The Asahi, in a frontpage article, summed up the results of the talks between U.S. Secretary of State KISSINGER and Japanese Government leaders, with the captions pointing out "Brake on Approach to Arab Countries; Secretary of State KISSINGER Requests Japan to 'Watch Quietly'." The report said:

U.S.-Japan consultations over the Middle East problem, which were held with the visit here by U.S. Secretary of State KISSINGER, were fully completed on the 15th. Following this, the Government has decided to clarify that it will continue diplomatic efforts for the securing of oil resources, as well as to express its hopes for a peaceful settlement of the Middle East conflict, in a statement to be issued in the name of Chief Cabinet Secretary NIKAIDO, which will be issued at the same time as the announcing of the general outline for emergency oil countermeasures, to be decided on, on the 16th.

This statement will not directly touch upon the U.N. Security Council's Resolution 242 of 1967, concerning a Middle East peace. However, by making clear the wish for a "peaceful and just settlement, at the earliest possible time," it will probably aim at conveying our country's "sincerity" to the Arab oil-producing countries, too.

It seems that Secretary of State KISSINGER strongly called for our country's "watching quietly for some time to come," through his talks with Prime Minister TANAKA and other leaders. The Government had been thinking of making clear a more "Arab-inclined" diplomatic posture than in the past, in the diplomatic field, to be pushed in parallel with internal measures, in order to secure a stable supply of oil from the Arab countries. However, there seems to have been the additional consideration of U.S.-affiliated international oil capital, which has overwhelming power in the field of oil distribution, in addition to the importance attached to U.S.-Japan co-operation, and it seems that the Government has decided to propose "diplomatic efforts," using restrained expressions, which will be in line with the U.S. side's request, at least for the time being.

However, separately from this, the view is strong within the Foreign Ministry that it would be a wise policy to clarify to the Arab side the view that the withdrawal of the Israeli forces in accordance with the U.N. Security Council's Resolution 242 is the premise for peace, and it is thought that study will continue to be made on the question of in what form this can be done.

At the series of talks on the 15th, between Secretary of State KISSINGER and Prime Minister TANAKA, Finance Minister AICHI and ITI Minister NAKASONE, it is said that the Japanese side sought the understanding of the U.S. side on the point that our country has no choice but to formulate a still more Arab-inclined posture.

It seems, however, that although Secretary of State KISSINGER said that he "understands Japan's difficult position," he sought discreet consideration on the part of our country, emphasizing the following points: (1) U.S. diplomatic efforts concerning a Middle East peace will enter the full-fledged stage from now on, and even in order to avoid exerting influence over them, it is requested that new moves by third countries, including Japan, will be withheld; and (2) in the case of Japan's taking a more Arab-inclined posture than at present, it will strongly irritate Jewish-affiliated forces in the U.S., and there is even the danger of its possibly causing a new crack once again in U.S.-Japan relations, which have been developing smoothly, since the improvement of the trade balance, in all fields, including the political, economic and trade fields.

After the series of talks between Secretary of State KISSINGER and Government leaders, the Foreign Ministry held consultations, centering on Administrative Vice Minister HOGEN and Ambassador to the U.S. YASUKAWA, on what diplomatic measures our country should take, based on the outlook for the Middle East situation, conveyed by the said Secretary of State. It seems, however, that they reached the conclusion that they will not adopt immediately a clear-cut posture inclined to the Arab side, as a result of the "order" placed by Secretary of State KISSINGER on Japan's formulating its own independent policies toward the Middle East, exerting, after all, very big effects. (Full translation)

Among other frontpage reports, the Yomiuri said that the Government may dispatch a special envoy to the Middle East, as hinted by LDP Secretary General HASHIMOTO. The report said:

LDP Secretary General HASHIMOTO stated the following at his press conference on the afternoon of the 15th: "We wish to check into dispatching a special envoy from the Government or the LDP for the purpose of not only settling the immediate oil crisis but also promoting the strengthening of (lasting) relations with the Arab nations. In the case of dispatch from the Party, we wish to take formal Party procedures and make it sufficiently expressing respect." Thus, he hinted at formation of a large-scale mission to visit the Middle East. (Full translation)

The Mainichi carried a frontpage report captioned "Foreign Minister Explains Talks with US Secretary of State KISSINGER to LDP." The report said:

Foreign Minister OHIRA gave a report for about 20 minutes centering on the oil problem, with regard to his talks with US Secretary of State KISSINGER, to the LDP officers, including Secretary General HASHIMOTO, at the LDP Headquarters on the afternoon of the 15th. According to Secretary General HASHIMOTO, the Foreign Minister said that he requested, "Since the United States holds the greater part of international oil capital, it is requested you convey Japan's position fully [to them], if there is an opportunity," and that Secretary KISSINGER showed understanding...(Full translation)

