Transfer of Japanese overseas assets In accordance with Article 14 of the Treaty, Allied forces confiscated all assets owned by the Japanese government, firms, organization and private citizens, in all colonized or occupied countries except China, which was dealt with under Article 21. China repossessed all Japanese assets in
Manchuria and
Inner Mongolia, which included mineworks and railway infrastructure. Moreover, Article 4 of the treaty stated that "the disposition of property of Japan and of its nationals...and their claims...against the authorities presently administering such areas and the residents...shall be the subject of special arrangements between Japan and such authorities." Although Korea was not a signatory state of the treaty, it was also entitled to the benefits of Article 4 by the provisions of Article 21. Total amount of Japanese overseas assets in China was US$18,758,600,000 in 1945.
Compensation to Allied POWs Article 16 of the San Francisco Treaty states:As an expression of its desire to indemnify those members of the armed forces of the Allied Powers who suffered undue hardships while prisoners of war of Japan, Japan will transfer its assets and those of its nationals in countries which were neutral during the war, or which were at war with any of the Allied Powers, or, at its option, the equivalent of such assets, to the
International Committee of the Red Cross which shall liquidate such assets and distribute the resultant fund to appropriate national agencies, for the benefit of former prisoners of war and their families on such basis as it may determine to be equitable. The categories of assets described in Article 14(a)2(II)(ii) through (v) of the present Treaty shall be excepted from transfer, as well as assets of Japanese natural persons not residents of Japan on the first coming into force of the Treaty. It is equally understood that the transfer provision of this Article has no application to the 19,770 shares in the
Bank for International Settlements presently owned by Japanese financial institutions. Accordingly, Japan paid
£4,500,000 to the Red Cross. Article 16 has served as a bar against subsequent lawsuits filed by former Allied prisoners of war against Japan. In 1998, a Tokyo court ruled against a suit brought by former Allied POWs, citing the San Francisco Treaty.
Allied territories occupied by Japan Article 14 of the treaty stated thatIt is recognized that Japan should pay reparations to the Allied Powers for the damage and suffering caused by it during the war. Nevertheless it is also recognized that the resources of Japan are not presently sufficient, if it is to maintain a viable economy, to make complete reparation for all such damage and suffering and at the same time meet its other obligations. Therefore,Japan will promptly enter into negotiations with Allied Powers so desiring, whose present territories were occupied by Japanese forces and damaged by Japan, with a view to assisting to compensate those countries for the cost of repairing the damage done, by making available the services of the Japanese people in production, salvaging and other work for the Allied Powers in question. Accordingly, the Philippines and South Vietnam received compensation in 1956 and 1959, respectively. Burma and Indonesia were not original signatories, but they later signed bilateral treaties in accordance with Article 14 of the San Francisco Treaty.
Japanese military yen issued by force in Hong Kong, Papua New Guinea, the Philippines, Taiwan, and other places for the economic advantage of Japan were not honored by them after the war. This caused much suffering, but the claims of the
Hong Kong Reparation Association in 1993, in a Tokyo district court, failed in 1999. The court acknowledged the suffering of the Hong Kong people, but reasoned that the
Government of Japan did not have specific laws concerning military yen compensation and that the United Kingdom was a signatory to the Treaty of San Francisco. Regarding China, on September 29, 1972, the Government of the People's Republic of China declared "that in the interest of the friendship between the Chinese and the Japanese peoples, it renounces its demand for war reparation from Japan" in article 5 of the ''Joint Communique of the Government of Japan and the Government of the People's Republic of China''. The last payment was made to the Philippines on July 22, 1976. ==Unresolved issues==