29. Telegram From the Department of State to the Embassy in Japan 1
2074. Your 2572 and 2578.2 Joint State–Defense message. Concur importance reaching satisfactory understanding with Japanese Government about its defense budget within few days. In doing so must conform principle that all of whatever reduction is agreed in Japanese contribution U.S. Forces Japan devoted defense purposes.
Because of interrelationship offshore procurement spending and Japanese contract authorizations for example for proposed aircraft production program do not want set figure which would hamper your negotiating flexibility. Therefore you authorized accept for JFY 1955 figure satisfactory both you and General Taylor but not lower than 132.7 billion yen for budgeted expenditures by Japan. Much preferred figure would be 137.2 billion yen of which 4.5 billion yen would be regarded as replacement Japanese unilateral cut JFY 1954. Exact distribution 137.2 billion yen subject negotiation but our thinking is it [Page 63] would be distributed 86.8 billion yen for Defense Agency, 8 billion yen for rentals and airport runway extensions and 42.4 billion yen contribution U.S. Forces Japan.
Distribution between Defense Agency and U.S. Forces Japan left you and General Taylor negotiate in light importance placed on securing increased Japanese defense forces during coming Japanese fiscal year. However minimum acceptable figure for contribution U.S. Forces Japan is 38 billion yen.
In exchange notes embodying understanding with Japanese on this subject should be statement 4.5 billion yen of Japanese expenditures are regarded as replacement Japanese unilateral expenditures cut JFY 1954. However in this connection want be careful not use language which will prevent us from regarding total Japanese expenditures this year as level from which we start in considering Japanese increase next year. Also in exchange notes include language giving positive assurances it policy and intention Japanese Government devote larger portion own resources defense purposes Japanese Fiscal Year 1956 and ensuing years in accordance expectation expressed Security Treaty that Japan will increasingly assume responsibility own defense.
Proposed text exchange notes should be telegraphed for State–Defense concurrence.
Defense cannot concur position expressed above but accepts this message as being in conformity NSC decision April 7.
Make clear to Japanese interrelationship between their own defense effort and possibility expanded offshore procurement Japan. Less they contribute own defense effort thus increasing share U.S. bears less likely it is U.S. can find funds expand offshore procurement Japan beyond what now programmed.
- Source: Department of State, Central Files, 794.5/4–855. Secret; Niact. Drafted and approved by McClurkin who signed for Dulles. Cleared in draft with FE, S/MSA, and the Department of Defense.↩
- In each of these telegrams from Tokyo, both dated April 8, Allison urgently requested fresh instructions from Washington on the defense negotiations. (Both ibid.)↩