794.00/12–1154: Telegram

No. 837
The Ambassador in Japan (Allison) to the Department of State

secret

1381. Ikeda accompanied by Miyazawa called on me this morning at his request and said he had been entrusted by Mr. Yoshida with a message.1 Mr. Yoshida wanted me to know, and to pass on to Department, that he had made every possible effort upon his return to ensure a peaceful transition to Ogata which would make it possible to carry out commitments he had made abroad. Yoshida had agreed to resign and pass on premiership to Ogata and there had been agreement among liberal party leaders that if this could not be accomplished Diet would be dissolved. At last minute Ogata had changed his mind and in view of his refusal to acquiesce in dissolution Yoshida had no choice but to have cabinet resign en bloc. This had result Yoshida feared of placing Hatoyama in power. It was obvious that Ogata’s action had created deep breach between him and YoshidaIkeda faction of liberal party and that there is considerable bitterness. This became quite clear when in response to question Ikeda said that while he had been willing to remain as Secretary General of liberal party if there had been peaceful transmission [transition] of leadership to Ogata that under present circumstances he could only “follow his old leader” and remain out of active office in liberal party. Without explicitly saying so Ikeda definitely implied that Ogata’s action was considered treacherous [Page 1805] by Yoshida. Whether or not Yoshida will run for re-election if Diet is dissolved in January still uncertain according to Ikeda. Yoshida had intended to resign shortly after designation of new Prime Minister but now it is not certain he will do so although Ikeda said it was most important that no public indication be given that Yoshida is considering running again.

Ikeda stated Diet would definitely be dissolved in January and that as result of forthcoming elections Socialists would gain approximately thirty seats. He envisions new Diet being composed of about 160 Socialists of both wings and approximately equal division between liberals and democrats of remaining 300 seats, with perhaps a few scattered Communist seats. It is Ikeda’s hope that present bitterness among various conservative factions will die down with time and the nearly equal division of conservative strength after the election will make possible some sort of merger or coalition between liberals and democrats. Ikeda’s opinion Hatoyama Government will not make great changes in present Japanese policy and in view of Ichimada’s selection as Finance Minister this is particularly true in economic field. He also anticipated that while new government will, for political purposes, talk a great deal about regularizing relations with USSR and Communist China and increasing trade with Communist bloc that in fact little will be done.2 New government cannot be expected to proceed with settlement of GARIOA problem which would probably be unpopular and lose votes but Ikeda believes it will attempt to solve Bikini compensation issue which could gain votes at next election.

In parting Ikeda expressed belief that unification of conservative forces was vital for good of Japan but said only time could heal present wounds and make this possible.

Allison
  1. The Yoshida cabinet resigned on Dec. 9, and a government headed by Hatoyama took office the following day.
  2. In telegram 1443 from Tokyo, Dec. 17, Allison in part reported:

    “While Kishi and others have sought privately to assure me that recent statements on Communist bloc relations designed for domestic consumption and not intended imply any change from policy close cooperation with US, I expressed my concern last night to Finance Minister Ichimada that Government by its recent statements may, without intending to do so, build up strong domestic pressures for recognition Red China, equalization level of controls on trade with Europe–Soviet bloc and China, new trading and travel arrangement et cetera. Ichimada said he recognized this danger and would bring matter up at next cabinet meeting.” (794.00/12–1754)