894.10/8–2052
No. 593
Memorandum of Conversation, by Charles A. Sullivan, Director of
the Policy Division, Office of Foreign Military Affairs, Department
of Defense
Subject:
- Visit of Japanese Ambassador Araki with Secretary Lovett
Participants:
- Secretary Lovett
- Mr. Eikichi Araki, Japanese Ambassador
- Mr. Charles A. Sullivan
Ambassador Araki expressed the best wishes of his Government to Secretary Lovett, and indicated that he was very happy to have the opportunity to meet with him.
Secretary Lovett and Ambassador Araki discussed their mutual interest in banking. The Ambassador noted that on two occasions in his banking career, from 1923–1926 and 1935–1937, he was in New York with the Bank of Japan. Secretary Lovett mentioned that from the reports appearing in the press, Japan’s current financial situation is quite satisfactory. The Ambassador replied that this is correct since the present dollar balance of Japan is at a high level. However, he did not feel that this accurately reflects the Japanese economic situation. Mr. Araki outlined the current source of dollar earnings in Japan, including large US purchases in Japan as a result of the Korean operation, and expenditures of US soldiers—which he indicated amounted to at least $100,000,000 last year. Concerning Japanese exports, Mr. Araki stated that Japan exported approximately 300 million dollars in goods and services to the United States during the last year, and US imports amounted to approximately 1,100 million dollars. He stated this deficit is of definite concern to Japan because the US military procurement in Japan and expenditures of US troops is of a temporary nature.
Secretary Lovett mentioned that the loss of sources of supply of materials and markets on the mainland of China must also be of some concern to Japan since this means that alternate sources of supply and markets must be found. Ambassador Araki stated that this is correct, and that Japan has been and must continue to find [Page 1315] [sic] such alternate markets and sources of supply, mainly in Southeast Asia.
Secretary Lovett asked about the extent of Communist infiltration in Japan. Ambassador Araki stated that this is a serious problem in Japan, and that steps are being taken to curb Communist infiltration, particularly in Japanese youth groups. He also mentioned that unemployment of any nature would be serious in Japan since the Communists would immediately exploit it to the disadvantage of the Japanese Government. He stated, however, that he feels the Japanese Government is dealing and will continue to deal effectively with the Japanese Communist movement. Secretary Lovett mentioned that the Japanese National Police Reserve should be of considerable assistance in dealing with any internal Communist disturbances. The Secretary noted that the JNPR is currently being built up to a four-division force, and it is expected that 6 divisions will be established by 1954, and ten divisions by 1956. Ambassador Araki agreed, saying that this “military” force should provide a substantial measure of security for Japan. The Secretary mentioned that the combined US sea, air, and ground forces in Japan, together with the Japanese forces, would make it expensive if not foolhardy for any aggression against Japan.
Secretary Lovett mentioned that Soviet intentions in the Far East are such that they point a dagger at the heart of Japan, and this is one of the reasons we must not permit Korea to fall to the Communists. In this connection Secretary Lovett mentioned that he is not particularly hopeful of a truce in Korea since, if the Communists desired an armistice, they could have had one a year ago, and could have one today on reasonable terms. He mentioned that we must continue the struggle in Korea until we obtain a reasonable settlement.
Secretary Lovett mentioned that the North Koreans are a particularly primitive and barbaric type of people, and he asked Ambassador Araki whether Japan had difficulties with the North Koreans when they held Korea. Ambassador Araki replied in the affirmative, indicating that all Koreans are the same. However, the North Koreans are particularly difficult. He stated that at the time Japan was having difficulties on the Manchurian border they also had a rather difficult time with the North Koreans. He pointed out that North Korea has a tradition of invasion of South Korea. He attributed this to the Manchurian influence on the North Korean population.
It was mentioned that there are fairly large numbers of Koreans in Japan that are causing the Japanese Government some difficulty because of their relationship to the Communist organization in Japan. Ambassador Araki stated that of the approximately 600,000 [Page 1316] Koreans presently in Japan, a very large number are associated with the Communist movement. He stated that the Japanese Government plans to discuss this matter with the Korean Government at the forthcoming negotiations in an effort to repatriate the Koreans.
Ambassador Araki thanked the Secretary for the interview and stated that he hoped to have the opportunity to meet him again.
The meeting concluded at 1540.
Following the meeting, Mr. Sullivan escorted Ambassador Araki on a brief tour of the Pentagon.