GHQ in SCAPIN-677 dated January 29 of 1946 ordered that “The Imperial Japanese Government is directed to cease exercising, or attempting to exercise, governmental or administrative authority over any area outside of Japan (text omitted).” SCPAIN-677 also stipulated, “For the purpose of this directive, Japan is defined to include the four main islands of Japan (Hokkaido, Honshu, Kyushu and Shikoku) and the approximately 1,000 smaller adjacent islands, including the Tsushima Islands and the Ryukyu (Nansei) Islands north of 30° North Latitude (excluding Kuchinoshima Island); and excluding (a) Utsuryo (Ulleung) Island, Liancourt Rocks (Take Island) and Quelpart (Saishu or Cheju) Island (text omitted).” This resulted in a temporary suspension of Japan’s exercise of administrative rights over Takeshima (Ref.1)

At the same time, Article 6 of SCAPIN-677 stipulated, “Nothing in this directive shall be construed as an indication of Allied policy relating to the ultimate determination of the minor islands referred to in Article 8 of the Potsdam Declaration.” (Ref. 1)

Explanation: General Headquarters, the Supreme Commander for the Allied Powers (GHQ) corresponds to the administrational authority of the Allied occupation in Japan. The organization did not have authority in regards to the disposition of Japanese territory, whereas a peace treaty would dispose of territorial matters.

Ref. 1: General Headquarters, the Supreme Commander for the Allied Powers (GHQ): SCAPIN-677: GOVERNMENTAL AND ADMINISTRATIVE SEPARATION OF CERTAIN OUTLYING AREAS FROM JAPAN, January 29 of 1946 (Ministry of Foreign Affairs of Japan homepage)