NSDD 74 Visit to the United States of Prime Minister Nakasone

SECRET 2 SECRET -- We should be prepared to follow-up on the Prime Minister's expressed interest in Alaskan oil exports to Japan by actively exploring what reciprocal measures Japan may be willing to take which, if we so decided, might then assist us in overcoming legislative and domestic obstacles. (S) Defense Relationship -- We should stress the importance we attach to our defense relationships. (C) -- We should express our satisfaction with the recent reformulation of Japanese policy governing defense technology transfers and our interest in facilitating and simplifying the technical arrangements. (S) -- Taking favorable note of the Nakasone government's recent increase in defense spending, we should press them for a clear commitment to undertake the improvements necessary to implement the agreed "division of labor" between our countries, within a reasonable period of time. (S) -- We should reaffirm our desire to continue close consultations on force plans and programs and the progress made in attaining our common objectives. (S) During this visit, it is essential that we navigate a careful path. We wish to reinforce the positive position taken by Prime Minister Nakasone in making Japan's relationship with the United States the centerpiece of his foreign policy. At the same time, it is necessary that we stem the strong and growing protectionist sentiment in- the Congress which, if not contained, risks overtaking our concerted efforts to achieve significant and measurable progress in resolving our serious bilateral disputes. Failure to do so could also contribute to an unraveling of the international trading system. This strategy requires that we privately insist on Japan making policy and legislative adjustments. We must maintain sufficient pressure on the Japanese until these adjustments in key trade and defense areas are achieved. Publicly, we should continue to support the Prime Minister and those forces in Japan's public and private sectors that make these difficult policy initiatives possible. (S) The themes. to be pursued in regard to trade and defense have been spelled.out in some detail in order to assufe that all officials follow a common line in regard to these key bilateral - issues. In the course of the visit we should also dicuss with Nakasone major regional and global issues of common interest, where we want to enlist Japan's support and cooperation. In this connection, it is anticipated that special attention will be given to foreign economic and debt assistance, East-West SECREY OBCERT SECRET CV / of 13 copies CHRON FILE