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56. ECONOMIC POSITION OF JAPAN: Statements by the Secretary of State at a News Conference, August 10, 1954 1

1

The United States recognizes that one of the major postwar problems is the problem of finding opportunities whereby Japan, with its large and industrious population, can find a way to earn a useful and profitable living in the world.

Japan itself possesses very few natural resources, and it does not produce enough food for its people. It produces normally about 80 percent of the foodstuffs that the people require. This year it produced somewhat less because there was a bad failure of the rice crop. That means the Japanese have to be importing goods and raw materials and manufacturing raw materials into articles which the rest of the world needs. Goods which are distinctly of Japanese origin generally pay rather high tariff duties throughout the world because Japan has not been heretofore brought into the GATT organization,2 nor does it benefit from the reductions which have been made in tariff rates in favor of the distinctive products of many other countries.

It is the hope of the United States that steps may be taken to improve the opportunities for Japanese trade, not just in the United States, I will emphasize, but in other countries of the world where there are actually more natural markets for much of what Japan produces. There is no necessity actually to increase largely Japanese imports to the United States. What is needed, rather, is to try to find other areas of the world where the type of goods which Japan produces will be able to find markets.

The problem is a many-sided one. The negotiation of a trade agreement on a multilateral basis is one angle to the problem. Another angle to the problem is the need for an austerity program in Japan, which has been lacking somewhat over recent years but which seems to be taking shape at the present time. Also there is the importance of developing markets in Asia, particularly in the Southeast Asia area, where there are large populations which need the kind of things which Japan makes so well and which also produce food and raw materials which Japan needs.

All of these aspects of the problem need to be explored and I hope will be explored.

Asked whether, in view of the fact that the administration asked for no economic assistance for Japan this year, it may be necessary for the United States to reconsider the possibility of some direct assistance to Japan this year, Mr. Dulles replied:

It is possible, but we do not think that that will be necessary. It may be desirable to make available some foodstuffs to Japan out of our surplus food crops and to do so on terms which would be liberal

1 Department of State Bulletin, Aug. 23, 1954, pp. 264–265. See also address of Jan. 14, 1954, by Frank A. Waring, Counselor for Economic Affairs at the American Embassy at Tokyo; ibid., Feb. 22, 1954, pp. 293–295.

2 See statement of Jan. 19, 1954, by the Department of State; ibid., Feb. 1, 1954, pp. 154-155.

from the standpoint of payment-possibly in terms of local currency. But we do not anticipate the necessity for any economic aid to Japan, on the assumption that the Japanese handle their own fiscal and commercial affairs with prudence and firmness.

It seems to us the situation can be dealt with without any direct economic aid. There is, of course, a certain amount of assistance that goes to Japan through our contribution to their enlarged security program. There are still a substantial number of U.S. troops in Japan who are spending money there. In that way there is a considerable amount of what you might call invisible exports to Japan which runs up into terms of several hundred million dollars. This is not nearly as big as it was at the height of the Korean War, when there were heavy purchases in Japan for use in Korea. There is a certain decline there, but the figure is still quite a substantial one.

57. REVIEW

OF

AMERICAN-JAPANESE

RELATIONS: Joint

Statement by the President of the United States and the Prime Minister of Japan, November 10, 1954 1

President Eisenhower and Prime Minister Yoshida met on November 9 and reaffirmed the spirit of friendly cooperation characterizing the relations between the United States and Japan. The Prime Minister also met with Secretary of State Dulles, Secretary of Treasury Humphrey, Secretary of Defense Wilson, and Director Stassen of the Foreign Operations Administration. The Prime Minister and Secretary Dulles at their meetings this week, after a full and frank exchange of views on matters of mutual interest, reviewed the conversations held during the past 3 weeks by representatives of the two governments.

I

The President and the Prime Minister agreed that the solidarity and determination of the free nations had greatly advanced the cause of world peace. They declared that their governments would, in cooperation with the free nations of Asia, continue their united efforts to maintain and promote the peace and prosperity of Asia. The Prime Minister reaffirmed his Government's determination to make a full contribution to those efforts and in particular stressed Japan's desire to cooperate, wherever possible, in the development of economic strength by the free nations of Asia.

