=e ' Page2__of telegram to___________AMEMBASSY a $2 million perhaps too high somthing between $1 and $2 million might be satis- factory although anything over §1 million may require action by Congress which could lead to bad reaction US public opinion, Press report Jkazeki paid Japanese Government requesting $6 million resulted from misinterpreiation what he said to Japanese press representatives here. Okazaki referred to "misunderstaniing® over Japan's 1) percent reduction in defense expenditures and said he had written Allison official letter to explain. Sssured Robertson cut dees not affect program for increase Japanese forces JFY5h, and is related only to items vhich Japan will purchase in Japmese economy and which can be purchased for about 10 percent less as result reduced prices in Jaman, No (repeat no) comment mde. Expect subject will be discussed lere later, Regard ing possible increase Japanese forces JFY55, Okezaki said while Minister Finance wanted finance whole cost through reduction J ‘panese contribution US forces he ine tended urge some reduction contribution U& forces coupled with increase in Japanese defense appropriations, Regarding war criminals, Okazaki said they growing restless andhave sympathy all Japanese people, including prison police, Difficulties avoided by hope of ultimte release although situation potentially difficult. /erstippine md Nationalist China grant amnesty all war criminals under their jurisdiction, Yoshida will probably bring up this problem although Japanese Governmert recognizes US doing better than British and Dutch since prisoners being paroled under ow system although not as fast as Japanese Government and people desire, Robertson said our Board of Clemency and Parole working hard on problem and we want expedite process without destroying whole basis for. trialss Fur ther important consideration need parallel closely