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

141958. 1. Please deliver following message from the President to Prime Minister Sato as soon as possible.

“Dear Mr. Prime Minister:

I have read your thoughtful letter of March 25, 19682 and wish, first of all, to express my appreciation for the renewed support you have given to the goals of our balance of payments program announced on January 1 of this year. The role that Japan is playing in support of this program is encouraging, particularly in view of the present balance of payments position in Japan. I am certain that I can continue to count on that support in our common interest.

I also recognize the deep concerns you feel over the possibility of the United States Government’s taking measures such as border tax adjustments or an import surcharge. As I have frequently stated, the United States Government has every intention of meeting its international responsibilities in the promotion and expansion of world trade as well as in all other areas. We are, however, faced with an extremely serious balance of payments deficit which must be reduced. Improvement in our trade account is critical to the success of our balance of payments program. We would hope the improvement could be effected not only by the internal measures to restrain inflation we are determined to take but also by the early cooperative expansionary action of our major trading partners. In this connection, I particularly welcome the Japanese Government’s readiness to accelerate its Kennedy Round cuts and its offer to take other trade-freeing actions. It would be most heartening if a satisfactory solution could be found through cooperative international action. I hope therefore that the Japanese Government will exert its maximum influence toward finding an expansionary solution.

Sincerely, Lyndon B. Johnson

2. White House does not plan to release and assumes Sato will treat message as private correspondence.

Katzenbach
  1. Source: Department of State, Central Files, FN 12 US. Limited Official Use; Priority. Drafted by Paul K. Stahnke (EA/J) on April 4; cleared by Fried, Barnett (E), Malmgren (STR), Ruth Gold (E), Thomas O. Enders (M), Richard L. Sneider (EA/J), and John R. Petty (Treasury) all in draft; and approved by Francis J. Meehan (S/S).
  2. This letter has not been found, but its contents are briefly summarized in telegram 136790 to Tokyo, March 26. (Ibid., POL 7 JAPAN)