January 26, 1949
MEMORANDUM
Subject: Japan
The discussion at luncheon on Japan in Secretary Royall's office was very general in nature. General Draper ran over the specific problems which largely had to do with economic recovery in Japan, stabilization of the currency and the fundamental problem of exports and imports.
Secretary Forrestal and I indicated that the first and primary problem was a clarification of Mr. Dodge's relationship with General MacArthur. If this could be a direct relationship we thought his work held much promise. If it had to be strained through the staff, and particularly through the economic committee recently established, we thought that it would be very difficult indeed.
I told Secretary Royall that Mr. Bishop would accompany him as the representative of the Department of State. He asked that Mr. Bishop immediately get in touch with his office since he proposed to leave at one o'clock on Friday.
S:DA:ma