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

65. Memorandum From the Director of the Office of Northeast Asian Affairs (McClurkin) to the Assistant Secretary of State for Far Eastern Affairs (Robertson)¹

Washington, December 22, 1955.

SUBJECT

• Japanese defense negotiations

1. The Embassy and the Far East Command have jointly recommended in telegram 1411 (Tab B)² a new United States proposal to Japan. Attached as Tab A is a telegram for your signature generally concurring in the recommendations of the Embassy and the Command.³ Defense has concurred. Salient points are:

(a) Embassy–FEC recommend that we try to get Japanese agreement to total defense expenditures by Japan in JFY56 of 142.7 billion yen, including 103.3 for Japan’s Defense Agency and 33.75 as Japan’s contribution to our forces. The figure of 103.3 conforms with Japan’s planned expenditure as set forth in the tentative Japanese six-year defense plan, which we hope the Japanese will carry out. The attached telegram³ authorizes the Embassy and the Command to make this proposal to Japan.

(b) The Embassy and the Command also recommend that we seek to obtain Japanese agreement on a general formula for increase of Japan’s defense spending for subsequent years in accordance with the six year plan. The formula goes like this:

	JFY 56	JFY 57	JFY 58	JFY 59
DA*	103.3	125.	145.	170.
Contribution	33.75	22.9	12.9	0.4

*DA figures conform with Japanese six-year defense plan.

We have concurred in this recommendation.

(c) Defense wants the Japanese to be advised of the importance of an adequate Japanese defense effort and of the prospect that we can place OSP orders in Japan up to $20 million in USFY57 if Japan will make a better effort than 142.7 billion yen. This position has been approved in Defense by General Fox⁴ in Mr. Gray’s office and by the Assistant Comptroller.⁵ This position is also set forth in the attached telegram to Tokyo, although I am uncertain of the advisability of giving specific figures where congressional action on the very delicate problem of foreign aid is involved.

(d) Because the Japanese Cabinet believes that Japan can not spend more than 140 billion yen for defense in the next fiscal year (Tokyo’s 1407, Tab C)⁶ and because of the need to help the conservatives in Japan achieve greater stability, I believe that we should be prepared to settle quickly at the figure of 140 billion yen if the Japanese do not accept the proposal of 142.7 billion yen. Defense is not happy at the prospect of going any lower than the figure last recommended by the Ambassador and General Lemnitzer. Defense however agreed to paragraph four of the attached telegram stating our willingness to consider going down to 140 billion yen if Tokyo reports that this is necessary to reach prompt agreement.

2. We have just received Tokyo’s 1435⁷Niact asking for urgent approval of their recommendations given in Tab B. I believe that our outgoing telegram sufficiently covers the points contained in Tokyo’s 1435 but we have not yet had a chance to consult with Defense. I have however added a paragraph to the outgoing telegram to the effect that we might think our message covers the points made in 1435.

Recommendation:

That you sign the attached Niact telegram to Tokyo.⁸

1. Source: Department of State, Central Files, 794.5/12–2255. Secret.
2. Dated December 20, not printed. (Ibid., 794.5/12–2055)
3. Sent as telegram 1319, December 22. Drafted in NA, cleared with the Department of Defense, and approved by Robertson, it is marked “State–Defense message” and “Pass FEC”.
3. Sent as telegram 1319, December 22. Drafted in NA, cleared with the Department of Defense, and approved by Robertson, it is marked “State–Defense message” and “Pass FEC”.
4. Lieutenant General Alonzo P. Fox was Director of Foreign Military Affairs in the Office of the Assistant Secretary of Defense for International Security Affairs.
5. Reference is uncertain.
6. See Document 63.
7. Supra.
8. See footnote 3 above.