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

894.10/12–3152: Telegram

No. 623
The Ambassador in Japan (Murphy) to the Department of State

secret
priority

Tokyo, December 31, 1952—7 p.m.

2101. I was informed last night that Japanese Cabinet is meeting today to approve 1953–1954 budget for submission Diet when reconvenes late January. This budget totals 940 billion yen but likely contain only 130 billion for defense of which 65 billion for support US Security Forces and 65 billion for NSF. Reduction defense budget based on maintenance forces no greater than 110,000 hence 56 billion in present budget for relocation US Security Force and expansion NSF considered one-time outlay which need not be repeated.

I informed Okazaki proposed reduction likely cause serious repercussions in US raising doubts re extent Japanese Government intends participate in own defense and might well cause Congress review most critically any program military assistance Japan. I suggested that in expansion of NSF beyond 110,000, development of embryo Air Force, and possible participation in cost heavy equipment ample justification could be found by Prime Minister to support a defense budget at least no smaller than current one.

As result I am now told that budget will carry 65 billion for support US Security Forces as separate item plus 80 billion for remainder Japanese Government defense program which amount will be hidden in larger sum including pensions and other items. Later this figure will necessarily be broken down into component parts in Diet presentation. By that time justification of appropriation in excess of sum required for maintenance 110,000 must be evolved. On this matter I shall, of course, confer with General Clark as well as Japanese Government. Cabinet gave tentative approval budget today but will review decision Jan 9.¹

Murphy

1. Ambassador Murphy reported in telegram 2113 from Tokyo, Jan. 3, 1953, that the FEC estimated that 97.6 billion yen would be required for a 110,000 man force (rather than the 80 billion yen tentatively budgeted) and that for a build up to a force level of 180,000, 226.5 billion yen would be required. The Ambassador continued:

   “Believe Japanese Government actually plans maintain force 110,000. Difference in cost estimates due chiefly inadequate provision by Japanese Government for training areas and facilities, essential stocks of equipment, and support services including maintenance and repair of equipment. Also possible Japanese officials secretly hope US will volunteer substantial reduction in JG participation yen costs US troops to provide adequate financing NSF.

   “Promised expansion NSF to 180,000 obviously not forthcoming in fiscal year 52–53 and now Japanese Government seeks postponement for another year. General Clark and I will press for expansion above 110,000 for purposes of record and tactics. I recognize however political difficulty Japanese Government in defending defense budget larger than current one and do not believe it possible obtain sum in excess 181 billion in 53–54 budget. In fact will be difficult persuade Japanese Government increase present estimate of 145 billion.” (794.5/1–353)