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(THIS DOCUMENTS THE PROPERTY OF HIS BRITANNIC MP1T58%VERNMENT)
SECRET
C.P.(51) 97
20TH APRIL, 1951
CABINET
31
COPY NO.
JAPANESE PEACE TREATY
INDIVIDUAL CLAIMS AGAINST JAPAN
Memorandum by the Secretary of State for Foreign Affairs
I was invited on 5th March to consider further, in consul- tation with the Chancellor of the Exchequer and the President of the Board of Trade, whether it was necessary that any public statement should be made at the present stage embodying the decision taken by the Cabinet on 2nd January (C. M. (51) 1st Conclusions, Minute 4) to refrain from pressing for the inclusion in the Japanese Peace Treaty of an obligation on Japan to pay individual claims for compensation for personal injury or ill- treatment or death or for damage to property outside Japan (C. M. (51) 17th Conclusions, Minute 3).
2.
I have consulted the Chancellor of the Exchequer and the President of the Board of Trade who agree with me that the following points for and against making a public statement at this time are relevant:-
Points against:
(a.)
(b)
Points for:
(i)
(ii)
(iii)
It would be contrary to normally accepted practice for
His Majesty's Government to make a public statement of their decision not to pursue individual claims while Peace Treaty negotiations are in progress.
The decision would be bound to cause disappointment in
the country.
The Cabinet's decision referred to in paragraph 1 is the only possible one on any realistic estimate of Japan's capacity to pay. Mr. Dulles is now known to have informed the Philippine Government in February that if they could suggest means whereby Japan could pay their reparation claims of $8,000 millions, which would not involve a charge on the United States taxpayer the United States Government would support them.
An all-Party motion on compensation for British Far
Eastern Prisoners of War has now been put down for early debate, and it will give cause for complaint if reasons for Japan's non-payment of compensation are not fully explained.
Five and a half years have elapsed since the end of hosti-
Page 158ities with Japan and those who havelsoft57 hands of
the Japanese and who have not received compensation should no longer be kept in ignorance of the real position.
4.
139
(ivpage 159 of ie the ) 322 on the subject of individual
Since Cabinet decided on 2nd January to approve
152215 against
(v)
(vi)
Japan, statements have been made in Parliament and in correspondence with M. Ps. and members of the public to the effect that a public statement on this question will, it is hoped, be made at an early date.
In the normal course of our discussions about the Japanese
Peace Treaty, it would be necessary in the near future to inform the United States Government of the Cabinet's decision not to press these claims against Japan. It would also be necessary to inform the Commonwealth Governments, who as a result may themselves wish to make a public statement in advance of the conclusion of the Treaty.
It would be unfortunate if in the course of future negotiations concerning the Japanese Peace Treaty, the attitude of His Majesty's Government on this delicate subject should first become known as a result of indiscretions by other Governments,
As regards the question of Japanese assets in the United Kingdom, His Majesty's Government's view to date has been that their disposal could not properly be considered until a Peace Treaty with Japan had given us the right to liquidate and dispose of them. However this need not preclude us from stating how we propose to dispose of such assets as we may obtain under the Peace Treaty. Since the value of these assets will probably be less than £14 million, their effect when divided up among the thousands of possible claimants would be insignificant. I suggest that the most effective use of the money would be to apply it, in consultation with representatives of prisoner-of-war organisations and societies representing those who were interned by the Japanese, for the benefit of institutions and organisations whose work has been of the greatest help in rehabilitating victims of Japanese ill-treatment and cruelty. This proposal is a departure from the precedent established by action taken to dispose of German and Satellite assets in the United Kingdom. Those assets are to be used to provide a dividend for British pre-war creditors of those countries or their nationals. I recognise that my proposal may therefore attract criticism from British pre-war creditors of Japan but in view of the small estimated value of Japanese assets in this country I am confident that such criticism could not be seriously sustained.
5.
With the concurrence of the Chancellor and the President,
I invite my colleagues to agree:
(i)
(ii)
that a public statement of our decision not to press
individual claims against Japan should be made at an early date, after consultation with Commonwealth and Colonial Governments;
that the last two sentences of paragraph 8 of the draft
statement (C.P.(51) 63) should be amended to state the intention of His Majesty's Government in the following
manner:
"It is our intention to press for a clause in the Peace Page 159 of15&aty to provide for the transfer of Pagsel 59ft5&p His
Majesty's Government, It goes without saying, however,
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