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

211.9441/5–2954

No. 765
Memorandum by the Acting Assistant Secretary of State for Far Eastern Affairs (Drumright) to the Secretary of State

confidential

[Washington,] June 3, 1954.

Subject:

• Compensation for Japanese Injured in Bikini Incident.

1. Informal negotiations have begun in Tokyo for settlement of Japanese claims arising from the recent United States nuclear test series in the Pacific. With the Department’s approval the Embassy tentatively proposed to the Foreign Office a settlement of $150,000.

2. The Foreign Office has now informally replied that the United States figure is too low and has estimated total damage to Japan at slightly over 7 million dollars. Of this total about $800,000 would be for direct damage and the remainder would be for loss of profits, depressed prices, and governmental expenditures. Attached at Tab A is Tokyo’s 2954¹ summarizing the Foreign Office position.

3. Ambassador Allison considers the problem as primarily political and not legal. He has discussed the problem with Foreign Minister Okazaki and recommends that he be authorized to negotiate for settlement at a figure between $500,000 and one million dollars. The Ambassador considers that ex gratia payment of about $800,000 (300 million yen) should not be ruled out and that even if negotiations should be conducted on a legal basis this is the figure the Japanese Government would probably maintain with considerable rigidity. Attached at Tab B is Tokyo’s 2960² summarizing the Embassy’s recommendation and stating that Ambassador Allison will wish to discuss this matter with the Secretary.³

4. FE considers that under the circumstances described by Embassy Tokyo and in view of the importance of this matter in United States–Japan relations, compensation settlement of as much as one million dollars would not be unreasonable.

5. A and H are of the opinion this problem should be informally discussed with appropriate members of both appropriations committees and both foreign affairs committees of the Congress in order to explain the situation and obtain their understanding.

Recommendation

FE recommends that Ambassador Allison and Assistant Secretary Morton meet with appropriate members of the Congress to discuss the problem of compensation to Japan and to obtain necessary congressional understanding in support of a lump-sum settlement not to exceed one million dollars. Upon the basis of this understanding further negotiations could then be carried on in Tokyo.⁴

1. Dated May 29, not printed. (211.9441/5–2954)
2. Dated May 31, not printed. (211.9441/5–3154)
3. No record of discussion of this subject between Ambassador Allison and the Secretary during the time the Ambassador was in Washington has been found in Department of State files.

4. A handwritten marginal note reads: “Seen and approved, June 3. John M. Allison”.

   The approval line of this memorandum is initialed by Dulles.