Office of the Historian

111. Telegram From the Commander in Chief, Far East (Ridgway), to the Department of the Army1

Tokyo, January 21, 1957—4:55 p.m.

FE 803784. Reference: A. FE 803364, 080325Z Dec 56. B. FE 803738, 161255Z Jan 57. C. FE 803740, 170500Z Jan 57. D. FE 803764, 181030Z Jan 57.2 E. State Dept msg, Tokyo 1537,19 Jan 57.3

Subject: Annual Japanese defense review for JFY 57.

1.
Third and final meeting, US-Japanese defense review, held 20 Jan at vice-ministerial level.
2.
Japanese representatives were informed of US concurrence in application of the formula agreed upon in exchange of notes 25 Apr 56 in arriving at the amount of yen contribution Japan is to make in support of US forces in Japan for JFY 57, pursuant to Article XXV 2(B) of the Administrative Agreement. Based on a final cash appropriations figure of 111.5 billion yen, (101 billion yen for JDA and 10.5 billion yen for US facilities) as compared with 110.7 billion yen appropriated for JFY 56, the amount of this contribution will be 29.6 billion yen for JFY 57. These figures are subject to final Japanese Government action.
3.
The following points were reemphasized:
a.
The US Government view that it is completely within the province of the Japanese Government to determine the size of its own defense budget.
b.
That we have in no way encroached upon that responsibility or prerogative.
c.
That we have a deep interest in the defense build-up of Japan, which stems from a real identity of national interests.
d.
US disappointment with the revised defense proposals, which indicate a slowdown in Japanese defense efforts, and further weaken the six-year plan, which is at best minimal and austere.
e.
US belief that Japan, while reaffirming its commitment for continued defense buildup and support of the six-year plan, has given predominant consideration to other than military factors in developing the defense budget for JFY 57.
4.
Deficiencies noted in the Japanese defense budget, as brought out by discussions at technical levels, and in studies of figures and explanations received, were reviewed. An analysis of these deficiencies will be furnished when the detailed budget is provided JDA and after further conferences between the JDA and MAAG–Japan.
5.
In response, Japanese representatives reiterated necessity for improvement political atmosphere and public support as a basis for more acceptable defense efforts in the future, stating that this can best be accomplished by eliminating the carry-over and holding the cash appropriation to amounts which can actually be spent by the defense agency within the fiscal year. Attempted to show that funds are being made available in sufficient amount to support the policy of continued build-up and basic requirements of the six-year plan.
6.
US side indicated requirement for careful planning to assure coordination in matching Japanese defense effort with military aid being made available by US.
7.
Press release agreed upon. Press comment following the meeting appears, so far, to be generally factual.
  1. Source: Department of State, Central Files, 794.5–MSP/1–2157. Confidential; Priority. Repeated to the Department of State, CINCPAC, the Embassy in Tokyo, and the MAAG in Japan. The source text is the Department of State copy.↩
  2. References A through D not found.↩
  3. See footnote 3, supra.↩