canadian interest in the various aspects of the Commission's work and our participation and contribution to the Commission's activities.

I have etc.
H.H. WRONG

[PIÈCE JOINTE/ENCLOSURE]

Extrait d'une note de l'ambassade aux États-Unis
Extract from Memorandum by Embassy in United States

[Washington, n.d.]

CANADA AND THE FAR EASTERN COMMISSION

I. GENERAL INSTRUCTIONS

When the Far Eastern Advisory Commission was formed in October 1945, the Canadian delegation was instructed as follows: "Canada, as a nation facing the Pacific, is directly affected by developments in the Far East. She is therefore concerned to contribute to reaching whatever settlement may be best calculated to eliminate Japan as a threat to peace, to assist in the formation by the Japanese of a stable and democratic form of government and to provide a basis for conditions of peace and eventual prosperity in East Asia. Thus, while the absence of Canadian occupation forces in Japan and the limited extent of active participation in the war in the Far East may deter the Canadian Government from taking the initiative in bringing forward proposals, especially in the early sessions of the Commission, the Canadian representative should not hesÉtate to make clear Canadian interest and concern."

It was further stated that, while it would appear desirable to ensure the retention of single U.S. military command over Japan during the occupation period (except perhaps in small areas), favourable consideration should also be given to any proposals directed toward the strengthening of the Commission as the agency of international control over occupation policy.

Finally, the Canadian delegation was informed that the Canadian Government gave general support to the United States statement of initial policy as approved by the President and transmitted to the Supreme Commander for the Allied Powers. (This statement was the basis of the Far Eastern Commission's "Basic Post-Surrender Policy for Japan", which was finally approved by the F.E.C. on 19 June, 1947.)

II. CANADIAN INTEREST IN THE F.E.C.

... Canada's interest in the work of the F.E.C. was conceived in terms of an involvement stemming initially from geographic location with consequent specific interests of a vested nature, broadened to include at the next level an interest in Far Eastern stability (a peaceful but economically sound Japan) and ultimately an interest in the Commission itself as an instrument of international cooperation.

Canada's representation on the F.E.C. may therefore be most easily reviewed in terms of these three aspects of the Commission's work.

III. CANADA'S PARTICIPATION IN AND CONTRIBUTION TO COMMISSION ACTIVITIES

(1) Protection of Interests

Specific Canadian interests in Japan are as follows:

(a) Resident commercial or industrial activities (aluminum processing and insurance).

(b) Trade (lumber, silk, etc.)

(c) Missionary activity

(d) Property

(e) Reparations (including restitution of property looted from other areas of the Far East)

F.E.C. deliberations on the treatment of aliens in Japan have involved (a) and (d) above, and while not initiating policy proposals in these fields, the Canadian member of the appropriate committee has endeavoured to see that in consideration of such subjects as taxation of aliens and the removal or destruction of United Nations property (FEC-226/1) Canadian interests were protected insofar as might be consonant with international practice and the balancing of interests as between the Canadian Government and private individuals or concerns. In this latter regard, Canada was instrumental in the adoption of the final form of the policy on "Destruction or Removal of United Nations Property in Japan".

Trade with Japan has been dealt with by the Commission both in the consideration of general export-import policies and in the establishment of the Inter-Allied Trade Board. In connection with the former, the Canadian representatives participated actively in the formulation of policy papers on the "Sources of Japanese Imports" and "Destination of Japanese Exports", to ensure that the criterion of prewar patterns of trade should be taken into account in any control measures which might be applied. Initially following the U.K. thesis that the IAMB should be subordinate to the F.E.C., the Canadian representatives eventually agreed to the U.S. thesis that it would function more effectively as an independent advisory body dealing with technical problems. Since its inception Canada has been represented on it by the Commercial Counsellor of the Embassy. One of the main Canadian interests, both in the IATB and the Commission, has been to hasten the opening of Japan to private trade, and the Canadian representatives on both bodies have consistently supported any proposals which might expedite this.

In connection with the policy paper on Japanese education, the Canadian delegation was under instructions to see that adequate safeguards should be incorporated to protect the position of the missionary institutions which had played such an important role in Japanese education before the war, and it was partly as a result of Canadian support that this policy, in its final form, included the following provision: "Educational institutions of foreign foundation in Japan have played a useful part in the past in widening and deepening the scope of Japanese education, and should be given equal rights to those of Japanese institutions in future."

Finally, in approaching the delicate and vexatious problem of reparations, the Canadian delegation has been in the fortunate position of having gained, through the modesty and realism of the Canadian submission, universal agreement to the share claimed (though the division of shares is by no means settled), and has therefore been able to devote its energies in this field to the more congenial task of assisting in any way possible in the formulation of policies and procedures which would expedite the final settlement. In this latter role, the Canadian delegation has played a minor but not inconsiderable part, and in the development of policy on restitution of looted property, where its relatively neutral position was obvious, has been able to offer substantial assistance. At the moment, aside from supporting and proposing methods of overcoming what appears to be a complete impasse in the solution of the division of shares, the Canadian delegation is endeavouring to obtain approval for a provision in the "Reparations Allocations Procedures" paper which would enable technical experts of the claimant countries to advise SCAP as to those plants and facilities in Japan which would he most useful if made available as reparations.

(2) The Stability of East Asia

On the second level of interest (the creation of a peaceful, democratic and economically "viable" Japan) the Canadian contribution and participation has been mucn more in evidence on the political than on tne economic side. One reason for this has been the fact that Canada has held the vice-chairmanship of Committee No. 3 (Japanese Constitution), which in effect meant the active chairmanship of this committee during the period when it was dealing with the highly complex and very important problem of the adoption of the new Japanese Constitution. While not necessarily taking the lead, Canadian representatives participated actively in the drafting of committee proposals and in the exposition of committee decisions, and played a considerable part in determining the Commission's effective influence upon the ultimate form of the Constitution and the provision for its later review by the Japanese and the F.E.C. This involved questions both of tactics (vis-a-vis the Supreme Commander) and of constitutional content, and it may be said that throughout this phase of the Commission's work, the Canadian delegation endeavoured to achieve a just balance between the obvious institutional requirements of a "democratic" Japan, the views expressed by the Supreme Commander, and the jurisdictional authority of the F.E.C.

In addition, Mr. E.H. Norman, of the Canadian delegation, was responsible for the preparation of a paper which was circulated in the F.E.C. (C4-004 of April 16) containing an analysis of the secret societies of Japan which served as part of the basic information for the committee on the strengthening of democratic tendencies in Japan.

The Canadian delegation also contributed something to the Commission's work on economic problems, and participated actively in the initial stages of the drafting of an emergency statement on the supply of food for Japan.

(3) International Cooperation

As an emerging power in the international scene, Canada is vitally interested in the broad question of international organization, and insofar as the F.E.C. is concerned, has consistently attempted to strengthen the authority and effectiveness of the Commission within the bounds of practicality, making due allowance for the primary responsibility of the United States as the occupying Power. For this reason the Canadian delegation has on a number of occasions taken issue with the United States, not so much on matters of substance as on the question of whether the Far Eastern Commission, as a responsible international body charged with the formulation of policy for the occupation of Japan, should be allowed to discharge its responsibility in an effective way. Examples of this may be found in Canadian action in the Commission on such subjects as food for civilian relief, Commission authority in connection with the new Japanese Constitution, demilitarization of Japan, and, more recently, the reduction of Japanese industrial war potential and Japanese whaling.