Foreign Relations of the United States, 1955–1957, Japan, Volume XXIII, Part 1

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

Tokyo, May 27, 1957—7 p.m.

2769. Deptel 1537.² Informal agreement reached with Foreign Office on draft proposed notes and proposed confidential letters re Japanese contribution used for JFY 1957 per Article XXV 2(b) Administrative Agreement.

Text note is in Embtel 2768.³ It is somewhat simplified version that used previous years with exception that fact that this year’s reduction is reduction from full amount $155 million specified in Administrative Agreement is not clearly spelled out. Japanese have strongly urged deletion of reference to overall reduction $72 million. Embassy conceding point in note in order consummate negotiations but fully reserving position in accompanying letter of understanding shown below.

In past years there have been extensive legalistic arguments on question whether in absence of agreement Japanese contribution would revert to $155 million or to amount of contribution in immediately preceding year. In Embassy’s opinion this is question which should be argued out when issue arises, not before, provided our legal position to effect that, in such contingency, amount would be $155 million, is fully protected. Embassy believes language of agreement sufficiently protects our position but, because issue was raised by Japanese late in process draft note discussions, we propose send confidential letter with following operative paragraphs:

“As you will recall, previous drafts incorporated language similar to that used in exchanges of notes for each of previous years, reflecting agreement by our two governments in specific amount of reduction from contribution of $155,000,000 specified in Article XXV 2(b) of Administrative Agreement.

Although we are deferring to your desire to omit specific reference to amount reduction agreed upon for JFY 1957, this omission does not prejudice US position that contribution of $8[2],222,222.22 agreed upon for JFY 1957 is a reduction of $72,777,777.78 from contribution of $155,000,000 set forth in Administrative Agreement, calculated in accordance provisions of exchange of notes April 25, 1956.”

Operative paragraph of Japanese draft response proposed by Chiba acknowledging letter is following:

“On behalf my government, I would like to reserve position which it may take in any future consultation on question of specifying amount of annual reduction in Japanese contribution. I also understand that exchange of notes on Japanese contribution for JFY 1957 is not necessarily to be considered pattern for exchanges of notes for Japanese contribution in future fiscal years.”

Authorization requested proceed on basis exchange of both official unclassified notes and confidential letters.⁴

MacArthur

1. Source: Department of State, Central Files, 794.5/5–2757. Confidential; Priority.
2. See footnote 3, Document 110.
3. Not printed. (Department of State, Central Files, 794.5/5–2757) The text of the note is substantively identical to that of the published Japanese note in the exchange of notes cited in footnote 4 below.

4. The Embassy received final authorization to proceed along the lines outlined here in telegram 304 to Tokyo, August 7. (Ibid., 794.5/8–257)

   For text of the Agreement on annual and progressive reduction of Japanese expenditures under Article XXV 2 (b) of the Administrative Agreement, effected by an exchange of notes signed at Tokyo on August 16, 1957, see TIAS 3886; 8 UST (pt. 2) 1377.

   Texts of the confidential letters exchanged at Tokyo, also on August 16, are enclosures 6 and 7 to despatch 204 from Tokyo, August 20. (Department of State, Central Files, 794.5/8–2057)