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Enclosure to Tokyo's

Despatch No. 806,

November 19, 1949.

. No comment.

. Deletion of paragraphs 1, 2, 3, and 6 is recommended.

The legal basis of paragraph 1 is not apparent. The part of the substance of this paragraph which appears to us desirable to retain has been incorporated in the suggested alteration of Article 31 above.

Paragraph 2 of Article 41 appears gratuitous and therefore undesirable.

Paragraph 3, which would require the Japanese Government to compensate Japanese nationals whose property abroad is seized, is in our opinion unrealistic. We believe that the Japanese Government in its present economic condition would find this burden beyond its capacity.

Paragraph 6 appears unnecessary and therefore undesirable. The trusteeship agreements ought to be able to stand on their own feet.

Paragraph 4 refers to Annex VIII. It is recommended that Annex VIII be reduced to accord with the sense of the proposed revision of Article 31.

Paragraph 5 refers to Annex IX, the retention of which is recommended.

. No comment.

. We are skeptical concerning the proposed Arbitral Tribunal and consider that the extension into the peace, for a period of years, of a means of adjudication which is imposed by the treaty would tend to protract important issues which ought to be finally disposed by the peace settlement.

. No comment.

. No comment.

. Deletion recommended for reasons included in our discussion of Article 1 above.

. No comment. .