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Although Swiss express doubt as to possibility success of renewed requests to Japanese for more favorable exchange rate, Department considers this probably most hopeful possibility in immediate future (ReDeptel 3878 November 14).

It is hoped that a portion of relief supplies sent via Nakhodka and which arrived in Japan on November 11 will reach Shanghai. Intercross has received Japanese assurances that supplies will be distributed as far south as feasible. Efforts are being made to arrange for further shipments of relief in kind.

General repatriation would be most desirable solution and efforts. to bring it about are being continued, but it is feared any such repatriation would be too late to solve immediate problem of excessive cost of financial assistance in occupied China. Department assumes Gorgé keeps Fontanel informed of any progress made in negotiations for repatriation."

41

British Embassy here has received request from British Foreign Office for Department's views as to whether collective approach might be made to Japanese. Foreign Office offered no suggestion as to the terms of any approach. Department had already conferred informally with British Embassy which requested suggestions from Foreign Office and opinion of Netherlands Government in exile, but no reply has yet been received from London. Netherlands Embassy has no information on subject.

Your action under this instruction and any other significant developments in the matter should be reported by telegraph.

STETTINIUS

740.00115A PW/11-2744: Telegram

The Secretary of State to the Chargé in Switzerland (Huddle)

WASHINGTON, December 12, 1944-9 p. m.. 4185. American Interests-China. Reurtel 7784 November 27. Budget of 19,950,000 Chinese [Central] Reserve Bank dollars submitted by Fontanel for December for financial assistance in occupied. China is approved but the Department views with apprehension the necessity of increasing loans to individuals by 60 per cent in one month. It is hoped that the Swiss will be able to make some arrangement to reduce the cost or to prevent it from rising at such a rapid rate (ReDeptel 3878 November 14). Department has no information regarding the arguments which were used by the Swiss in persuading the Japanese that the rate of 18.36 Swiss francs to 100 CRB dollars was unreasonable but hopes something further might be accomplished by the same or similar representations.

41 For correspondence on this subject, see pp. 1081 ff.

The question of the request by Japanese to Swiss to stop assistance to Filipinos will be considered in another telegram.

STETTINIUS

711.94114 Supplies/12-1444

The Department of State to the British Embassy

The Department of State refers to the British Embassy's AideMémoire of December 14, 1944,42 in which is set forth the text of a proposed communication to the Japanese Government outlining a plan under which small quantities of medicines and vitamin concentrates might be dropped from Allied aircraft by night over Japanese-controlled territory if the Japanese Government will undertake to distribute supplies so delivered to Allied prisoners of war and civilian internees and will assure safe conduct and protection to the aircraft used for this purpose.

The American military authorities having given their approval in principle to this proposal, the Department of State offers no objection to the forwarding of this communication to the Japanese Government. WASHINGTON, December 16, 1944.

740.00115A PW/12-1844: Telegram

The Chargé in Switzerland (Huddle) to the Secretary of State

BERN, December 18, 1944-11 p. m. [Received December 19-9:53 a. m.]

8216. American Interests-China. Department's 4185, December 12 and previous regarding unreasonable CRB dollar exchange rate. Foreign Office notice December 15 states Swiss Legation, Tokyo, instructed make representations to the Japanese Foreign Office in effort to obtain more equitable rates for transfer to Swiss Consulate, Shanghai, necessary relief for Americans, British and Dutch.

Swiss Foreign Office suggested Gorgé examine possibility that funds be transferred at rates adapted at [to?] cost of life which would permit establishment fixed budgets in Swiss francs for relief. Gorgé discussed foregoing with Japanese Foreign Office which hesitates take up again this problem with competent Ministries for it sees no possibility of success. Gorgé adds however that Japanese authorities fully understand his representation but that Japanese themselves encounter similar difficulties in making payments to Japanese subjects China.

42 Not printed.

Notwithstanding foregoing Japanese Foreign Office following Gorgé's insistence agreed examine situation and give reply in near future.

HUDDLE

711.94114 Mail/12-2144: Telegram

The Chargé in Switzerland (Huddle) to the Secretary of State BERN, December 21, 1944-5 p. m. [Received 6:40 p. m.]

8254. American Interests-Japan-Prisoners of War Mail. Your 4107, December 5. Foreign Office note December 19 quotes following message December 15 from Gorgé (translation from French):

"According to Japanese Foreign Office, mail for United States and possessions will henceforth be directly addressed according agreement with Soviet authorities to New York via Moscow-Tehran. Mail will be sent from Shimonoseki in American postal bags and Japanese request United States return Japanese postal bags forwarded United States before war. Mail from America via Moscow has already reached Japan." 43

HUDDLE

711.94114A/12-2344: Telegram

The Chargé in Switzerland (Huddle) to the Secretary of State

BERN, December 23, 1944. [Received December 24-6:25 p. m.]

8303. Am[erican] Interests-Far East. Foreign Office note December 22 states Swiss Legation, Tokyo, informed by Japanese Foreign Office that American POWs and civilian internees are authorized since November 15 send and receive telegrams to and from families.

