13. Memorandum From President Eisenhower to Secretary of State Dulles0
I return herewith without my approval the draft of the letter1 you recommended that I sign to the Prime Minister of Japan regarding the currency conversion proposed for the Ryukyu Islands.
This proposal seems to be one of doubtful wisdom, particularly because of its possible effect within Japan. I am sure that the use of American currency in the Islands would be interpreted in Japan as an unexpressed but nevertheless latent ambition of this country to annex those Islands. The mutual friendship and trust that have been built up between our country and Japan are extremely valuable and I do not see why we should chance damaging them in the effort to achieve a greater administrative efficiency.
If the Prime Minister of Japan himself recommends the use of American currency because of a favorable effect upon the Ryukyu economy, [Page 32] and would agree that the consideration would in his mind outweigh any fear of possible future attempts on our part to annex the Islands, then I would be ready to give my approval to the project.
In the meantime I suggest that Ambassador MacArthur be instructed to lay before Premier Kishi all the anticipated advantages and potential disadvantages of the proposal and to make a complete report to you.
After the matter has been so studied and reported on, I will be ready to consider the paper again.
- Source: Department of State, Central Files, 894C.13/6–458. Secret. A copy was sent to the Secretary of Defense.↩
- Attached to Dulles’ June 3 memorandum to Eisenhower. (Eisenhower Library, Whitman File, Dulles–Herter Series) A note on the source text by Goodpaster indicates the draft was retained by the White House. Also pertinent is Dulles’ memorandum of a conversation held with Eisenhower June 4. (Ibid., Dulles Papers, Meetings with the President) See Supplement for both.↩