The Tokyo Shimbun, in a frontpage report captioned "'November Reshuffle' to Be Shelved," said:

With the Government and the LDP having started exerting all their energies in coping with the oil crisis and taking price counter-policies, the intra-Party moves awaiting a "November reshuffle," which was a focal point of the political situation, have generally disappeared, and the observation is growing strong that the reshuffle will be shelved, after all. For Prime Minister TANAKA, the supreme task is to draw up comprehensive counter-policies for oil and prices by the end of this month at the latest, and it is extremely difficult to set his hands to a personnel reshuffle of the Party and the Cabinet during this month. At the general meetings of the FUKUDA, MIKI, and NAKASONE Factions, held on the 14th and the 15th, the assertions calling for "oil and price counter-policies under an all-Party setup" were the dominant opinions. Reflecting these, negative arguments are strong among influential leaders within the Cabinet and among LDP leader sources, to the effect that "This is no longer a situation for carrying out a personnel reshuffle." The matter of concern within the Party is how the Prime Minister will judge this atmosphere. The Prime Minister, on the evening of the 15th, spoke to the newsmen watching TANAKA, saying, "You need not watch TANAKA any longer. Give yourself a rest." This has been taken as a hint at his giving up a "November reshuffle," virtually.

The Tokyo Shimbun carried a page-two report, with the captions reading: "Government to Give Up Rapid Change in Policy toward Middle East; To Watch Development of US Efforts; Relations with Arab Side to Be Strengthened; Through Increase in Aid, Etc., for Present." The report said: As a result of the talks between US Secretary of State KISSINGER and Prime Minister TANAKA, Foreign Minister OHIRA, and other Government leaders, held on Nov. 14 and 15, the Government has decided to watch the development of US efforts for complete settlement of the Middle East dispute, for the time being, and to give up the planned big change in its foreign policy, for example, in the form of rapidly changing our country's policy toward the Middle East in the direction of "supporting the Arab side." However, in view of the explanations, given by Secretary of State KISSINGER, it has become certain that the oil-supply uneasiness and the sharp rising of oil prices will still continue even after the settlement of the Middle East dispute. From a long-range viewpoint, therefore, the Government plans to tackle positively the strengthening of relations with the Arab side, such as a large-scale increase in technical aid to the various Arab countries and the dispatch of a special envoy to these countries.

When explanations by Government-connected persons are considered together, it is said that Secretary of State KISSINGER, at his series of talks with Government leaders, stated that prospects for settlement of the Middle East dispute are not necessarily dark, and that he also submitted a strong request, saying that "I hope that Japan will push its policy toward the Middle East after understanding the US position." This is regarded as an expression of the US Government's uneasiness as to the observation that in order to tide over its oil crisis, our country may rapidly adopt pro-Arab and anti-Israeli policies.

In this connection, on the Japanese side, Foreign Minister OHIRA, at his press conference, held on Nov. 15, stated that "the keynote of US-Japan co-operation will remain unchanged." At the press conference held that evening, Foreign Vice-Minister HOGEN also said, "The basis of our country's policy toward the Middle East will remain unchanged." When viewed from such an attitude of the Japanese side, it is judged that the Government has solidified its stand of not adopting any pro-Arab and anti-Israeli policies, which will obstruct America's efforts for the purpose of settling the Middle East dispute.

However, it is observed that it will take at least six months to one year to secure complete settlement of the Middle East dispute. Moreover, there are no prospects that the amounts of oil supply by various Arab countries will rapidly increase, even if the dispute is settled. Therefore, the Government thinks it necessary for our country to establish closer relations with the various Arab countries than at present. In concrete terms, efforts will probably be made to improve relations with the oil-producing countries and to promote their understanding toward our country, through a large-scale increase in technical aid to the Arab countries, the dispatch of a special envoy to these countries, and the expansion and strengthening of the Embassies there.

