ENCLOSURE IIT
DEPARTMENT
OF STATE
May 31,
FROM:
Tokyo
TO
Secretary of State
:
1954
I discussed again with Okazaki this morning the compen:
sation question and mentioned some of the considerations set forth.
in the Department's communication, Okazaki said that over the
week end he had talked with Deputy Prime Minister, Finance Minister, and Minister of State Ando, who is in direct charge of this
whole problem, All had agreed the best long-term interests of
Japan were early settlement on a reasonable basis and that no
attempt should be made by the Japanese Government to squeeze out ©
of the Bikini affair everything possible. However, Okazaki said
he had been surprised at the firm opinion held by the Ministers
on what the amount of compensation should be. They were all
agreed that from the Japanese psychological point of view the
figure of 200,000,000 yen had great importance. The difference
between 180,000,000 yen ($500,000) and 210,000,000 yen was far
more than actual figures, Therefore, any payment less than
200,000,000 yen would not solve the political-psychological problem. In addition, the Ministers concerned believed that the
total direct damages amounted approximately to 300,000,000 yen,
Okazaki said he would do everything in his power to obtain agreement in the neighborhood of 200,000,000 yen, but he was certain
payment of 300,000,000 yen ($833,333) would completely settle the
matter to everyone's satisfaction. The local press is already
speaking in terms of a billion yen settlement although Okazaki
said the Foreign Office is doing everything possible to keep any
figure out of the press.
In my considered opinion, this is primarily political, not
a legal problem. An ex gratia payment of 300,000,000 yen should
not be completely ruled out. Early payment of such an amount
.
would not only go far to restore good feeling toward the United
States, but it would, I am convinced, place the Japanese Government officials under moral obligation to the United States which
they would not soon forget.
An ex gratia payment which did not
in any way refer to the itemized accounting could not be used to
create undesirable precedents, If we say we will only pay direct
damages and that these must all be strictly accounted for, we
will be haggling with the Japanese for many months, We would
probably end up by paying only slightly less than 300,000,000 yen
now recommended and we would have done much in the process to
exacerbate Japanese-American relations.
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Enetananva TTT