FOREIGN OPERATIONS ADMINISTRATION
OFFICE OF THE DIRECTOR
.
WASHINGTON 25, D.C.
June 29, 1954
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Special Compensatory Relief and Rehabiliation
Assistance for Japan
On March 1 a small Japanese fishing vessel with a crew of
23 received a deposit of radioactive ash several hours after the
crew had observed the tremendous flash and explosion resulting from
a nuclear test conducted by the United States at Bikini. After
, several days, some of the members of the crew began to suffer from
skin burns and were found upon arrival in Japan to have been injured
@s a result of the nuclear test.
The United States has indicated
to the Japanese Government its willingness to provide compensation,
without admission of any liability, for this and other damage resulting from the Bikini incident. The State Department has been
conducting informal negotiations with the Japanese Foreign Office.
Japan has estimated total direct personal and property damage to
be about $800,000, with an additional $6,000,000 of indirect damage
resulting from loss of profits by the fishing industry, depressed
prices, and governmental expenditures.
Under the circumstances
described by the American Embassy in Tokyo, and in view of the
great importance of this matter in United States-Japan relatims,
and in view of its corresponding importance to the security of the
United States, the Department of State has concluded that a final
compensation settlement of $750,000 to as much as $1,000,000 would
not be unreasonable.
The Operations Coordinating Board has considered this problem
at length, and has concluded that the promptest and most desirable
‘method of compensating the Japanese nationals injured in the
Bikini incident would be through the furnishing of not more than
$1,000,000 worth of relief and rehabilitation assistance under the
terms of Section 513(b) of the Mutual Security Act of 1951, as
amended.
:
Accordingly, it 1s recommended that the President determine,
pursuant to Section 513(b), (1) that up to $1,000,000 of the funds
available under the Mutual Security Act may be used for the purpose
of furnishing special assistance to Japan for the compensatory
relief and rehabiliation of Japanese nationals who sustained per-
sonal and property damage as a result of the recent nuclear test
in the Marshall Islands, without regard to the requirements of the
Mutual Security Act or any other Act for which funds are authorized
by that Act, and (2) that the use of these funds is important to
the security of the United States.
In the event that you make
this determination, it is contemplated that the funds to be used