Message from Paul McNutt to President Harry S. Truman

11 December 1945 From: U.S High Commissioner, Manila. To : The President of the United States. Nr : Unnumbered (110930Z) 1. Reference is made to S-1610, a bill to provide for the rehabilitation of Philippine Islands. 2. After discussions here with Ambassador Pauley, it is our conviction that sub-section (b) of section 106 of this act, dealing with sums received by the United States from the Japanese by way of reparations, is of questionable value. The provisions of sub-section (b) of section 106 are obviously designed to deal with payments in money which might be received from the Japanese by way of reparations. Since it seems practically certain that there will not be any such money payments, but that the reparations program will be based on payments in kind, this section has no practical effect. 3. I recommend that a provision along the lines of that set forth im paragraph 5 below be added to sub-section (b); and that sub- section (b) be clarified so as to make it clear that it only refers to money or bullion. 4. Ambassador Pauley agrees with the provisions of paragraph 5 but feels they should be substituted for, rather than added to sub- section (b), which he feels should be eliminated entirely. 5. The Philippine War Damage Commission, with the approval of the President of the United States, is - 1- -