Foreign Relations of the United States, 1952–1954, China and Japan, Volume XIV, Part 2

110.15 AL/9–1552: Telegram

No. 598
The Secretary of State to the Embassy in Japan¹

secret

Washington, September 19, 1952—3:54 p.m.

738. Amb from Allison. Embtel 922 and Deptel 712.² Fol statement has been cleared interested agencies for use as you consider appropriate. I believe statement cld best be used as part of speech you may have scheduled before prominent Jap audience prior elections. Use of statement as official press release by Jap Govt might appear as too obvious attempt US influence election. However, I leave this entirely your discretion.

$750 million estimate special US expenditures US FY 53 based on balance of payments projection recently made by Dept with assistance of Defense and Emb. ICFEM draft paper No. 22 dated Aug. 8, 1952³ sent to Kerr⁴ by Hemmendinger is source of estimate. $765 million minimum special earnings shown in that report rounded to $750 million for purposes this statement. Info available in Wash indicates this estimate minimum expenditures still reasonably accurate but suggest major components this estimate be confirmed FEC Comptroller prior release of statement. Fol is text suggested statement:

“The US Govt is particularly pleased that Jap recently was admitted to membership in the Internatl Monetary Fund and the Internl Bank for Reconstruction and Development. The US Govt also notes with satisfaction Japs increasing participation in the econ activities of the free world, for the US Govt firmly believes Japs resumption of internatl trade and econ relations is an important factor in world economy. It is, of course, obvious that econ recovery after a devastating war is not without tremendous difficulties. In line with US objectives in contributing to the security and econ well-being of friendly nations in the FE, the responsible agencies of the US are fol with the closest attn Jap efforts to strengthen their economy and improve the living standards of the Jap people as one important aspect of the econ development of the whole area. The US Govt naturally is willing to consider rendering technical and econ assistance in the furtherance of this development.

“The US will continue to procure a substantial vol of goods and services in Jap and thus directly aid Jap in balancing its internatl accts. Such procurement will include expenditures: (1) for the maintenance of US forces stationed in Jap; (2) by US mil and civ employees and their dependants in Jap; (3) for goods and services needed in connection with the Korean hostilities and Korean relief and rehabilitation and (4) for goods and services needed in connection with US assistance programs in the FE. The US anticipates that the total of such expenditures will approximate $750 million in the current US FY, that is, between July 1 of this year and June 30, 1953.”⁵

Acheson

1. Drafted in NA by Cronk and cleared by him with ED, the Department of Defense, and the Export-Import Bank; approved for transmission by Allison.
2. Dated Sept. 15 and 16, respectively; see footnote 3, supra.
3. Not found in Department of State files.
4. Peyton Kerr, First Secretary of the Embassy in Japan.

5. In telegram 981 from Tokyo, Sept. 21, marked “For Allison”, Ambassador Murphy expressed appreciation for clearance of the statement and stated that he planned to make use of the text in a speech before the United Nations Association of Japan on Sept. 24. (110.15 AL/9–2152) In a memorandum to Secretary Acheson dated Oct. 2, Johnson indicated that Murphy had definitely made a public statement along the lines indicated above. (794.00/10–252)

   In the elections held Oct. 1, the Liberals won 243 of the 466 seats in the House of Representatives (lower house of the Diet).