The Nihon Keizai frontpaged a report under the captions "Possibility of Dispatching Special Envoy to Arab Countries Becomes Stronger; 'Not to Stint Efforts': ITI Minister." The report said: In order to tide over the oil crisis, which is becoming more serious, due to the Middle East dispute, the Government is studying a plan to dispatch a Cabinet member-level Government special envoy to the various Arab countries. In this connection, ITI Minister NAKASONE, at a press conference following the joint meeting of all Cabinet Ministers and LDP leaders on the economization of oil, held on Nov. 15, clarified an extremely forward-looking attitude, saying that "if a visit to the Middle East is useful, I will not stint such efforts." At present, there is also the view within the Government that the time is still unripe for the dispatch of a special envoy. However, the problem of dispatching a special envoy is also expected to become a subject matter for discussions at the Cabinet meeting, slated for the 16th. The possibility has become stronger that the planned dispatch of a Government special envoy will be realized in the near future, due to the fact that at this time, ITI Minister NAKASONE has taken a forward-looking posture.

In regard to the problem of dispatching a special envoy, a cautious argument has hitherto been prevalent mainly in the Foreign Ministry. The reason behind this argument is that it is extremely doubtful how the dispatching of a Cabinet member-level special envoy will benefit our country. At his press conference, held that day, ITI Minister NAKASONE also emphasized, "This point must be studied sufficiently."

However, ITI Minister NAKASONE, who definitely opposed the proposed dispatch of a special envoy at the press conference, held earlier, by saying that "it will be useless to plunge into the whirlwinds of the War," has rapidly shifted to a forward-looking attitude. The reason for this seems to be that through US Secretary of State KISSINGER's visit to Japan this time, the Government has generally obtained definite prospects as to the Middle East dispute, and has strengthened its view that the dispatching of a special envoy will be effective. Moreover, from the standpoint of surmounting the oil crisis, voices calling for the strengthening of diplomatic efforts, including the dispatch of a special envoy, are becoming stronger even in the LDP and business circles. It seems that there is also working the political judgment that it is necessary to respond to such expectations.

On the other hand, the Foreign Ministry, which has hitherto regarded the direction for diplomatic efforts to tide over the oil crisis as a task after Secretary of State KISSINGER's visit to Japan, is also entering the stage of conducting full-scale study on the problem of dispatching a special envoy, in view of the fact that the Secretary of State has completed his schedule for his visit to Japan. Moreover, in connection with the fact that domestic measures for coping with the oil crisis will be all clarified at the Cabinet meeting, slated for the 16th, the future focal point is about to shift to the field of oil diplomacy. Thus, the atmosphere is mounting gradually that the planned dispatch of a special envoy will be realized, as a "star" plan with regard to diplomatic efforts. (Full translation)

However, in regard to the planned dispatch of a special envoy, even if a special envoy is dispatched immediately, it cannot be expected to achieve very satisfactory results, in view of the present strong posture of the Arab side. For this reason, the Government thinks it necessary to ascertain the situation carefully as to the timing for dispatching a special envoy. The Government has also decided to study the problem of the Foreign Minister's personal visit to the Arab countries, after watching the development of efforts for the purpose of settling the dispute, for some time, and to give up the Foreign Minister's proposed visit to these countries, for the present.

With regard to such inactive "oil diplomacy" by the Government, it is certain that strong criticism will arise, not only from the Opposition Parties but also even from industrial circles, to the effect that "the Government should push more positive diplomacy toward the Arab side, thus tiding over the oil crisis." (Full translation)

assured, If North and South Korea implement the plan, the
Communique with the backing of the UN.

The **Sankei**, in its first editorial titled "Financial Deficits of National Railways and Construction of New Trunk Lines," said that the report on the business records of the National Railways in fiscal 1972 has made it clear that the maintenance of local lines is still the most important cause for the financial difficulties of the National Railways, and that the construction of new trunk lines has produced a profound influence on National Railway finances. The paper said it is certain that the construction of new trunk lines will make it difficult to maintain the existing lines, which are running parallel with the new lines, on a paying basis. The paper said it is not permissible for the National Railways to build a network of new trunk lines without giving a solution to this problem. In its second editorial titled "Joint Opposition Struggles Proved Difficult by JCP's Criticism Against Other Parties," the **Sankei** noted that the JCP criticized Komeito as a Party essentially the same as the LDP in character. The paper also pointed out that the Opposition Parties, while quarreling with one another on the national level, are fighting jointly in some local elections. The paper said such instances will give the people the impression that the Opposition Parties are acting only according to their own convenience, case by case.

