611.94/12–1451: Telegram
The United States Political Adviser to SCAP (Sebald) to the Secretary of State
Topad 1279. For Allison from Dulles. Yoshida in response to reading of memo reported my 1273 stated he had no objection in principle to fol course suggested but showed obvious reluctance to take this course if UK strongly opposed. He pleaded strongly for supreme effort by US to bring about agreement with UK on FE and China policies, stating that country like Japan in almost impossible position when confronted by major difference between two leading nations of free world. (Although Yoshida did not mention it in this connection other indications are that Japan greatly worried by Brit control of their trade in Southeast Asia and Africa through control of sterling bloc Japan having already accumulated sterling currency which cannot presently be used to best advantage. Under current payments agreement Brit have capability of severely restricting and channeling Japan’s trade with sterling and transferable account area.) I stated I wld bring to attention of Secretary desirability endeavoring to secure common policy as part of prospective discussions with Churchill.
Yoshida renewed suggestion that Japan might be able to play important role in weaning China away from domination by Sov politburo. [Page 1439] I spent considerable time developing nature of Sov Commie threat and fanatic ideological unity, expressing as my opinion that this unity only broken by augmenting the hardships of continued acceptance Sov domination and not by granting concessions which wld make life easier. [Dulles.]