Foreign Relations of the United States, 1961–1963, Volume XXII, Northeast Asia

329. Memorandum From Secretary of State Rusk to President Kennedy ⁰

Washington, June 9, 1961.

SUBJECT

• U.S.-Japan Committee on Trade and Economic Affairs

We have had under consideration, in connection with the forthcoming visit of Prime Minister Ikeda, the advisability of establishing a Joint United States-Japan Committee on Trade and Economic Affairs. This would follow the pattern of the Joint United States-Canadian Committee established in 1953.

Prime Minister Ikeda’s visit provides an opportunity to set the pattern for our relations with Japan during your Administration. It will permit us to dispel lingering Japanese doubts about the importance we attach to Japan as compared with our major allies in Europe, as well as Japanese doubts about the relative weight we give to our economic relationship as opposed to our military security relationship. I believe the establishment of a joint committee on the United States-Canadian pattern will do a great deal to accomplish these objectives by giving public recognition to the importance we attach to close and mutually beneficial trade and economic relations. It would also be a logical development in view of Article II of the Treaty of Mutual Cooperation and Security between the United States and Japan in which the two Governments agree that “They will seek to eliminate conflict in their international economic policies and will encourage economic collaboration between them.” We believe the Committee would also serve the following specific purposes:

1. It would provide a medium, now lacking, for periodic high level economic discussions with our second largest trading partner.

2. It would counteract the Japanese impression that their economic interests are overshadowed in U.S. policy determination as a result of our close ties with our Western European allies and the forums provided by these close ties in NATO and OECD for regular high level discussions within the Atlantic Community.

3. It would provide an interim organ for the discussion of economic and trade problems of mutual interest as long as Japan is not a full member of OECD.

4. It would permit an annual high level review of economic development questions, particularly such joint programs as may be developed for Korea and other areas.

The proposal has been discussed with Ambassador Reischauer, who considers it a most constructive step. It has also been discussed with other interested Departments (Treasury, Interior, Agriculture, Commerce, and Labor). They have approved the establishment of the Committee, subject to your approval. The Secretaries of the Interior and Labor¹ are not regular members of the United States-Canadian Committee, but have expressed a strong desire to participate in the United States-Japan Committee. I accordingly recommend that you authorize me to conclude an agreement with the Government of Japan along the lines of the enclosed draft notes.

We would hope to conclude an agreement establishing this Committee on the occasion of Prime Minister Ikeda’s visit, June 20-23, 1961. I would propose to exchange notes without public ceremony along the lines of the enclosed drafts with the Japanese Foreign Minister during the visit. The establishment of the Committee would be announced in your joint communique with Prime Minister Ikeda and the notes published with the communique.²

Dean Rusk

0. Source: Kennedy Library, National Security Files, Countries Series, Japan, 6/61. No classification marking.
1. Stewart Udall and Arthur Goldberg.
2. A marginal note reads: “OK by JFK 12 June 1961 McG B.”