Memorandum of Conversation with Secretary of State Dean Acheson, Ambassador of Japan Eikichi Araki, Ambassador Juichi Tsushima, and Kenneth T. Young

1213 3/5 DEPARTMENT OF STATE 1013 Memorandum of Conversation 305 DATE: October 3, 1952 SUBJECT: Japanese Financial and Political Matters. PARTICIPANTS: The Secretary Ambassador Eikichi Araki, Embassy of Japan Ambassador Juichi Tsuehima, Advisor tb the Foreign Office on Financial Matters Mr. Kenneth T. Young, Jr., Director, Office of Northeast COPIES TO: Asian Affairs s/s (2) RE FE NA/E - Mr. Hemmendinger NA (3) NA/J - Mrs. Dunning PSA BNA UNA u. s. GOVERNMENT PRINTING OFFICE 16-61120-1 Ambassador Araki came in to see me today at 2:30 to introduce Ambassador Tsushima, who has just concluded negotiations in New York between the Japanese Government and the United States and British bondholders. Ambassador Tsushima mentioned his letter to me of July 10, which I told him I had been very glad to receive and which I had since answered. He remarked that the negotiations had been concluded satis- factorily with the United States and British bondholders but that he had not reached final agreement with the French bondholders. In response to my question, he indicated that the difficulty with the French was a real one, since they desired the settlement to be in gold, but he believed that a compromise could be worked out in time. I congratulated him on the successful conclusion of his negotiations and noted that it would be helpful in establishing the credit of Japan. Ambassador Tsushima left with me the reports of his agreements on the private debt settlement, as well as other relevant documents. Ambassador Tsushima informed me that Prime Minister Yoshida had asked him to undertake negotiations on reparations, following his return to Japan. He explained that he had already held preliminary discussions W ith the Philippine representatives in Manila early this year but that the Philippine Government had presented a claim for $8 hillion which the Japanese Government could not accept. He also had held discussions with an Indonesian delegation last December and DECLASSIFIED E. O. 11652, Sec. 3(E) and 5(D) or (E) January, Dept. of State letter, 10-26-26 By NLT- He 9 NARS Date 11.29.76 CONPIDANI TAL