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August 9, 1950 RECOMMENDATIONS I recommend the following: 1. An immediate investigation. 2. Appointment of a high class civilian administrator, inde- pendent of the Army, to administer the non-military problems of the occupation. This takes in all of the Economic Scientific Section, including banking, foreign investments and all other matters that are non-military in connection with the Japanese, as well as civil affairs also takes teams. The man appointed to this job should be a top ranking business in Government man, willing to go to Japan and to sympathize and understand the sections. Japanese and to patiently permit them to present their problems, and secure help in conducting their business in their own way. 3. Immediately lift the purge in an intelligent manner. It is my opinion that the purge should be lifted on practically all purgees. 4. Establishment of court of redress for the Japanese versus occupation personnel. 5. Abolition of abuses against Japanese by CID and other Mili- tary Police. 6. Rehabilitation of Japanese business. 7. Return to Japanese of the homes now occupied by SCAP employees. 8. The removal of Mr. Frayne Baker and his secretary, Mr. Gregory, of the Foreign Investment Board. Mr. Baker and Mr. Gregory control all foreign investments or foreign dealings between the Japanese and foreign investors, and their methods and manner of doing business is such that it makes it virtually impossible for the Japanese to do busi- ness. An independent investigation would disclose many interesting things concerning this office. The removal of Alva C. Carpenter and his assistants from the Legal Section for the reason that from my dealings with members of the Japanese Government I have time and time again been confronted with the absolute terror with which they regard these gentlemen. It is so bad that they will not do anything legally without first getting a clearance from that Section. I have been told that if they did such an act they would be fired instantly. An investigation will show many other evils from this Section. the 5 community

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    "ocrText": "August 9, 1950\nRECOMMENDATIONS\nI recommend the following:\n1. An immediate investigation.\n2. Appointment of a high class civilian administrator, inde-\npendent of the Army, to administer the non-military problems of the\noccupation. This takes in all of the Economic Scientific Section,\nincluding banking, foreign investments and all other matters that are\nnon-military in connection with the Japanese, as well as civil affairs\nalso takes\nteams. The man appointed to this job should be a top ranking business\nin Government\nman, willing to go to Japan and to sympathize and understand the\nsections.\nJapanese and to patiently permit them to present their problems, and\nsecure help in conducting their business in their own way.\n3. Immediately lift the purge in an intelligent manner. It is\nmy opinion that the purge should be lifted on practically all purgees.\n4. Establishment of court of redress for the Japanese versus\noccupation personnel.\n5. Abolition of abuses against Japanese by CID and other Mili-\ntary Police.\n6. Rehabilitation of Japanese business.\n7. Return to Japanese of the homes now occupied by SCAP employees.\n8. The removal of Mr. Frayne Baker and his secretary, Mr. Gregory,\nof the Foreign Investment Board. Mr. Baker and Mr. Gregory control\nall foreign investments or foreign dealings between the Japanese and\nforeign investors, and their methods and manner of doing business is\nsuch that it makes it virtually impossible for the Japanese to do busi-\nness. An independent investigation would disclose many interesting\nthings concerning this office.\nThe removal of Alva C. Carpenter and his assistants from the Legal\nSection for the reason that from my dealings with members of the Japanese\nGovernment I have time and time again been confronted with the absolute\nterror with which they regard these gentlemen. It is so bad that they\nwill not do anything legally without first getting a clearance from that\nSection. I have been told that if they did such an act they would be\nfired instantly. An investigation will show many other evils from this\nSection.\nthe\n5\ncommunity"
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