While the occupation period is, on the surface, a time in which Japan lost its diplomatic rights after accepting the terms of the 1945 Potsdam Declaration and Instrument of Surrender, it was also a time in which highly skilled diplomacy took place between Japan and GHQ, an international organization of sorts that was based in the country, on a daily basis. The negotiations between Japan and the occupation forces over continuance of the emperor system and constitutional revision would have a fundamental and long-term impact on Japan. Moreover, although Japan was defeated, its handling of the negotiations for the peace treaty and the U.S.–Japan security treaty was quite impressive.