794.5 MSP/8–1454: Telegram
No. 789
The Ambassador in Japan (Allison) to the Department of State
363. Initial meeting with Takeuchi and other government officials of similar rank on United States procurement in Japan August 12 revealed aggressive, antagonistic intensely critical attitude toward United States policy, method and “commitments” in connection with such procurement. The decline in United States [Page 1704] Government dollar procurement from the $100 million estimated in October to a total of about $70 million during United States fiscal year ended June 30 was viewed as a breach of confidence by the United States. Suggestion was made that the 14.4 billion yen counterpart of $40 million under Section 550 of MSA should not be expended for procurement until this point was clarified. Japanese also queried as to reason for drop in official garrison force procurement from $275 to $205 million and suggested that in view of this decline Japanese contribution of yen equivalent of $148 million to support United States forces should be proportionately reduced.
Speaking for United States, Waring stated $100 million figure was estimate only and that United States made no commitment that any specific portion would be paid in dollars. He deplored tendency of Japanese to regard as firm commitment estimates made in good faith which subsequently proved impossible and stated failure to reach $100 million target caused by later procurement cutbacks and inability place certain contracts in Japan. He states real United States contribution to troop support far in excess of $275 million and that Japanese position this issue, therefore, not understandable. He indicated willingness United States to discuss in more amicable atmosphere means of arriving at solution fair to both sides. Next meeting scheduled Wednesday August 18.1
Despatch follows.2