-2- 79, July 10, 2 p.m., from Tokyo. go to the US in September. Okazaki said he fully understood and agreed on the undesirability of having to bring the matter before Congress. He asked me to give him several days in which to discuss the problem and promised to talk to me agsin early next week. He did say that he thought if compensation were to be made on ex gratia basis that it should be in round figures such as 700,000, 800,000 or best of all $1 million. He thought that if figures such as $750,000 or $850,000 were involved it would create necessity for explaining in detail how the figure was reached and this would take away from overall effect of payment. . This morning's press carries brief story quoting informed sources as saying that US has offered $1 million compensation but that Japanese are holding out for approximately 53 million. I telephoned Okazaki and told him I was most distressed to see public mention of any figure and pointed out that as he knew, US had not made offer of million dollars. He said he was quite embarrassed and professed not to know source of story. He told me Foreign Office would hold press conference and in referring to press stcries would say that no definite figure had yet been mentioned in our talks. He again said he hoped to be able to talk to me more definitely next week about final government reection to our offer. Press has at same time quoted statements made at Upper House Fisheries Committee meeting July 7 by Minister of State Ando. Ando is reported to have said that Okazaki has been informed of opinion of Fisheries Committees of the two Houses as well as to Ando that in obtaining compensation for injuries he should not pursue "weak-kneed" foreign policy. He is further quoted as saying "I want the US to compensate us for 'semi-direct injuries' too." ALLISON MAM/S | ; | te a K ; L. o hive Evorzy Comm.ssio n Division of E‘a'ozy & had cin i RECEIVED ° . ot AR, 1 JUL 13 42954 ON aae « WERE esas orvbe