FE files, lot 55 D 480

No. 828
Memorandum of Conversation, by the Ambassador to Japan (Allison)

secret

Subject:

  • Japanese Rearmament

Participants:

  • Japanese Ambassador to the U.S. Mr. S. Iguchi
  • American Ambassador to Japan Mr. John M. Allison

At the Secretary’s dinner for Prime Minister Yoshida last evening Ambassador Iguchi took me aside and said he had noted that the Secretary had not brought up with Mr. Yoshida the question of defense goals for the coming year. He assumed that the Secretary preferred to have this matter discussed in detail in Tokyo.

Mr. Iguchi then went on to say that he wanted me to know that the Prime Minister did not agree with Finance Minister Ogasawara that any increase in the Japanese defense budget for the coming year should be made up in its entirety by a cutback in the Japanese contribution to the American forces in Japan. According to Ambassador Iguchi, the Prime Minister supports the view presented here to Assistant Secretary Robertson and to me in Tokyo by Foreign Minister Okazaki which, in brief, is that while it will be necessary for Japan to request a substantial reduction in their contribution to the American forces, nevertheless they should also make an increase in their defense budget on their own. Ambassador Iguchi said that the Prime Minister was determined that this should be the government’s policy.

I expressed pleasure at receiving this information and I pointed out that in my opinion if Japan should adopt Finance Minister Ogasawara’s position it would create a most unfavorable reaction in government and Congressional circles here and might well jeopardize continued American economic and military assistance to Japan.