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

1757. For MacArthur from Robertson. Deptel 1726.1 Re Article XXV 2(b). We agreeable to deleting Article XXV 2(b) providing for yen contribution in new administrative arrangements. (FYI. As soon as we have reached agreement with GOJ on all major substantive points, we intend [Page 177] discuss entire package with appropriate Congressional committees. End FYI)

In interest of answering possible Congressional objections to dropping yen contribution most helpful if Fujiyama would affirm that GOJ intends take every practicable measure assure that funds derived from absence yen contribution will be used for Japanese defense forces.

Defense concurs.

Dillon
  1. Source: Department of State, Central Files, 611.94/5–2059. Confidential; Niact; Limit Distribution. Drafted by Sneider on May 18; cleared with L/FE, H in substance, and with DOD; and approved by Dillon. Repeated to CINCPAC exclusive for POLAD and Admiral Felt, and to COMUS/Japan exclusive for General Burns.
  2. Document 60.