Evening star., 1949-05-12
u. ). Asks End
.0f Reparations
From japanese
Macarthur Ordered
To Holt Transfers
In Advance Proerom
By Gornett D. Homer

The United States today callec
for an end to reparations from
Japan.
! Mai. Gen. Frank r. Mccoy
American representative on the
tll-nation Far Eastern Commis.
sion. announced this Govern
ment's new policy TO the commits
sion in a 3.00O-word statement
| He also told the FEC that:
/. The United States is direct
ing Gen. Macarthur to stop i'm
mediately deliveries of equipment
from Japan under an advance
transfer program started by the
United States more than two years
ago.
2. It is the American view that
all facilities in Japan previously
earmarked for reparations which
can contribute to Japanese recov-
cry should be utilized as necessary
in Japan's peaceful economy for
recovery purposes"
Program Began i'm i947.
Officials said that it was a fair
inference" to draw from Gen. Nc
Coy's statement that American
policy now is against taking any
further reparations from Japan
at any time.
The advance transfer program,
which the United States put into
effect unilaterally in April, i947.
in an effort to break a deadlock
in the FEC on japanese repara-
tions has resulted in delivery Of
about 10000 machine tools to
China, the Philippines, the Meth
erlands and to Great Britain for
Burma. Malaga and British colo
nial possessions in the Far East,
officials said.
A directive is being sent to
Gen. Macarthur today or tomor-
row terminating this program.
Gen. Mccoy also told the COM
mission that the United States
believes that Japan should be
permitted TO develop its peaceful
industries without limitation. I.
FEC policy decisions now put 4
ceiling on levels of production in
certain specified Japanese indus
tries until October /, ls4g. Amer
ican officials said there is no In
tention to violate that policy. but
that after October there would
be no restrictions on peaceful In
dustries in Japan.
Barriers TO War Kept.
The United States continues to
support the principle that Japan's
capacity to make war should not
be permitted to re-emerge. Gen.
Mccoy told the commission. But
he emphasized that this objective
does not require any limitations
on japanese productive capacity
in industries devoted to peaceful
purposes.
The American policy against
any further reparations from Ja-
pan is based on the conclusion
that Japan will need all her in
dustrial facilities to become self
supporting.
Gen. Mccoy said various sur
veys of the japanese economy
make it clear that the quantity Of
capital equipment in Japan which
could be considered in excess Of
her peaceful needs had been
greatly overestimated" in first
consideration of the reparations
problem. ALI the evidence avail
able, he declared. leads to the in
escapable conclusion that the
japanese economy can be made to
bear additional economic burdens.
beyond those directly related to
meeting its own requirements,
only by prolonging or increasing
the staggering cost borne by the
taxpayer"
Billion Poured Into Japan.
Other officials said the United
States poured more than 81 ,000,-
000, 900 into Japan since VI Day
to meet Japap's civil supply re-
quirernents.
Under present circumstances.
Gen. Mccoy said. even the cost Of
dismantling, packing and trans
See Japan Page A-4.l