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October 19, 1945
adequate native management. Colonel Kramer advocated
arrangements with the Korean and Chinese Governments under
which American private interests capable of providing
management for such plants would be encouraged to acquire
them or operate them on a "99-year lease basis". He felt
that as a measure to safeguard the broader interests of the
United States in the Far East, "fifty leading industrial
concerns" in America should and could be persuaded to take
over the properties in question, even if the anticipated
rate of profit were low.
III. Political and Militery Factors
General MacArthur gave considerable emphasis to the
influence of Russia on Japanese affairs, expressing concern
over "underground Communist agitation" in Japan. Many of
the so-called liberal elements of Japan are Communistic, he
stated, and in his opinion, Japanese Communism is dominated
from Moscow. He indicated that the Russian desire to share
in the Supreme Allied Command in part grows out of an inten-
tion to demoralize Japan so as to oreate the environment for
a successful Communi st revolution.
The General conveyed the impression that his economic
policies toward Japan take into consideration the factor of
Russian activity in the Far East. Russia, he commented, is
playing the geme of power politics "for all it is worth",
and the Far East is now the most important part of the world
for Amerioa.
He revealed particular concern over the situation along
"the 38th paralle1", the border between the Russian-eccupied
part of Korea and the American-occupied section. American
Navy pilots from aircraft carriers, he said, on several
occasions flew over the Russian side of the Koroan line by
accident or through sheer youthful exuberance and were warned
off by the Russians. The Russian Commander then notified
General Hodge that if such incidents occurred again, he would
shoot down the American planes. General Hodge referred the
matter to General Macarthur who replied in effect that every
effort would be made to prevent a recurrence of such inci-
dents, which were certainly of minor importance, but that the
shooting down of an American plane would be considered a
hostile act, and the Russian commender would have to accept
the consequences. No incidents had been reported, the
General stated, in which Russians had penetrated over the
American side of the Korean line.
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"ocrText": "Page 4\nOctober 19, 1945\nadequate native management. Colonel Kramer advocated\narrangements with the Korean and Chinese Governments under\nwhich American private interests capable of providing\nmanagement for such plants would be encouraged to acquire\nthem or operate them on a \"99-year lease basis\". He felt\nthat as a measure to safeguard the broader interests of the\nUnited States in the Far East, \"fifty leading industrial\nconcerns\" in America should and could be persuaded to take\nover the properties in question, even if the anticipated\nrate of profit were low.\nIII. Political and Militery Factors\nGeneral MacArthur gave considerable emphasis to the\ninfluence of Russia on Japanese affairs, expressing concern\nover \"underground Communist agitation\" in Japan. Many of\nthe so-called liberal elements of Japan are Communistic, he\nstated, and in his opinion, Japanese Communism is dominated\nfrom Moscow. He indicated that the Russian desire to share\nin the Supreme Allied Command in part grows out of an inten-\ntion to demoralize Japan so as to oreate the environment for\na successful Communi st revolution.\nThe General conveyed the impression that his economic\npolicies toward Japan take into consideration the factor of\nRussian activity in the Far East. Russia, he commented, is\nplaying the geme of power politics \"for all it is worth\",\nand the Far East is now the most important part of the world\nfor Amerioa.\nHe revealed particular concern over the situation along\n\"the 38th paralle1\", the border between the Russian-eccupied\npart of Korea and the American-occupied section. American\nNavy pilots from aircraft carriers, he said, on several\noccasions flew over the Russian side of the Koroan line by\naccident or through sheer youthful exuberance and were warned\noff by the Russians. The Russian Commander then notified\nGeneral Hodge that if such incidents occurred again, he would\nshoot down the American planes. General Hodge referred the\nmatter to General Macarthur who replied in effect that every\neffort would be made to prevent a recurrence of such inci-\ndents, which were certainly of minor importance, but that the\nshooting down of an American plane would be considered a\nhostile act, and the Russian commender would have to accept\nthe consequences. No incidents had been reported, the\nGeneral stated, in which Russians had penetrated over the\nAmerican side of the Korean line."
}