270. Memorandum of Conversation1
SUBJECT
- Summary of the President’s Meeting with Prime Minister Ohira of Japan
PARTICIPANTS
- President Jimmy Carter
- Vice President Walter Mondale
- Acting Secretary, Warren Christopher
- Secretary of Defense, Harold Brown
- Secretary of Treasury, William Miller
- Secretary of Energy, Charles Duncan
- Assistant to the President for National Security Affairs, Zbigniew Brzezinski
- Special Trade Representative, Reubin Askew
- Ambassador Mike Mansfield, Ambassador to Japan
- Ambassador Henry Owen, Ambassador at Large
- Assistant Secretary of State for East Asian and Pacific Affairs, Richard Holbrooke
- NSC Staff Member, Donald Gregg (Notetaker)
- Deputy Assistant Secretary of State for East Asian and Pacific Affairs, Michael Armacost
- Deputy Assistant Secretary of Defense, Nicholas Platt
- Japan Desk Officer, Alan Romberg
- United States Interpreter, Cornelius Iida
- Prime Minister Masayoshi Ohira of Japan
- Foreign Minister, Saburo Okita
- Ambassador Yoshio Okawara, Ambassador to The United States
- Deputy Chief Cabinet Secretary, Koichi Kato
- Deputy Minister for Foreign Affairs, Yasue Katori
- Minister Kiyoshi Sumiya
- Director-General, North American Affairs Bureau, Shinichiro Asao
- Director-General, Economic Affairs Bureau, Reishi Teshima
- Director of the First North American Division, Hiroshi Fukuda
- Executive Assistant to the Prime Minister, Yoshiyasu Sato
- Counselor, Embassy of Japan, Koichiro Matsuura
- First Secretary, Yutaka Kawashima
- Chief of Second North American Bureau, Kazuo Ogura
- Japanese Interpreter, Sadaaki Numata
The President opened the meeting by extending greetings to Prime Minister Ohira as a great leader and a great friend. Prime Minister Ohira responded by saying that he was pleased to be meeting with the [Page 850] President in very trying times. Ohira said that he was gratified by the strong leadership exerted by President Carter, not only for Japan’s sake but for the entire world. He said he hoped to revitalize the underlying trust which exists between our two countries.
[Omitted here is discussion unrelated to energy.]
In a more serious vein, the President said that he recognized the special significance of actions taken by Japan in not buying high-priced Iranian oil.2 The President said that he knew that this action had been a difficult one for Japan, but that it had been highly important to have held the line on oil prices. The President added that if Iran continues to sell its oil to other countries, the total world supply ought to be sufficient for Japan to make up its short-fall. This is particularly true, the President noted, since both our countries have good oil reserves at the moment. The President said that countries like Mexico and Saudi Arabia have been asked to increase their production, to help ease the situation. The President went on to say, however, that he wanted Prime Minister Ohira to know that the US will help Japan acquire oil, if such a need arises. The President said that in an emergency situation, American oil could go to Japan. He added that he did not feel that this would be necessary, since Japan purchases oil so wisely. The President said that he felt that he could get US oil companies to help Japan voluntarily, and had the authority to order it on a mandatory basis, should the need arise. The President said that this assurance was being offered in the privacy of the meeting, but that it could be made public at a later time, should Japan wish. The President concluded by saying that should Japan decide to trigger the IEA plan, the US would support its position.
Ohira expressed his gratitude for the President’s offer. He said that Japan has to be careful in its oil purchases so as not to “disturb the world market.” It was for this reason that Japan refused to buy from Iran at such a high price. Ohira said that if there were to be a sustained world oil shortage, Japan would be in a difficult position. Ohira said that if Japan got into “dire straits” it might ask for US help. Ohira again thanked the President for his offer of oil, and for his stand on triggering the IEA plan. As of now, Ohira said, Japan would try to meet its oil needs through its own efforts.
The President said that since the Tokyo Summit, the US has made progress in reducing oil consumption. As of now, the US is using and importing 5% less oil than one year ago. He expressed the hope that more countries can follow suit in reducing oil use. The President urged Ohira to join forces with him in Venice to urge others to cut back on oil use, and to thereby stabilize the international oil market. The President [Page 851] said that America’s reduction of oil use was a source of pride, but that we can do more. He praised the fine example that Japan has set in terms of limiting its oil use.
Ohira said that at least year’s Summit in Tokyo, the President had taken the lead in setting oil ceilings. This had helped save the international economy. Ohira noted that statistics show the progress America has made in reducing oil use, but that all major countries need to do more. Ohira said that along with setting numerical ceilings, we need to develop policies that will sustain those numerical quotas. Such policies will need to be developed on conservation, development of alternative sources of energy, etc. Ohira joined the President in calling for more progress to be made at Venice.
The President asked what the Japanese experience has been with conservation over the past year. Ohira replied that Japan had been successful in reaching its goal of 5% reduced oil consumption. In JFY (Japanese Fiscal Year) 1979, oil use was 99.6% of the previous year, while the economy grew by 6%. The President noted that the Japanese economy is more efficient than ours. He noted that we use about 50% of our oil for transportation. This means, the President noted, that we have the potential to reduce oil use more. The President said that in the near future, Congress will finish passing legislation involving tens of billions of dollars that will be devoted to the development of alternative sources of energy, and improved public transportation. He noted that the recently passed windfall profits tax3 will help pay for this program, that will involve development of new technology, new plants and new equipment to convert shale and coal into usable energy.
Foreign Minister Okita noted that Japan’s oil consumption has held steady for the past six years, while its GNP has increased by 35%. The President expressed admiration for this record, and said that America had done well in terms of industrial energy use, but not in terms of use of energy in transportation.
[Omitted here is discussion unrelated to energy.]
- Source: Carter Library, National Security Affairs, Brzezinski Material, Subject File, Box 38, President’s Memoranda of Conversation. Secret. The meeting was held in the Cabinet Room of the White House. Prime Minister Ohira visited Washington April 30–May 1. Documentation on his visit, including the full text of this memorandum of conversation, is scheduled for publication in Foreign Relations, 1977–1980, volume XIV, Korea; Japan.↩
- See footnote 3, Document 267.↩
- President Carter signed the Crude Oil Windfall Profit Tax Act (P.L. 96-223) on April 2. For the text of his remarks on signing the bill, which he called “an historic step to the Nation’s energy security,” see Public Papers of the Presidents of the United States: Jimmy Carter, 1980, pp. 584–590.↩