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

Conference files, lot 60 D 627, CF 397

No. 826
United States Summary Minutes of Meeting¹

official use only
JAT AM–12

[Washington,] November 8, 1954—4:30 p.m.

Participants

• Japanese Side
• Prime Minister Yoshida
• Ambassador Iguchi
• Minister Aichi
• Mr. E. Sato
• Mr. A. Matsui
• United States Side
• Secretary of Defense Wilson
• Vice Admiral Davis
• Mr. Charles Sullivan
• Mr. Richard B. Finn

Defense Roads

Prime Minister Yoshida recalled that he had discussed with Secretary Wilson the subject of constructing defense roads when the Secretary was last in Tokyo² and said he wished to stress the importance of this project. The Prime Minister commented that such a construction program would help relieve unemployment caused by Japan’s austerity program and would also repair the damage done by heavy United States military vehicles in Japan. He also commented on the fine highways he had observed in the United States.

Secretary Wilson said that a road-building project would be a good thing but that of course he could not go into the question of who would pay for the program. He added that good roads are a benefit for many purposes and not just for military use. The Secretary observed that we all hoped such a road system would not be required for military action in the defense of Japan. An added advantage the Secretary felt is the fact that Japan has all the necessary materials for road construction and would not have to use foreign exchange for this purpose.

Defense Industries

Ambassador Iguchi and Minister Aichi both said that Japan desires to use yen proceeds arising from purchase of United States agriculture commodities for the development of defense industries and asked the Secretary’s assistance. Secretary Wilson replied that there are a number of problems connected with the sale of these agricultural commodities and the use of the yen proceeds. He said he understood these problems were being discussed at different levels by representatives of Japan and the United States.

The meeting ended at 4:45 p.m.

1. Drafted by Finn and circulated on Nov. 10.
2. In May 1954. In a position paper dated Nov. 5, prepared for the Yoshida visit, Lt. Commander Harriet P. Coxen of the Department of Defense stated in part that Japan was currently requesting a $210 million contribution (largely in U.S.-held yen) over a 2–year period for this project and that General Hull considered it militarily desirable. “U.S. will give attention to Japanese proposal for assistance in connection with road construction plan under the surplus agricultural program, but considers it of low priority in comparison with other phases of defense and economic development in Japan, such as rearmament, industrial defense base, communication and warning systems, agriculture and power development, development of export industries and other measures of national interest.” (Conference files, lot 60 D 627, CF 397, JAT D–2/5b)