Startling Recommendations By American Experts

Chronicle (Levin), 11 March 1948, Page 5

Startling Recommendations By American Experts

Received Wednesday, 9.55 p.m, W A SHINGTGN, Mar. IG. ' Tlie serapping ot' the present allied policy on Japaiiese reparations and the rebuilding oi' key Japanese iiidustries sueh as steel to levels higlier than their waitiri! e peak is leeomrnended in a report released by tiro Seeretary ot' the .' rmy (Mr. Kenneth Royall). _ _ The report, whieh is kiiown as f ' the . Strike Report, ' ' was pre- . pared by a civilian group operating as '*'(.) verseas ronsnltants Ineorpo rated . " Tb e report was prepared under contract ,to the Arinywhicli is re])orted to have allowed a niaximum oi' 650,000 dollars i'or the job. The report is in fine with the trend in some Government quarters and in business eircles I'or rebuilding Japan into a greai industriaj nation with a "controlled" war potential. This eontrasts with the present allied policy whieh aims to eliminate the war potential and rebuild Japan into a nation of eonsunier industries. The report 's basie prineiple is that the present United Htates policy of Japanese reparations. and the future level of indtistry— ' whieh have been approved by; the Far Fastern Commission — shouid be junked because it would5 pre-'-J vent Japan t'rom Teaching a selfsustaining economy within a reasonable period. The present' United States and F.F.F. (Far .Faste.rn Commission) policy is based on the theory that Japah's indtistry always was top heavy in industries valuable only for w.a-r. Tlis s policy was developed from a, i'e))ort wlncli Mr. Fdwin Pauley made when he was President Truman 's personul rep,re.sentative on J a p a n ese reparations . Concurrently, with the ' release by Mr. Royall of tlie Strike Re])ort Ihe State Department last night released tlie text .of tlie Pauley report.

■ The United Press correspondent in Washington says a big row between tht Army and State Departlhent on the reparations issue is in prospect. There have been in--dieations that influential meinbers of the armed serviees agree with the philosophy of tlie Strike Report to build up Japan into a powerful industrial nation, Important members of Congress ar,e expected to approve any " policy which would stop the remoyal oi reparatiops ' frpfU. Japan, Repre v . sentative spollesihen " of the-' btisi- ' ness world also favour a more, potent Japan. The correspondent" say.s, how ever, that even if the United States reversed its poliey there is little possibility that it could get the F.E.C. to change. China. which has a veto in the F.B.C.. stands to get the largest ehunk of reparations. The United States favours giving China -30 per eent (The report is ealled tlie Strike Report because the ehairman oi Overseas Consultants Ineorporated is Mr. Uliffiord Strike.) -