87. Telegram From the Department of State to the Embassy in Japan1

322. Friday August 10 there was long conference between Murphy and Assistant Secretary Defense Gray on Okinawan land problem.2 General Lemnitzer had pressed Army to clarify United States position namely is Price Report basis our policy. Defense drafted telegram to Lemnitzer3 before State Department position was crystalized and passed to us for concurrence.

Main points Defense draft were (1) Price Report basis United States national policy (2) Implementation should be slow and careful (3) United States to acquire fee title where possible by voluntary consent (4) Where fee title unobtainable, ninety-nine or fifty year easements [Page 199] renewable at option (5) Lump sum payments for such easements or long term interest could be deposited in government fund and annual payments made therefrom at option landowner.

State Department keeping-in mind various suggestions in recent telegrams from both Tokyo and Naha proposed following amendments:

(1)
Price Report in general basis our policy.
(2)
No lands should be taken in fee simple.
(3)
Long term interests of indefinite duration should be acquired through USCAR action.
(4)
Advisable program be started respect lands having permanent facilities and condemnation proceedings should be resorted to at first only in case of lands having permanent or essential facilities.
(5)
Interest to be vested officially in GRI but by USCAR ordinance lands to be for use of U.S. armed forces.

Result Friday conference Defense seems willing accept all points except vesting nominal interest in GRI. Would prefer USCAR but taking matter under advisement.

Considerations of importance to Army and to Defense are:

(1)
Acquisition Okinawan land should have psychological effect of impressing Japanese and Okinawans U.S. will remain Okinawa permanently for practical purposes.
(2)
Acquisition must be precisely as set forth Price Report if Army is to be able explain action to Congress and obtain further necessary funds.

Rationale Department’s proposed amendments:

(1)
Agree Tokyo preferable not continue use words Price Report though in general it is basis for framework
(2)
Fee title even if obtained from relatively few could be magnified by hostile elements indicate U.S. intends remain permanently, violating Japanese residual sovereignty and permanently alienating land. Therefore oppose fee title but willing agree to lump sum payment for long term interest. Department has been impressed by John Steeves’ arguments in favor lump sum payments and has concluded that it is best go along with Defense on this point, especially in view latitude contemplated in manner of making such proceeds available owners over period years.
(3)
Defense unwilling accept 20 or 25 year term, and term 50 or 99 years would be politically unacceptable Ryukyuans and Japanese. Department believes indefinite term, which after all best reflection officially stated policy of tenure is best for land acquisition. Any specification number years regardless length lead to political reaction some group either in Japan or Ryukyus.
(4)
Condemnation proceedings of land having permanent structure etc conforms Japanese practice.
(5)
Vesting interest GRI conforms most closely U.S. practice elsewhere abroad where title or long term interest vests in local governments. Also believe vesting title GRI psychologically most acceptable [Page 200] Japanese and Ryukyuans. Defense fears acquiring land interest in name third party unacceptable Congress but Congress has shown willingness do this Philippines. Vesting interest GRI would moreover require no positive act by GRI as all action can be taken by USCAR and documented by USCAR by ordinance.

Telegram will advise Lemnitzer make statement giving essential features program. Believe not essential additional policy statement emanate from Washington. Lemnitzer being advised work closely with Embassy. State–Defense agreement probable next few days, and some modifications State positions outlined above may be necessary. Will keep you advised developments.

Dulles
  1. Source: Department of State, Central Files, 794C.0221/8–1156. Secret; No Distribution Outside Department. Drafted and approved in NA. Also sent to Naha.
  2. A memorandum of this conversation, drafted in NA on August 15, is ibid., 794C.0221/8–1056.
  3. Not found. A revision of this draft, embodying agreements reached at the meeting of August 10, is attached to the memorandum cited in footnote 2 above.