274. Telegram From the Embassy in Japan to the Department of State1
4251. Ref: Deptel 3365.2 From our conversations with responsible GOJ officials it is clear that they are concerned at complete failure of recent wool talks and are casting about for some more positive approach. In private discussion with Ambassador June 14 PriMin Sato made passing reference to wool talks, indicated he personally aware of problem, and realized some understanding might be necessary. We have been told informally that Yoshioka (Deputy Director, MITI Textile Bureau) plans dinner meeting with Japanese industry reps this week to explore possibilities for some shift in Japanese position. To best of our knowledge nothing specific has developed yet, however.
MITI planning series of major personnel changes in near future. Shinichi Arai, Director of Textile Bureau (and leader Japanese del at wool talks) will retire from MITI and become Secretary General of international exhibition. He will be replaced in Textile Bureau by Kenzo Ototake, now Deputy Director of Enterprise Bureau (who we understand has had previous experience in one of Textile Bureau sections). Shigenobu Yamamoto, Director of International Trade Bureau, will become head of medium and small enterprise agency. Yaegi Watanabe, Director of Trade Promotion Bureau, will move into Yamamoto’s position and in turn be replaced in Trade Promotion Bureau by Setsuo Takashima, now with Coordination Bureau of Economic Planning Agency. No direct connection between personnel changes and wool issue but officials will undoubtedly require some time to settle into their new jobs before coming to grips with wool textile policy.