Legation inquiring whether foregoing applies POW and internees detained throughout Far East by Japanese or only those held Japan."4 HUDDLE

740.00115A PW/12-2644: Telegram

The Chargé in Switzerland (Huddle) to the Secretary of State

BERN, December 26, 1944-6 p. m. [Received 6:27 p. m.]

8341. American Interests-China. De Pury this afternoon discussed with MacKillop, British Counselor, Van Lynden, Dutch Secre

43

'In telegram 92, January 5, 1945, to Bern, the Department stated that mail for the Far East would be despatched in Japanese postal bags (711.94114 Mail/ 12-2144).

44

Telegram 296, January 15, 1945, from Bern, reported the authorization applied to persons detained in Japan and Japanese-administered territory (711.94114A/1-1545).

tary, and Tait following proposal in order obtain reaction three Governments concerned (Legation's 7386, November 7; 8216, December 18; and 8321, December 24 45):

Swiss proposal is that future relief Shanghai not exceed amount for December (approximately 13,000,000 Swiss francs) for relief about 8,000 British, 2,000 Americans and 300 Dutch. Such additional needs as might be necessary to be purchased by Fontanel on open market. In pointing out possible results, De Pury indicated that while Japanese might consider fictitious rate thus far effective constitutes sufficient face-saving and consequently that they might possibly be inclined to tolerate open market transactions as indicated above, should, on the other hand, this not be so and they learned of Fontanel's purchasing open market, following would doubtless occur:

(1) Fontanel's position would undoubtedly be seriously compromised.

(2) Japanese might stop all further relief.

De Pury stated January 1945 requirements for United States nationals alone amount to 4,590,000 Swiss francs. He said Swiss prepared to accept possible compromise Fontanel's position and while probable Japanese would ultimately learn should his proposal be placed in effect, this would doubtless provide some months relief from present increasingly difficult position.

Representatives all three Legations inclined accept Swiss proposal. Please telegraph urgently instructions.

HUDDLE

711.94114A/12-2944: Telegram

The Chargé in Switzerland (Huddle) to the Secretary of State

BERN, December 29, 1944-9 a. m. [Received 11:21 a. m.]

8404. American Interests-Far East-Prisoner of War Financial Relief. Department's 4032, November 29. Foreign Office note December 23 received December 26 states Swiss Minister, Tokyo, recently telegraphed he requested Japanese Foreign Office authorize monthly transfer following sums: (a) For prisoners of war detained Tokyo 60,000 yen, Osaka 85,000, Fukuoka 45,000, Hakodate 4,000, Formosa 12,000, Manchukuo 42,000, Malaya 300. (b) For civilians interned Burma 300 yen.

Regarding foregoing assistance Gorgé observes:

1. Japanese Foreign Office has on various occasions repeated that relief authorized should not exceed 20 yen. Under these conditions

45 Telegram 8321 not printed; it reported that Mr. Fontanel's budget for relief expenditures in January 1945 amounted to 50,020,000 CRB dollars, a figure based on an 80% increase in the cost of living during December. This budget was approved by the Department in telegram 167, January 11, 1945, 9 p. m. (740.00115A PW/12-2444)

requests to increase relief to 43 yen (equivalent $10) would only result new examination by military authorities and would risk delay transmission funds. Swiss Legation, therefore, requested authorization send immediately at least half sums indicated above if competent Japanese authorities do not perceive possibility authorize without delay transmission 43 yen per prisoner of war.

2. Gorgé emphasizes that arrangements above indicated only include Americans not yet assisted. Consequently internees Japan, Hong Kong, Philippines not included.

3. Regarding Indochina, Gorgé refers contents Legation's 8374, December 28, 10 a. m.,46 and adds that internees at Singapore already assisted by International Red Cross.

4. Gorgé stresses that funds must be sent camp commanders and notes furthermore that delivery, et cetera, by Swiss Legation impossible view lack all articles on Japanese market. Purchases mentioned in the Legation's telegram 6435, September 27,47 for civilian internees at Kobe made on black-market with exceptional police authorization. HUDDLE

740.00115A PW/12-2744: Telegram

The Secretary of State to the Chargé in Switzerland (Huddle)

WASHINGTON, December 29, 1944. 4369. American Interests-Far East. Request that Swiss Government inform Japanese Government that United States Government has noted on various occasions attitude of Japanese Government toward protection or assistance to be extended to persons of Philippine ancestry who feel that they owe allegiance to United States Government and on that account seek protection and assistance.

So far as the United States Government can determine, policy of Japanese Government is formulated without reference to legal right of individuals to claim allegiance to state of which they are nationals and of state to recognize that allegiance by extending its protection. United States Government wishes to point out that it has recognized Japanese nationality of Soon Ye Kim, a person of Korean ancestry who was repatriated on the Gripsholm in 1943; of Saburo Henry Mittwer, a person of American ancestry; and of Vincente Diaz, otherwise known as Jose Ingullardo, and Komakichi Okomoto, a person

46 Not printed; it reported that Gorgé was trying to arrange to send to the Swiss Consulate at Saigon sufficient funds to permit monthly payments of 43 yen, the equivalent of $10, to each prisoner of war in Indochina (711.94114A O.T./12-2844).

47 Not printed.

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