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a means would also cost money and thereby reduce the total value of the assets to be distributed. In any event the wisdom of the hardship test is questionable. The interests of prisoners now in difficulties are looked after by the Ministry of Pensions or by benevolent organisations. Also some form of "means test" would have to be applied, which there is every reason to believe would be very unpopular.

7. In favour of changing the basis of distribution it may be considered that the prisoners of war of the Japanese have always pressed strongly for equal division of these assets on a per capita basis, however small each independent share might ultimately turn out to be. Each individual, moreover, who would receive on this basis about £20, could regard his share as damages recovered by him from Japan for the Japanese breach of international law explicitly recognised by Articles 14 and 16 of the Peace Treaty. It is also worthy of note that the United States and Australia have indemnified ther ex-prisoners of war by a monetary distribution on a per capita basis. This has served to strengthen the stand taken by former prisoners of war of the Japanese in the United Kingdom. Moreover, the views of the all-party Parliamentary Committee on Prisoners of War have been ascertained, and it has been found that all members were agreed that the funds should be applied only to former prisoners-of-war of the Japanese and that distribution should be on a per capita basis (the only disagreement being whether this distribution should be made by the Far Eastern Prisoners-of-War Association or by Her Majesty's Govern- ment). Finally, it may be urged in favour of distribution on a per capita basis that the machinery to carry it out would be simple and that each man would feel that he had received a fair share.

8. There are two arguments which might be put forward against changing the last Government's decision:--

(a) Cases of hardship among former prisoners of-war and civilian internees have been led to expect more than an equal share of the proceeds of Japanese assets and may be disappointed; and

(b) It may well be argued that the sum which is freely at the disposal of Her Majesty's Government should be paid to the Exchequer for the benefit of all United Kingdom subjects.

9. It is possible now that an announcement has been made that some disap- pointment will be caused. Cases of hardship, however, are the proper concern of Benevolent Associations and any case of "war injury" is looked after by the Ministry of Pensions. With regard to the second argument, I submit that, since it has already been decided to devote this sum of money to former prisoners of war, distribution on a per capita basis would seem the more logical method of carrying this out.

10. I therefore recommend that the decision of the last Government to devote the proceeds of the Japanese assets in this country to cases of hardship among former prisoners of war and ex-civilian internees in general should be revoked, and that Her Majesty's Government should distribute the proceeds of Japanese assets in the United Kingdom on a per capita basis to all former prisoners of war or their dependents and to members of the Merchant Navy in Japanese hands during the war and civilian internees or the dependents of both.

11. I invite my colleagues to approve this paper.

Foreign Office, S.W.1,

8th July, 1952.

A. E.

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CONFIDENTIAL

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8th JULY, 1952.

CABINET OFFICE RECORD COPY

66

COPY NO.

CABINET

PREPARATIONS FOR

COMMONWEALTH ECONOMIC CONFERENCE

Note by the Secretary of the Cabinet

The United Kingdom Government has proposed to the other members

of the Commonwealth that a Commonwealth Economic Conference should be held in London in November. In preparation for this Conference Ministers will need to undertake a comprehensive review of our financial, economic and commercial policy; and the Prime Minister has directed that this review and other preparations for the Conference shall be supervised by a Committee of Ministers composed as follows:-

Foreign Secretary (in the Chair)

Commonwealth Secretary

Home Secretary

Chancellor of the Exchequer

Colonial Secretary

Minister of Housing and Local Government

President of the Board of Trade

Paymaster-General

Chancellor of the Duchy of Lancaster.

Other Ministers will be invited to attend meetings of the Committee to discuss matters of direct concern to their Departments.

2.

Mr. O. C. Morland will act as Secretary of the Ministerial Committee.

The Ministerial Committee will be assisted by a group of officials under the direction of Sir Alan Hitchman and drawn from the following Departments

Foreign Office

Commonwealth Relations Off ice

Treasury

Colonial Office

Board of Trade

Prime Minister's Statistical Section.

Economic Section, Cabinet Office.

Mr. S. Abramson (Board of Trade) and Mr. H. G. M. Bass (Cabinet Office) will act as Joint Secretaries to this group. The group will be responsible for preparing papers for the Ministerial Committee.

3.

The suggestion that officials from other Commonwealth countries

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