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AMEMBASSY TOKYO (PRIORITY)

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1, You are hereby authorized negotiate but not (repeat not)

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sign agreement with Japan in settlemnt all Jepanese claims arising

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favorable terms obtainable, and should not in any case exceed one

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million US dollars,

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Settlement should be ex gratia, on most

2. For yous informtion enly, President on Jum 29 determined

ne more than one million dollars ef MSP funds may be wed pursuant
Section 513(b) for this purpose. Because of technicalities connected
end USYY cannot at present authorize you sign agreenent but expect be

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