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

794.5/10–3052: Telegram

No. 610
The Acting Secretary of State to the Embassy in Japan¹

top secret
priority

Washington, October 30, 1952—6:33 p.m.

1125. For Amb Murphy, pass Gen Clark. Def concurs this msg. Reference is made to JCS msg dated 3 Oct to CINCFE² re planning assumptions to be used in discussing Jap rearmament and related problems.

Defense submitted prelim FY54 mil assistance requirements JNPR to ODMS 26 Sept 52. Program totals $521.7 million; breakdown: $308 million Army, $30 million Navy, $183.7 million Air Force. Depending on type and quantity equipment decided upon this wld provide 50% of Army, 25% of Navy, and 40% of Air Force force bases as approved for FY53 by JCS. Nature and extent aid programs for Jap still under discussion. Above aid estimates considered highly tentative. State has transmitted to ODMS econ justification mil assistance program. Copy pouched Emb.³ No request for econ aid being made.

State presentation indicates prelim estimate Jap defense burden FY54 will range between 200 and 225 billion yen including estimated 65 billion yen for support US forces. Also indicates expenditure by Jap $50 to $100 million (in addition to 200 to 225 billion yen) for US equipment and supplies if balance-of-payments outlook and fon exchange holdings permit. This wld consist largely of spare parts and reserve combat expendables additional to that provided under mil assistance program.

Considered here that justification mil assistance request vulnerable since assistance not related to specific jointly-agreed defense program for FY54 and since no commitment yet obtained from Jap Govt relative to its intentions support expansion defense force. Also, fact that Jap currently in favorable balance-of-payments and Fon exchange position weakens justification for large-scale US assistance. Consider it necessary reach agreement with Jap Govt relative to FY54 defense program and be able show Congress Jap willing assume appropriate share total defense costs. Also must be able relate US mil assistance to definite and agreed defense program.

Consider it imperative US discuss mil-econ problems Jap Govt highest level earliest possible date in hopes influencing formulation JFY53 budget prior its transmission to Diet. Also necessary reach agreement these questions prior transmission FY54 Mutual Security Program to Congress early Jan. Assume Amb Murphy and Gen Clark wld represent US these discussions. Request asap your present recommendation earliest feasible timing such discussions.

In preparation US position these questions, wld appreciate current thinking Emb and CINCFE on fol:

1. Desirable and feasible rate of buildup Jap land, sea, and air forces through USFY54, taking into acct polit as well as econ and mil factors.

2. Yen and dol costs involved through USFY54. If possible, indicate cost estimate by general expenditure category (construction, pay and allowances, etc) for each service.

3. Jap financial capacity meet these costs and costs maintaining US forces under terms Admin Agreement.

Same info USFY55 desired but less urgently.

Jap may wish discuss level Jap Govt support US forces concurrently with discussions re costs JNPR program. Feeling here that this question cannot be handled separately and that its inclusion in gen mil-econ discussions wld probably strengthen US bargaining position this matter.

Appreciate reply soonest.

Bruce

1. Drafted in NA and in the Office of Military Assistance, Department of Defense; cleared in S/MSA and by Matthews in G; and approved for transmission by Johnson. An attached note indicates that the telegram was also approved by General Bradley.
2. JCS 920166, not printed. (Department of Defense files)
3. Not found in Department of State files.