64. Memorandum From Secretary of State Rogers to President Nixon1

SUBJECT

  • U.S.-Japan Textile Negotiations

I am increasingly concerned that the protracted negotiations with Japan over textiles are weakening the U.S.-Japan relationship, giving impetus to unwholesome aspects of Japanese nationalism, and affecting the stability of the Sato Government. While I share your exasperation with the poor political handling of this problem in Japan, it would clearly be inimical to our interest if this dispute were to weaken the influence of Prime Minister Sato to the point where he would be unable to determine his successor. I thus believe there are important foreign policy considerations for achieving a compromise solution as soon as possible.

Peter Flanigan is conducting the negotiations with skill and perseverance and I gather there is some prospect for an agreement.2 I am prepared to be of whatever assistance may be helpful.

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If and when an agreement is reached, it would be useful to portray it to the extent feasible in terms of a mutual agreement involving the broad national interests of both countries.

William P. Rogers
  1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 400, Subject Files, Textiles, Vol. III, 1 Dec 70–31 Dec 70. Secret. Kissinger passed this memorandum to Nixon on December 23, who subsequently noted it. (Ibid.) Bergsten also sent this memorandum to the President under a December 15 covering memorandum, stating that the negotiations should be promptly concluded with an agreement as the result. Bergsten continued, “If we lose the leverage of possible quota legislation, as now appears likely at least for this session, it may become even more difficult to redeem your commitment. In addition, a prolongation of the textile problem would overhang our overall trade policy next year, and therefore continue to raise foreign policy problems with Europe as well as with Japan. Flanigan is currently working with the industry to try to get their support for an agreement which he believes would be agreed to by the Japanese.” (Ibid.)
  2. Flanigan concurred with Rogers’ view, although he suggested that Kissinger inform the President that the objective of his negotiations with the U.S. textile industry was a negotiating position that the Japanese government could accept. (Memorandum from Flanigan to Kissinger, December 15; ibid.) Flanigan’s talks with U.S. textile interests went very poorly, however, and he made little headway moving them toward the Japanese negotiating position. (Memorandum from Kennedy to Kissinger, December 16; ibid., Box 535, Country Files, Far East, Japan, Vol. III, 7/70 to Dec 70) The Japanese textile industry staged public demonstrations against concessions made by the Japanese government in the textile negotiations. (Telegram 10217 from Tokyo, December 17; ibid., Box 400, Subject Files, Textiles, Vol. III, 1 Dec 70–31 Dec 70)