No. 713
Editorial Note
Upon conclusion of the Ikeda talks on October 30, the two sides issued the following joint statement:
“Mr. Hayato Ikeda, the personal representative of the Prime Minister of Japan, and his party had a series of conferences with Mr. Walter S. Robertson, Assistant Secretary of State for Far Eastern Affairs, and other officials of the United States Government during the past four weeks.
“The talks covered various interrelated problems of mutual interest such as Japan’s defense build-up, United States assistance, settlement for United States postwar economic aid (GARIOA), foreign investment, and trade with Communist China. The informal exchange of views on these subjects was most profitable and lays the ground work for further cooperation between the two countries. [Page 1550] The discussions were exploratory and no agreements were entered into. Certain general understandings are set forth below.
“The conferees agreed on the necessity of increasing Japan’s self-defense forces in order to protect her from possible aggression, and to reduce the United States burden related to the defense of Japan. It was however, noted that under present circumstances there are constitutional, economic, budgetary and other limitations which will not allow the immediate building of Japan’s self-defense forces to a point sufficient for Japan’s defense. With due regard to these limitations, continued effort on the part of Japan will be made to expedite the build-up. Subject to necessary or items of military equipment for the land, sea and air forces which Japan raises.
“Questions relating to Japanese defense forces and United States military assistance will be discussed further in Tokyo in the near future by representatives of the two governments with a view to reaching a definite understanding.
“The conferees agreed that a reduction in Japan’s contribution to the support of United States forces should be considered from time to time in the light of the development of Japan’s own forces. It was also agreed that the withdrawal of the United States forces from Japan would be effected as the Japanese forces develop the capability to defend their country.
“The conferees considered that $50 million is a reasonable target amount for commodities to be supplied to Japan under Section 550 of the Mutual Security Act. It is contemplated that the local currency proceeds of the sale of such agricultural products will be used to help develop the defense production and the industrial potential of Japan through offshore procurement and investment. Necessary arrangements will be executed to cover the requirements of Section 550 and the related defense support activities.
“The conferees recognized that pending a political settlement in Korea it is important to maintain a high level of controls over trade with Communist China. However, the implications of these controls for Japanese trade are such that the United States and Japan will continue current consultations on the items to be controlled.
“The United States conferees attached great importance to an early settlement for GARIOA aid. It was agreed to hold a meeting in Tokyo in the near future between representatives of the United States and Japan with a view to reaching an agreement on the settlement.
“As to foreign investment in Japan, the investment guaranty program under the Mutual Security Act and the Contact Clearing House Service, as well as the services of the United States Department of Commerce, were suggested as helpful measures to be taken on the side of the United States, while willingness on the part of Japan to liberalize Japanese laws and regulations pertaining to foreign investments was expressed by the Japanese conferees in order to create a better climate for foreign investment.
“The Japanese conferees expressed their belief that vigorous efforts on the part of Japan to resist inflation are most important in order to strengthen Japan’s economic position and to promote further economic cooperation between the United States and Japan.
[Page 1551]“It was gratifying for all the conferees to learn that while they were in conference the $40 million loans for Japanese thermal electric projects were signed by the International Bank and Japanese representatives, and that the $60 million cotton credit to Japan was announced by the Export-Import Bank of Washington.” (Department of State Bulletin, November 9, 1953, page 637)
In telegram 1039 to Tokyo, October 30, drafted in NA and approved for transmission by Robertson, the Department informed the Embassy of the joint statement and stated that there was “no secret memorandum of understanding; press release only agreed document. Outcome in general accord your recommendations. Much appreciate your prompt and valued advice.” (033.9411/10–3053)