Foreign Relations of the United States, 1955–1957, Foreign Aid and Economic Defense Policy, Volume X

157. Telegram From the Embassy in Japan to the Department of State¹

Tokyo, April 20, 1957—4 p.m.

2380. In our meeting April 20 Kishi read from talking paper entitled “China Trade and Problems Concerning Communist China,” covering relaxation of China trade controls, establishment of trade agency in Communist China, relations between Nationalist China and Communist China and observations on Russian-Chinese relationship. In preliminary remarks before reading from paper, Kishi stressed that government and conservatives had decided on firm policy regarding Communist China including a) advancement of trade to maximum possible extent and b) Japan had no intention of recognizing or opening diplomatic relations with Peking regime in foreseeable future. He stressed that comments contained in paper should be considered in light of these fundamental principles. He pointed out that while Socialists were demanding recognition of Peking, Conservatives flatly rejected this point of view.²….

. . . . . . .

[Here follow sections II–IV of the Japanese paper, entitled “Establishment of Trade Agency in Communist China”; “Nationalist China and Communist China”; and “Observations on the Russo-Japanese Relationship.”]

MacArthur

1. Source: Department of State, Central Files, 493.9441/4–2057. Secret; Limit Distribution.
2. In telegram 2381 from Tokyo, April 20, MacArthur reported on a conversation that he had with Kishi immediately after presentation of his talking paper. “I said US was most sympathetic to Japan’s trade problems,” the telegram reads in part. “In fact, only yesterday copies of proposals we would introduce in CHINCOM were given Japanese Embassy by Dept which were designed to effect some liberalization of China trade controls. I expressed hope of my Govt that Kishi and his Govt would favor these proposals and support them in China Committee even though they did not provide for total abolition China differential which PM sought.” During their talk, Kishi was handed a note, and, after reading it, told MacArthur that “he had just been informed Japanese Embassy did receive US proposal for possible relaxation China trade control but noted with regret that China differential persisted. He asked for further, and he hoped favorable, consideration of Japanese position expressed in paper he had just given me. He added that it might be possible for Japanese Govt officials to understand US rationale but Japanese public did not, and therein lies the gap between the two countries.” (Ibid.)