ENCLOSURE II
\
DEPARTMENT OF STATE
May 29, 1954
FROM:
Secretary of State
TO
American Embassy, Tokyo
:
The amounts cited in your paragraphs 2a, b and c include
some questionable items such as losses from detours to fishing
areas, and compensation for the boat which the JapaneseGovern-.
ment has bought and retained for its own purposes,
Difficult
legal questions are involved, since we do not wish to create
precedents which will later be used against us in other instances
of claims for compensation.
In addition, thinking here on the
basis of earlier information from Tokyo had focused on approxi-
mately $150,000 - $300,000 as the first estimate of direct damages.
This will be impossible to give you authorization reques-~ted by May 31.
It is suggested that you discuss the problem again
with Okazaki and tell him you will take it up in Washington upon
your return.
It is hoped that any discussions of a figure do
not go much, if any, above $500,000, since on the basis of information available here it will be difficult to present justifica-
tion to Congress for direct damages above that amount.
MURPHY