794.5 MSP/9–1654: Telegram
No. 804
The Ambassador in Japan (Allison) to the Department of State
confidential
Tokyo, September 16, 1954—6
p.m.
644. Re Deptel 551.1
- 1.
- Breakdown defense budget cut submitted by Japanese Embassy substantially accurate. Detailed NDA, budget figures recently obtained through unofficial channels also indicate cut of 5.7 percent in 78.8 billion yen figure. Cut more severe if calculated on basis original budget approved by Diet—81.4 billion yen of which Finance Ministry allocated only 78.8 billion yen.
- 2.
- MAAG believes budget cut will
seriously hurt morale and training effectiveness defense forces,
specifically
- (1)
- Activation of units and induction of personnel will be postponed as long as possible;
- (2)
- 26 percent cut in POL and 17 percent cut in training funds in addition to other cuts in funds for transportation will drastically reduce troop movements, training exercises despite major need for platoon to division training;
- (3)
- Stock levels already inadequate will be further reduced (many vehicles presently inoperative due to shortage spare parts);
- (4)
- Construction and shipbuilding both cut 10 percent despite inadequacies of present facilities and need for naval vessels;
- (5)
- Fuel cut 11.6 percent with every prospect troops moving to Hokkaido will have totally inadequate heating facilities. In effect, while budget cuts will not effect projected force levels of end of JFY 1954, except for Navy, effectiveness and quality of Armed Forces materially reduced.
- 3.
- Explanation of cuts on grounds 9.3 percent price level decline not considered valid. Most recent wholesale price index indicates price decline only 7 percent.
- 4.
- With respect to disposition of savings, Japanese Government has authority with approval Finance Minister and Prime Minister [Page 1729] to shift funds to procurement additional defense items. However, present indications are government will not utilize authority.
- 5.
- Foreign Office has delayed making formal approach to Embassy on budget cut ostensibly on ground details not yet available for presentation. Foreign Office apparently embarrassed by failure recall provisions Allison–Okazaki letters of April 6 and seek US consent prior to cutting defense budget.
Allison