in getting Washington's approval to make an offer along the
lines suggested.
;
6. Okazaki's estimate of 300 million yen corresponded
with the Foreign Office working level statement yesterday that
only items in paragraphs 2a, 2b, 2c were direct losses, These
total 286,039,528 yen or $794,554 U.S., and conform with the
estimate in the Department's communication which just arrived,
The Japanese Government now seems convinced the incident should
be settled, and quickly.
If I can be authorized to work out
compensation at between $500,000 and $1,000,000, I believe we
can dispose of the affair expeditiously, and without prolonged
litigation or even resort to formal arbitration, costs of which
might be considerably higher than the sum involved, with delays
phat wpurd be politically most injurious; I doubt. we can expect
o do
better,
7. I request urgent authorization to negotiate settlement
in principle within the range of paragraph 5 amounts by May 31..
ALLISON