> hr ate, jaeMEoa April 22, 1054 MUMORANDUM FOR: Mr. Gerard C. Snith Department of State Tie Commission has noted Ambassador Allison's cables Nos. 2522 of April 15 and 2513 of April 24, and believes thet the fmbassador’s recomiendetion, that nesotietions be undertaken for a liwap-sua settlement of the compensation clains arising out of the Fulairyu Maru incident, indicates appropriate approsch to this problea. In the course of a meeting of representatives fron the ftomic Enerry Cammission, State Department, and Purecu of the Eudget on April 20, it was determined, as you are evere, thet the nefotia- tion of a finsl ilump-sim settlenent with the Japanese Covernment, including a review of the sources fra Which funds would be made evailable for this purpose, Talis properly within the scope of the State Departacnt's functions. In this cox“nection the Comission wishes to emphasize its willinmness to lend whctever technical acsistence my ve required. fig you know, by letter dated March 26, 1953 froa the General Manaper to the Secretary of State, the Camnission transferred to the Departacnt (25,000 with a view that these funds vould te used by the Ambassador as ssistance to hin in obteining te cooperation c? the Jananese Govermacnt an furthering the Comaission's otjective of lcarning cs rch as possible onucerning the effects of this incident. It is our umderstanding thet no interia cammensntion hes Leen paid from these funds and in view of the favassacor's proposal to undertake nevotietions for a luop-sum settlement, 4% onppears that the funds transferredto the Derertment will not Le needed for the puxpeses indicated in the Generel Mansrces's letter oP March 25. ke oa not to request the return of theese funds at this tine since an oce.Sion may arise in wuich the Cawnission's research cvjective descriied in ihe Merch ti 25 letter might te facilitated by the usor this money. In the mubile, of course, it should be understogk:tect these funds f.culd not Le used as a part of the lusp-sua ngsegs covering long tera ana fincl settilenent. “ES Joon A. Ut, ving oS CC: AAVells/GC J.A.Miller/F H.C .Brown/BM C& Pcs ARCEVES 7 SY aSE Qos’ SOLE & CLASSIFICATION CANC LEDs TELE BE 3 / BY AUTHORITY OF =Hiiaay DATE = . it 326 US ATOMTC TXERCY COMAGS Soy fcucetion ay rox__ an DAM_- Qrlo -1F-3 Ray 3 io. MRA “l<- G 45d Red Eyprourto he diabwgrteds Maredy SH DOE ARCHIVES 4]

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