The President and the Prime Minister declared that the goals of their governments are peaceful and that their peoples desire peace and liberty for themselves and their neighbors.

II

Representatives of both governments discussed Japan's economic situation in detail. It was agreed that the economic well-being of the

1 Department of State Bulletin, Nov. 22, 1954, pp. 765–766.

Japanese people is a matter of importance to the entire free world. The achievement of improved economic conditions in Japan depends partly upon the ability of the Japanese people themselves to pursue sound and constructive internal monetary and other economic policies and partly upon Japan's ability to expand its trade with other countries. By various means since the end of the war the United States has been able to contribute substantially to the economic progress which Japan has achieved. The United States is aware of the efforts which Japan is making to solve its difficult economic problems and will continue to examine sympathetically means whereby it can assist the Japanese people to advance their well-being.

A number of specific measures were discussed in the recent talks. General agreement was reached that the United States would cooperate with Japan in its efforts to expand its foreign trade and achieve a better balance in its foreign economic relations. It was further agreed that the United States would sell to Japan agricultural commodities and that a substantial portion of the proceeds of these sales will be used for Japan's domestic economic improvement and defense support and for regional economic development. Other steps were discussed, such as the establishment of a productivity program in Japan and the mutual benefits which might arise from Japan's participation with the other free nations of South and Southeast Asia in the economic development of that area. Both sides agreed that these measures would be of marked benefit to Japan by improving its economic position and facilitating its efforts to attain a higher standard of living.

III

United States representatives expressed regret over the incident on March 1 in which 23 Japanese fishermen were injured-one fatally-by the fall-out of radioactive materials following a nuclear test in the Pacific. They emphasized their belief that peaceful uses of atomic energy would be steadily developed and would eventually become of great value to Japan and other friendly nations throughout the world.

IV

There was also discussion of the disposition of Japanese assets vested by the United States, and representatives of the United States stated that this matter is under consideration. Among other subjects reviewed were Communist efforts to weaken and discredit the operations of free governments in Asia, the request of Japan for expedited consideration of the cases of war criminals, and the status of the Ryukyu and Bonin Islands in the light of the present international situation as well as the desire of Japan for the return to the Bonin Islands of former inhabitants.

1 See statement by the Department of State, Mar. 17, 1954 (Department of State Bulletin, Mar. 29, 1954, p. 466); statement by the American Ambassador at Tokyo, Apr. 9, 1954 (ibid., Apr. 19, 1954, pp. 598-599); and note from the American Ambassador to the Japanese Foreign Minister, Jan. 4, 1955 (ibid., Jan. 17, 1955, pp. 90-91).

58.

BENEFICENT EFFECT OF JAPAN'S ACCESSION TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE: Statement by the Department of State, July 22, 19551

2

The President on July 22, 1955, signed a proclamation to give effect to the results of the recent negotiations for the accession of Japan to the General Agreement on Tariffs and Trade. Under the Protocol for the Accession of Japan, which was signed for the United States on June 8, 1955,3 Japan will become a Contracting Party and the concessions negotiated between the United States and Japan will become effective on September 10, 1955, if by August 11, 1955, twothirds of the Contracting Parties to the general agreement have cast favorable votes on a decision for the accession of Japan under the terms of the protocol. The proclamation provides that the date of entry into force of the concessions negotiated by the United States shall be notified by the President to the Secretary of the Treasury and published in the Federal Register. An analysis of the results of these negotiations was issued by the Department of State on June 9, 1955.*

As a result of the provisions of the exclusive trade agreement between the United States and Cuba, concluded on October 30, 1947,5 certain reductions in rates negotiated in connection with the accession of Japan will result in the elimination of the preferential tariff treatment now enjoyed by like Cuban products. There follows on page 230 a list of these Cuban products indicating the changes in duty which will result from the entry into force of the Protocol for the Accession of Japan.

