Evening star., 1945-12-07
Stripping Of Japan
OF Foreign Assets
Proposed by Pau|ey
By the Associated Press.

BY the Associated Press.
TOKYO, Dec Edwin w. Pau
ley, American repatriation COM
missioner, recommended today that
Japan be stripped of all assets
abroad. virtually all chemical, steel
and shipbuilding capacity and half
her electric power and machine tool
industries.
Mr Pauley said in a formal state
ment that he was recommending
this course to President Truman to
destroy any possibility of Japan
ever waging war again and to reim-
burse the countries she victimized.
Equipment built up in Japan dur
ing the past generation consisted of
plants for the purpose of waging
wars of aggression" Mr. Pauley said
and despite all wartime destruc-
tion," there still is more than twice
as much in usable condition as when
Japan started her aggressive course
in Manchuria IA years ago.
Would Remove Surplus.
That surplus must be taken out, -
he declared
These industrial facilities would be
shipped to other countries, along
with all japanese capacity for pro-
ducing many specified light metals,
while all the nations gold and preci-
GUS metal would be sent to the San
Francisco mint to be held pending
decision on its disposal.
Equipment used solely for max
ing arms and ammunition will be
destroyed" Mr.. Pauley stated flatly
Previously Mr.. Pauley had in
dicated that while Japan's indus
trial equipment would not be de-
sirable in the United States ii
would be welcome in China and
the Philippines.
Demllitarization of Japan by re-
moval of her surplus production
potential. Mr. Pauley explained,
will not mean complete de-indus-
trialization
Will Aid Other Countries
On the contrary, he asserted, its
removal, especially to other Asiatic
countries, will help to raise their
living standards without depressing
the standards of Japan-since only
excess capacities are in question.
1 want to be emphatic on that
point"
AS an initial step in his plan to
remove all war production poten-
tialities, Mr.. Pauley said he was
recommending to President Tru-
man an interim program of remov-
ais to be started as soon as the
where, when and how of ship
ments can be determined by Allied
supervisors.
These interim shipments, he ex-
planned, probably will be below the
total sum which Allied govern
ments eventually will allocate as
reparations. Interim removals, he
added, should eliminate all doubts
on the subject of Allied policy, and
set the pattern for implementing
action later.
! Steel Cut Planned.
His program would reduce Japan.
ese steel production from more than
IL ,000, 900 annual tons to 2,500, 900
estimated to be ample for civilian
needs; would remove everythins
from 20 shipyards except what i!
necessary "for the repair of ship.
ping essential to the occupation;
and would cut light metal industries
down to processing OF scrap already
available.
Twenty of Japan's Al moderr
caustic acid plants and the most
modern of its four large solvay soda
ash plants would be removed along
with all coal-burning electric gen.
Grating plants except those needed
as standby substitutes for hydro.
electric plants.
Recommendations for conf1scatior
of assets called for depriving Japan
ese, including the government, tn.
emperor and the imperial house.
hold, OF all holdings outside Japan's
home islands