MacArthur biographer William Manchester has described MacArthur's reaction to the issuance by the Allies of the Potsdam Proclamation to Japan: "...the Potsdam declaration in July, demand[ed] that Japan surrender unconditionally or face 'prompt and utter destruction.' MacArthur was appalled. He knew that the Japanese would never renounce their emperor, and that without him an orderly transition to peace would be impossible anyhow, because his people would never submit to Allied occupation unless he ordered it. Ironically, when the surrender did come, it was conditional, and the condition was a continuation of the imperial reign. Had the General's advice been followed, the resort to atomic weapons at Hiroshima and Nagasaki might have been unnecessary."
William Manchester, American Caesar: Douglas MacArthur 1880-1964, pg. 512.
Norman Cousins was a consultant to General MacArthur during the American occupation of Japan. Cousins writes of his conversations with MacArthur, "MacArthur's views about the decision to drop the atomic bomb on Hiroshima and Nagasaki were starkly different from what the general public supposed." He continues, "When I asked General MacArthur about the decision to drop the bomb, I was surprised to learn he had not even been consulted. What, I asked, would his advice have been? He replied that he saw no military justification for the dropping of the bomb. The war might have ended weeks earlier, he said, if the United States had agreed, as it later did anyway, to the retention of the institution of the emperor."
Norman Cousins, The Pathology of Power, pg. 65, 70-71.
Based on a series of intelligence reports received in late 1944, Zacharias, long a student of Japan's people and culture, believed the Japan would soon be ripe for surrender if the proper approach were taken. For him, that approach was not as simple as bludgeoning Japanese cities:
"...while Allied leaders were immediately inclined to support all innovations however bold and novel in the strictly military sphere, they frowned upon similar innovations in the sphere of diplomatic and psychological warfare."
Ellis Zacharias, The A-Bomb Was Not Needed, United Nations World, Aug. 1949, pg. 29.
Zacharias saw that there were diplomatic and religious (the status of the Emperor) elements that blocked the doves in Japan's government from making their move:
"What prevented them from suing for peace or from bringing their plot into the open was their uncertainty on two scores. First, they wanted to know the meaning of unconditional surrender and the fate we planned for Japan after defeat. Second, they tried to obtain from us assurances that the Emperor could remain on the throne after surrender."
Ellis Zacharias, Eighteen Words That Bagged Japan, Saturday Evening Post, 11/17/45, pg. 17.
To resolve these issues, Zacharias developed several plans for secret negotiations with Japanese representatives; all were rejected by the U.S. government. Instead, a series of psychological warfare radio broadcasts by Zacharias was later approved. In the July 21, 1945 broadcast, Zacharias made an offer to Japan that stirred controversy in the U.S.: a surrender based on the Atlantic Charter. On July 25th, the U.S. intercepted a secret transmission from Japan's Foreign Minister (Togo) to their Ambassador to Moscow (Sato), who was trying to set up a meeting with the Soviets to negotiate an end to the war. The message referred to the Zacharias broadcast and stated:
"...special attention should be paid to the fact that at this time the United States referred to the Atlantic Charter. As for Japan, it is impossible to accept unconditional surrender under any circumstances, but we should like to communicate to the other party through appropriate channels that we have no objection to a peace based on the Atlantic Charter."
U.S. Dept. of State, Foreign Relations of the United States: Conference of Berlin (Potsdam) 1945, vol. 2, pg. 1260-1261.
But on July 26th, the U.S., Great Britain, and China publicly issued the Potsdam Proclamation demanding "unconditional surrender" from Japan. Zacharias later commented on the favorable Japanese response to his broadcast:
"But though we gained a victory, it was soon to be canceled out by the Potsdam Declaration and the way it was handled.
"Instead of being a diplomatic instrument, transmitted through regular diplomatic channels and giving the Japanese a chance to answer, it was put on the radio as a propaganda instrument pure and simple. The whole maneuver, in fact, completely disregarded all essential psychological factors dealing with Japan."
Zacharias continued, "The Potsdam Declaration, in short, wrecked everything we had been working for to prevent further bloodshed...
"Just when the Japanese were ready to capitulate, we went ahead and introduced to the world the most devastating weapon it had ever seen and, in effect, gave the go-ahead to Russia to swarm over Eastern Asia.
"Washington decided that Japan had been given its chance and now it was time to use the A-bomb.
"I submit that it was the wrong decision. It was wrong on strategic grounds. And it was wrong on humanitarian grounds."
Ellis Zacharias, How We Bungled the Japanese Surrender, Look, 6/6/50, pg. 19-21