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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
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