894.00 TA/8–2354
No. 794
Memorandum by the Assistant Secretary of
State for Far Eastern Affairs (Robertson) to the Secretary of State1
Subject:
- Establishment of an FOA Mission in Japan
Officers of the Department have had an opportunity to examine the report of the recent Meyer Mission to Japan and to talk with Mr. Meyer, who has stated that Governor Stassen has approved the report.
Substantively the Meyer report says that more positive economic assistance to Japan is required than has been extended in the last two years, but also says that the sale for yen of surplus agricultural products is the only appropriate form of direct aid to Japan at this time. Organizationally Meyer recommends that if a decision is made to sell substantial amounts of surplus agricultural products to Japan for yen a small FOA Mission should be established in Japan with responsibility for representing the U.S. interest in this program and with a chief of Ministerial rank. Ambassador Allison concurs, “provided a U.S. program of economic assistance for Japan is developed which in size and scope would justify such establishment”.2
In recommending an agricultural surplus program of about $100 million a year, the Mission took no cognizance of the limitations of sales to Japan which may arise from terms of the Agricultural Trade Development and Assistance Act. It is by no means assured that sales of this magnitude will be feasible under those terms. The question cannot be resolved until the President has issued an Executive Order governing execution of the Act and until negotiations with Japan have proceeded. No substantial volume of yen proceeds requiring administration could accrue for some period after sales are agreed.
The Congressional policy that the FOA should expire at the end of the current fiscal year is also a relevant consideration.
Moreover, recent political developments in Japan suggest the desirability of moving cautiously at this time with respect to economic assistance.
[Page 1712]Recommendation
It is recommended that you inform Governor Stassen that a decision on the establishment of an FOA Mission should be withheld until the Executive Order under the Agricultural Trade Development Act has been issued and the extent to which Japan may be able to take advantage of the Act, including the uses to which yen funds might be put, can be better determined. A letter to Governor Stassen for your signature is attached as Tab A.3
- Drafted in NA and concurred in by S/MSA, E, and OFD.↩
- The quotation is from an attachment to the Meyer report entitled “Supplemental Statement by the Embassy”.↩
- Not printed. The attached letter was not sent as drafted. For text of the letter as sent, see Document 797.↩