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SECRET DECLASSIFIED E.O. 11652, Sec. 3(E) and 5(D) or (E) Dept. of State letter, Aug. 10, 1972 By Date 721.75 4 December 1945 From: Ambassador Edwin W. Pauley To : Justin R. Wolf, Care Map Room, The White House, Washington. Nr : CA 55577 1. I have discussed with General MacArthur and now propose to recommend that the following decree be issued by SCAP vesting Japanese external assets in accordance with Paragraph 46 of the Joint Chiefs of Staff Directive of November 3 (130/15): HERE NATIONAL ARCHIVES AND DECREE VESTING JAPANESE EXTERNAL ASSETS RECORDS of SERVICE PREAMBLE Whereas, in order to promote and maintain international peace and collective security in the post-war world and to carry out the pro- visions of the Cairo Declaration of December 1, 1943, the Potsdam Decla- ration of July 26, 1945, and the Instrument of Surrender of September 2, 1945, it is essential to eliminate Japanese ownership and control of property outside of Japan, of whatever nature and wherever located. Now, therefore, the Supreme Commander for the Allied Powers (hereafter referred to as the "Supreme Commander"), in the exercise of his powers as the supreme government authority of Japan, orders as follows: ARTICLE ONE ESTABLISHMENT OF OFFICE OF CUSTODIAN. There is hereby constituted an agency designated "Custodian of Japanese External and Foreign Exchange Assets" (hereafter referred to as the "Custodian"), under the authority of the Supreme Commander. Subject to the powers of the Supreme Commander, the SEORET -1-