30. Editorial Note
Following receipt of the instructions contained in telegram 2074 supra, Embassy officials and Japanese negotiators, the latter led by Ministers Shigemitsu and Ichimada, engaged in talks which, while intensely argued in matters of detail, resulted in agreement along the general lines of the minimum position stipulated in telegram 2074. [Page 64] The agreement was announced in a joint press release, transmitted in telegram 2671 from Tokyo, April 19. (Department of State, Central Files, 794.5/4–1955)
The outcome, and some considerations in the negotiations, were summarized in a study prepared in June by the Joint Staff of the Far East Command:
“Agreement reached in the middle of April 1955 provided for an overall defense budget of 132.7 billion yen, including yen contribution to support of U.S. Forces Japan of 38 billion yen which represented a reduction of 17.8 billion yen for JFY 55. The reduction was agreed to by the US in consideration of an agreement on the part of the Japanese Government: (a) to appropriate for the Japanese Defense Agency 86.8 billion yen, carry over about 22.7 billion yen from JFY 54 appropriation, provide the Defense Agency with contract authorization of about 10.2 billion yen exclusive of authorization for F86 and T33 programs, and provide, in addition to the Defense Agency budget, approximately 8 billion yen for the runway extension programs and for compensation to owners and suppliers of facilities used by USFJ; (b) to complete during JFY 55 the increased strength in its defense forces, as programmed, with new personnel being inducted at a constant rate throughout the fiscal year; (c) if the projected programs for the manufacture in Japan of F86 and T33 aircraft should be agreed upon, to provide funds for those programs outside the 132.7 billion yen contract authorization provided for the Defense Agency; (d) to devote a larger portion of its resources to defense purposes during JFY 56 and in ensuing years.” (This study, which bears no specific date, is filed as an attachment to a June 27 memorandum from Major General Paul D. Adams, Acting Assistant Chief of Staff, G–3, to H.N. Waddell, Staff Assistant in FE; ibid., 611.94/6–2754)
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For text of the Agreement relating to reduction of Japanese contributions under Article XXV of the Administrative Agreement, embodied in notes exchanged at Tokyo August 19, 1955, and entered into force that day, see TIAS 3494; 7 UST 193.