The proclamation also provides that effect shall be given to concessions negotiated with Canada and the Benelux countries (Belgium, the Netherlands, Luxembourg) as compensation for statutory increases in the duty on fish sticks and on certain rubber-soled footwear, on both of which concessions had been granted in the general agreement. The proclamation provides that the date of the entry into force of these compensatory concessions shall be notified by the President to the Secretary of the Treasury and published in the Federal Register.

1 Department of State Bulletin, Aug. 8, 1955, p. 226. See also statement of Aug. 22, 1955, by the Department of State and President Eisenhower's memorandum of that date to the Secretary of the Treasury; ibid., Sept. 5, 1955, p. 397. 2 20 Fed. Reg. 5379; Department of State Bulletin, Aug. 8, 1955, pp. 226–231. 3 TIAS 3438; 6 UST 5833.

• General Agreement on Tariffs and Trade-—Analysis of Protocol (including schedules) for Accession of Japan-Analysis of Renegotiations of Certain Tariff Concessions (Department of State publication 5881; 1955).

TIAS 1703; 61 Stat., pt. 4, p. 3699.

59. STRENGTHENING THE DEFENSE CAPACITY OF JAPAN: Joint Statement by the Secretary of State and the Japanese Foreign Minister, August 31, 1955 1

Mamoru Shigemitsu, Deputy Prime Minister and Foreign Minister of Japan, has concluded three days of discussions with Secretary of State John Foster Dulles and other high United States officials.

The Foreign Minister was accompanied among others by Ichiro Kono, Minister of Agriculture and Forestry; Nobusuke Kishi, Secretary-General of the Japan Democratic Party; Ambassador to the United States Sadao Iguchi; Ambassador Toshikazu Kase, Japan's Permanent Observer to the United Nations; and Takizo Matsumoto, Deputy Chief Cabinet Secretary.

American officials in addition to the Secretary of State who met with the Foreign Minister and members of his party included: Under Secretary of State Herbert Hoover, Jr.; Deputy Secretary of Defense Reuben B. Robertson, Jr.; Chairman of the Joint Chiefs of Staff Admiral Arthur W. Radford; Mr. John Hollister, Director of the International Cooperation Administration; Deputy Under Secretary of State Robert Murphy; Assistant Secretary of Defense Gordon Gray; Ambassador to Japan John M. Allison; and Acting Assistant Secretary of State for Far Eastern Affairs William J. Sebald.

A free and frank exchange of views from the global viewpoint was held concerning more recent international developments, notably the implications of the "Summit" meeting at Geneva, the present United Nations discussions on disarmament, and the impending Conference of Foreign Ministers at Geneva.3 The Far Eastern situation was also discussed. Secretary Dulles explained the policy of the United States to support freedom firmly while exploring patiently every avenue which may lead to the enhancement of general peace. Foreign Minister Shigemitsu drew on his experience in the Soviet Union and China in interpreting his nation's policies. The Secretary of State and the Foreign Minister concurred in the view that while the immediate danger of major war had perhaps receded there still remain elements of uncertainty in the situation, particularly in the Far East, and that the continued solidarity of the free world is needed to maintain improved prospects of peace.

The Foreign Minister expressed Japan's resolve to maintain cooperation with the United States and the free world as the cornerstone of its foreign policy. In this connection the Secretary of State and the Foreign Minister, recognizing the desirability of closer cooperation between their countries for the purpose of securing stability and enduring peace in the Far East, agreed that consultations between their Governments should continue on various problems of mutual

concern.

1 Department of State Bulletin, Sept. 12, 1955, pp. 419-420.

2 See The Geneva Conference of Heads of Government, July 18-23, 1955 (Department of State publication 6046; 1955); and supra, pp. 111-114, 1887-1897 and 2005-2016, and infra, pp. 2841-2843.

See The Geneva Meeting of Foreign Ministers, October 27-November 16, 1955 (Department of State publication 6156; 1955); and supra, pp. 115–122, 1897– 1927 and 2018-2039, infra, pp. 2844-2850.

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