794.5/12–2354
No. 843
Memorandum by the Acting Director of the
Office of Northeast Asian Affairs (McClurkin) to the Deputy Assistant
Secretary of State for Far Eastern Affairs (Sebald)
Subject:
- Japanese Defense Measures
Japanese Position
The Japanese Defense Agency has tentatively programmed for the fiscal year beginning April 1, 1956 an increase in ground forces of 20,000, navy–4,000 and air–6,000 and has requested a budget appropriation of 95.2 billion yen, including 67.4 billion yen for maintenance of present forces and 27.8 billion yen for increased forces. Last year’s budget provided 78.8 billion yen for the defense forces plus 58.5 billion yen for the support of United States security forces under Article XXV of the Administrative Agreement—a total of 137.3 billion yen. The Defense Agency budget was later cut back to 74.3 billion yen. In view of tentative Japanese Government plans to keep the total JFY 1955 budget below a one trillion yen ceiling, with priority to unemployment and disaster relief measures, the Japanese Government will undoubtedly take the position that defense expenditures must be kept at the JFY 1954 level of 137.3 billion yen. It can therefore be expected that the Japanese will argue that increase in defense forces will be dependent on United States willingness to reduce Japan’s contribution under Article XXV by approximately 16 billion yen (about $44 million).
[Here follows a summary of the recommended United States position set forth in telegram 1403 from Tokyo, Document 838.]
Department of Defense Position
On November 8 [5] in a memorandum to the Secretary of Defense transmitted to the Secretary under cover of a letter from the [Page 1814] Secretary of Defense, dated December 10, 1954, the JCS took the position that if Japan was willing to increase its total defense budget for JFY 55 above as a base figure of 85 billion yen, the JCS would agree to a reduction of the United States share of the defense budget equivalent to one-half of the amount of that appropriated above the base figure.
In view of the JCS determination, Defense takes the position that the negotiations should be initiated on the basis of the 90 billion yen base figure and that no retreat position should be authorized below the base figure of 85 billion yen.
NA Position
We think that the 90 billion figure as an initial negotiating position is totally unrealistic, and have little or no expectation that the 78.8 or 73.8 yen figure will prove acceptable to the Japanese Government. However, it appears impossible to prove this either to the Far Eastern Command or to the Department of Defense without going through the process of an agonizing and unsuccessful negotiation with the Japanese.
In view of the present inflexibility of the Defense and JCS position, NA sees no advantage in prolonging the discussion in Washington. If we are right about the Japanese position, the Embassy-Command discussions with the Japanese will make evident the unreality of the JCS position. A strong recommendation from the Command in Tokyo will have more effect on the JCS than any time consuming discussions in Washington. In any event it is unlikely in view of the present political situation in Japan that any final agreement will be reached with the Japanese Government until the new Diet convenes after the elections which are expected to be held in early March. Consequently NA recommends that we accept the Defense position and authorize the Embassy and Command to initiate the discussions on the basis of the 90 billion yen base figure dropping down to the 85 billion yen base figure if the initial position is unacceptable to the Japanese.
Recommendation:
That you approve and sign the attached cable.1
Clearance:
Department of Defense.
- Attachment sent as telegram 1271 to Tokyo, Dec. 24. It instructed the Embassy to negotiate along the lines set forth in this memorandum. (794.5/12–1554)↩