Re-appointment as Under Secretary of State (1944–1945)
Grew returned to Washington in 1942 and served as a special assistant to Secretary Hull. In 1944, he was promoted to director of the Division of Far Eastern Affairs. On December 20, 1944, Grew was once again appointed as Under Secretary of State. He served as the Acting Secretary of State for most of the period from January to August 1945, while Secretaries of State Edward Stettinius and James F. Byrnes were away at conferences.
Grew distrusted the Soviet Union and advocated an anti-communist stance in the final days of the war. In April 1945, he and Chip Bohlen organized a meeting for State Department leadership, where Averell Harriman informed his colleagues that America and the USSR had a "basic and irreconcilable difference of objective" and that appeasement was not feasible. According to Harry Truman, Grew wanted the U.S. Army to continue pushing into Central Europe towards the end of the war, and hoped to rescue Czechoslovakia from the postwar Soviet orbit.
However, Dean Acheson complained that Grew and Leo Crowley had prematurely undermined America's allies by urging President Truman to terminate Lend-Lease, one of Acheson's favored projects, at the end of the war. After his retirement, Truman admitted that he had signed the order cutting back Lend-Lease without reading it. He said that Grew and Crowley had told him Roosevelt had approved the order before his death, and that in retrospect, he would have liked to taper off Lend-Lease more gradually. Crowley defended his decision, while Grew declined to comment.
One exception to Grew's anti-Soviet policy was his decision to repatriate Soviet nationals who had been captured by the Nazis as prisoners-of-war (POWs), and had entered American custody. During the war, the Nazis had put these individuals to work (voluntarily or involuntarily), mostly as rear area personnel (ammunition bearers, cooks, drivers, sanitation orderlies, or guards). The Soviet POWs asked the United States not to send them back to the USSR. They expected that Stalin would shoot them as traitors for allowing themselves to be captured alive; under Soviet law, surrender incurred the death penalty. Whey they learned that the United States was sending them home, they rioted, and some committed suicide. Truman granted the men a temporary reprieve, but Grew, as Acting Secretary of State, signed an order on July 11, 1945 sending them back. Soviet co-operation, it was believed, would prove necessary to remake the face of postwar Europe. On August 31, 1945, the 153 survivors were officially returned to the Soviet Union; their ultimate fate is unknown.
In 1944, before the war ended, Grew published his Japan diaries in edited form as Ten Years in Japan. In the book, he encouraged Americans to negotiate a generous peace with Japan, explaining that "there are many Japanese today who did not want war ... and who did everything in their power to restrain the military extremists from their headlong and suicidal aggressions."
Henry Stimson and Kenneth Colegrove credited Grew with convincing the American leadership to retain the Emperor of Japan. Upon returning to America, Grew went on a speaking tour to urge Americans to support retaining the Japanese monarchy. Grew believed that the Emperor would be "a potent means of restoring order and re-establishing parliamentary government," while the anti-Emperor faction, represented by Dean Acheson, argued that the "anachronistic [and] feudal" elements that made the Emperor potentially useful to the American occupation also made him "perfectly adapted to the use of anachronistic, feudal-minded groups within the country." Stimson remarked that at the time, men like Grew "were roundly abused as appeasers."
In May 1945, Grew asked President Truman to publicly announce that the Emperor would be allowed to remain as head of state if the Japanese surrendered. Truman said that Grew pushed to issue the declaration as soon as America concluded the Battle of Okinawa. By contrast, the Pentagon was unsure whether the Japanese would actually take the deal, and wanted to wait until the eve of invasion before offering to retain the emperor. Stimson, the Secretary of War, worried that the Japanese would see a concession on the Emperor as an admission of weakness. Truman considered making the offer in the Potsdam Declaration, but ultimately left it out. After the atomic bombings of Hiroshima and Nagasaki, Grew speculated that if Truman had taken his advice, there would have been no need for the atomic bombings and no need for the Soviet entry into the Pacific War.
Grew, Stimson, and John J. McCloy influenced the policy document U.S. Initial Post-Surrender Policy for Japan, which President Truman approved on September 6, 1945. Grew successfully opposed trying the imperial family for war crimes, thereby preparing the way for a speedy Japanese surrender and the friendly postwar relations during which Japan was closely supervised by American officials. Acheson eventually admitted that Grew had been right and he had been wrong.
Shortly before his departure, Grew wrote President Truman three memos urging him to not throw his full support behind the State of Israel. In May 1945, he explained that while "President Roosevelt at times gave expression to views sympathetic to certain Zionist aims, he also gave certain assurances to the Arabs which they regard as definite commitments on our part," including a promise to not support any changes to the status quo "without full consultation with both Arabs and Jews." He specifically noted that Roosevelt had promised Ibn Saud that he "would not assist the Jews as against the Arabs," and warned that a State of Israel "could be established and maintained only by military force."
Grew urged Truman to hold off on a decision, explaining that "definite arrangements regarding specific territories are to be considered later" and that any resolution of the Mandatory Palestine issue should be handled "through the United Nations." Truman responded that many Holocaust survivors could not be reasonably asked to return to Europe and that "the misery [of the Jewish refugee camps] ... could not be allowed to continue."
Grew retired on August 15, 1945, Victory over Japan Day, and was succeeded by Dean Acheson. The swap was considered surprising at the time, as Acheson had abruptly announced his retirement the previous week. The reasons for Grew's departure were unclear. It was said that he left because Harry Truman wanted to remake Japan in a more democratic and liberal fashion, and worried that Grew would let the old leadership return to power. Alternatively, it was suggested that Grew was Edward Stettinius Jr.'s man, while Acheson was James F. Byrnes' man.
Most salaciously, Joseph McCarthy and Felix Wittmer claimed that Grew had been fired because he wanted to prosecute John Service, who was accused of being a communist spy. McCarthy added that Acheson had promptly promoted Service to high posts. The Senate Foreign Relations Committee began investigating McCarthy's claims. In a 1950 interview with a committee lawyer, Grew explained that he had authorized Julius C. Holmes to arrest certain individuals associated with the Amerasia publication for potential theft of military secrets. One of these individuals ended up being Service. Grew said that he did not know that Service was a target of the investigation. Rather, before authorizing the arrests, he asked Holmes to confirm that he believed the suspects were "almost certainly" guilty; he did not ask Holmes to give him their names. Grew expressed shock that Service had been caught up in the affair and said that the man should be "reinstated to duty without any blemish on his fine record." Grew had previously congratulated Service on his "complete vindication" after Service had been cleared by a grand jury.
Amplifying the confusion, Grew had in fact butted heads with several of McCarthy's opponents. Acheson complained that Grew had attempted to freeze him out of the most desirable posts when Stettinius took over the State Department. In addition, John Carter Vincent admitted that Grew had overruled his recommendation to hire suspected Communist Owen Lattimore as a Far East consultant; Lattimore had been one of the primary opponents to Grew's Hirohito policy.
Grew eventually became a public critic of McCarthy. He clashed with McCarthy over the appointment of Chip Bohlen to the Soviet ambassadorship. In January 1954, Grew, Norman Armour, Robert Woods Bliss, William Phillips, and Howland Shaw published an open letter defending the Foreign Service from McCarthy's attacks. In response, McCarthy ally Scott McLeod accused the letter-writers of a "scandalous libel."