1. Telegram From the Department of State to the Embassy in Japan0

1479. Embtels 1703, 1704,1 1705.2 Matter discussed exhaustively with JCS and Defense this morning. JCS felt strongly for military reasons that Japan should abide by formula and we should insist on Japan’s carrying out her commitment. However State and Defense recognize overriding political considerations cited reftels. For reasons outlined Embtel 1704 it was reluctantly agreed to accept reduction three billion yen recommended Embtel 1705 for this year only. In this case total defense appropriations would be broken down as follows: Defense Agency 120 Facility Expenses 8 Yen Contribution 18.3 for total of 146.3 billion yen. This would mean that for next year formula agreed to in 19563 would again apply.

In view of great expenditure for defense which American people are called upon to make as contrasted Japanese efforts it was with greatest difficulty that we obtained Defense concurrence your recommendation.

If Japanese agree request you submit to Department draft exchange notes for approval before final commitment and signature.

Defense concurs this message.

[Page 2]

Japanese Embassy pressing for info on decision. Inform Department niact when discussions Tokyo advanced to point where we can inform them.4

  1. Source: Department of State, Central Files, 794.5/12–3057. Confidential; Priority. Drafted by Howard L. Parsons, cleared with Defense and JCS, and approved by Robertson. Repeated to COMUS/Japan and CINCPAC for POLAD.
  2. See Foreign Relations, 1955–1957, vol. XXIII, Part 1, footnotes 3 and 4, pp. 556 and 557.
  3. Not printed. (Department of State, Central Files, 794.5/12–3057)
  4. The formula agreed upon on April 25, 1956, stated that the United States would accept a reduction in the Japanese yen contribution for each ensuing fiscal year equivalent to one-half of the increase in Japanese expenditures for its own defense forces for that fiscal year as compared with the previous year. For text of the agreed formula, see 7 UST 771.
  5. Ambassador Douglas MacArthur II replied in telegram 1813 from Tokyo, January 13, that Japanese Foreign Minister Aiichiro Fujiyama expressed deep appreciation for the additional reduction, adding that the move “would do much to strengthen Japanese-American relations.” (Department of State, Central Files, 794.5/1–1358)