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DECLASSIFIED E. O. 11652, Sec. 3(E) and S(D) or (E) TOP SECRET Dept. of State letter, Aug. 9, 1973 By NLT. HC , NARS Date 6-25-75 PART III - KOREA POLITICAL The major political problem in Korea is that of carrying out the Moscow Agreement of December 1945 for the formation of a Provisional Korean Government to be followed by a Four-Power Trusteeship over Korea. The United States-Soviet Joint Commission, es- tablished in accordance with that Agreement, reached a deadlock in 1946 in the effort to implement the Moscow Agreement due to Soviet opposition to consultations with the Com- mission by all Korean democratic parties and social organizations, as provided for in that Agreement. Soviet motives have been to eliminate the extreme rightist groups in the United States zone from consultations and subsequently from participation in the new gov- ernment, thus ensuring a Communist-dominated government in Korea. Soviet objections to such consultations have been based on the rightist groups' openly expressed opposition to trusteeship, while the United States has taken the position that to disqualify these groups would deprive a large section of the Korean people of an opportunity to express views regarding their government. A resumption of the Joint Commission meetings in May 1947, following an exchange of notes between Secretary Marshall and Foreign Minister Molotov, resulted in a further deadlock on the same issue, although these notes had established a formula which would have permitted participation in consultation by the rightist groups in question. After the Soviet Government failed to reply to Secretary Marshall's note of August 12 requesting the submission by the Commission of a joint status report or separate reports by each Delegation, the United States Delegation on August 20 transmitted a unilateral report to Washington. An American proposal then made to China, the United Kingdom and the Soviet Union for a Four-Power Conference to discuss Korea has been agreed to by China and the United Kingdom but has been rejected by the Soviet Union. Internally, the Korean problem has been complicated by the Soviet establishment of a Communist regime in North Korea and by the machinations in South Korea of Commu- nist groups, openly hostile to the United States. The terrorist activities of extreme rightists, who have strongly opposed trusteeship, have continually obstructed the efforts of United States authorities. The latter, in accordance with their Directives, are endeavoring to turn over to Koreans as rapidly as possible full administrative responsibility in govern- mental departments. In consonance with this plan they have organized an interim Korean legislative assembly and in general, are striving to carry out a policy of "Koreanization" of government in South Korea. /NATIONAL ARCHIVES AND RLCORDS SERVICE' ECONOMIC " South Korea, basically an agricultural area, does not have the overall economic re- sources to sustain its economy without external assistance. The soil is depleted, and im- ports of food as well as fertilizer are required. The latter has normally come from North Korea, as have most of the electric power, timber, anthracite and other basic products. 12 TOP SECRET

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    "ocrText": "DECLASSIFIED\nE. O. 11652, Sec. 3(E) and S(D) or (E)\nTOP SECRET\nDept. of State letter, Aug. 9, 1973\nBy NLT. HC , NARS Date 6-25-75\nPART III - KOREA\nPOLITICAL\nThe major political problem in Korea is that of carrying out the Moscow Agreement\nof December 1945 for the formation of a Provisional Korean Government to be followed\nby a Four-Power Trusteeship over Korea. The United States-Soviet Joint Commission, es-\ntablished in accordance with that Agreement, reached a deadlock in 1946 in the effort to\nimplement the Moscow Agreement due to Soviet opposition to consultations with the Com-\nmission by all Korean democratic parties and social organizations, as provided for in that\nAgreement. Soviet motives have been to eliminate the extreme rightist groups in the\nUnited States zone from consultations and subsequently from participation in the new gov-\nernment, thus ensuring a Communist-dominated government in Korea. Soviet objections\nto such consultations have been based on the rightist groups' openly expressed opposition\nto trusteeship, while the United States has taken the position that to disqualify these\ngroups would deprive a large section of the Korean people of an opportunity to express\nviews regarding their government.\nA resumption of the Joint Commission meetings in May 1947, following an exchange of\nnotes between Secretary Marshall and Foreign Minister Molotov, resulted in a further\ndeadlock on the same issue, although these notes had established a formula which would\nhave permitted participation in consultation by the rightist groups in question. After the\nSoviet Government failed to reply to Secretary Marshall's note of August 12 requesting\nthe submission by the Commission of a joint status report or separate reports by each\nDelegation, the United States Delegation on August 20 transmitted a unilateral report to\nWashington. An American proposal then made to China, the United Kingdom and the\nSoviet Union for a Four-Power Conference to discuss Korea has been agreed to by China\nand the United Kingdom but has been rejected by the Soviet Union.\nInternally, the Korean problem has been complicated by the Soviet establishment of\na Communist regime in North Korea and by the machinations in South Korea of Commu-\nnist groups, openly hostile to the United States. The terrorist activities of extreme rightists,\nwho have strongly opposed trusteeship, have continually obstructed the efforts of United\nStates authorities. The latter, in accordance with their Directives, are endeavoring to\nturn over to Koreans as rapidly as possible full administrative responsibility in govern-\nmental departments. In consonance with this plan they have organized an interim Korean\nlegislative assembly and in general, are striving to carry out a policy of \"Koreanization\"\nof government in South Korea.\n/NATIONAL\nARCHIVES AND\nRLCORDS\nSERVICE'\nECONOMIC\n\"\nSouth Korea, basically an agricultural area, does not have the overall economic re-\nsources to sustain its economy without external assistance. The soil is depleted, and im-\nports of food as well as fertilizer are required. The latter has normally come from North\nKorea, as have most of the electric power, timber, anthracite and other basic products.\n12\nTOP SECRET"
}