["The Asahi, on page two, carried the announcements by the Japanese and the U.S. sides on the TANAKA-KISSINGER talks held yesterday. The report stated as follows, under the captions: \"Both Sides Make Announcements on 'TANAKA-KISSINGER Talks'; Requested Efforts Concerning Middle East; Statement by Chief Cabinet Secretary NIKAIDO; Consultations on Oil, in the Future, Too; U.S. State Department Spokesman's Press Conference\":", "At a press conference on the afternoon of the 15th, Chief Cabinet Secretary NIKAIDO said, in gist, as follows, concerning the talks held between Prime Minister TANAKA and U.S. Secretary of State KISSINGER that day:", "1. Frank exchange of views was held, centering on the Middle East problem. It is the U.S., which holds the key to the peaceful settlement of the Middle East conflict, and therefore, we requested continued U.S. efforts for a fundamental settlement at an early date. In response to this, Secretary of State KISSINGER also said that utmost efforts will be made with that intention, and that he also thinks that the U.S. holds the key.", "2. Prime Minister TANAKA requested as follows: \"For Japan, which relies almost completely on imports for oil, the effects which oil has on the economy and the people's livelihood are very grave, and it attaches expectations on U.S. efforts for early settlement. The basic keynote between Japan and the U.S. will not be changed by the oil problem, but it is hoped that the actual situation in Japan will be fully understood.\"", "3. In response to these assertions of the Japanese side, Secretary of State KISSINGER also stated his views. However, he expressed the wish that they will not be announced publicly, because they have not yet been reported to President NIXON.", "* * * * * * * * * * * * * * *

Cabinet Meeting Today; To Prevent Uncalled-for Price Raising, Promotion of Development of New Energy" (Nihon Keizai); "Overall Countermeasures to Save Oil; Government to Decide on Emergency Measures Outline Today; Plans 'Livelihood Stabilization Law'; In Conjunction with Curbing of Consumption" (Mainichi); "To Include 'Commodity Prices Control' in Oil Countermeasures; Cabinet Members' Conference Every Day; General Outline to Be Decided Today; To Prevent Uncalled-for Price Raising; 'General Mobilization' of Anti-Monopoly Law, Etc." (Yomiuri); "To Formulate 'National Economy Stabilization Law'; General Outline of Oil Countermeasures Today; Government to Devote All-out Efforts for Commodity Prices Countermeasures; To Include Price Freezing Ordinance; Surcharge on Price Raising, Taking Advantage of Situation" (Sankei); and "Control Coloring to Oil Countermeasures; To Contain Price Freezing; To Absorb Unjust Profits by Taxation; General Outline to Be Decided at Cabinet Meeting Today; Revisions Made in Commodity Prices Countermeasures at Prime Minister's Instructions" (Tokyo Shimbun).

The Asahi's lead story took up the Government's new plan for the calming down of the soaring land prices, with the aim of curbing inflation, and the captions noted: "Large-Scale of Conversion of Farmland; For Use for Plants and Housing; Government Decision; 300,000 Hectares During Next Fiscal Year; Shift of Policy to Cool Land Prices."

The Asahi, on page two, carried the announcements by the Japanese and the U.S. sides on the TANAKA-KISSINGER talks held yesterday. The report stated as follows, under the captions: "Both Sides Make Announcements on 'TANAKA-KISSINGER Talks'; Requested Efforts Concerning Middle East; Statement by Chief Cabinet Secretary NIKAIIDO; Consultations on Oil, in the Future, Too; U.S. State Department Spokesman's Press Conference":

At a press conference on the afternoon of the 15th, Chief Cabinet Secretary NIKAIIDO said, in gist, as follows, concerning the talks held between Prime Minister TANAKA and U.S. Secretary of State KISSINGER that day:

2. Prime Minister TANAKA requested as follows: "For Japan, which relies almost completely on imports for oil, the effects which oil has on the economy and the people's livelihood are very grave, and it attaches expectations on U.S. efforts for early settlement. The basic keynote between Japan and the U.S. will not be changed by the oil problem, but it is hoped that the actual situation in Japan will be fully understood."

**************

U.S. State Department spokesman MCCLOSKY, who is accompanying Secretary of State KISSINGER, held a press conference at a hotel in Tokyo on the 15th, and stated, in gist, as follows, concerning Secretary of State

Among inside-page reports, the Yomiuri dealt with yesterday's talks between ITI Minister NAKASONE and US Secretary of State KISSINGER, carrying the captions "Toward Development of New Energy; Japan-US Agreement Even As Early As within This Year -- NAKASONE-KISSINGER Talks." The report said:

ITI Minister NAKASONE held talks with US Secretary of State KISSINGER at the Hotel Okura in Akasaka, Tokyo, for about 35 minutes from 1:30 p.m. At the talks, ITI Minister NAKASONE requested an early settlement of the Middle East dispute and, giving detailed explanations on the effects the oil crisis will have upon our country's economy, politics, and society, sought co-operation. The two agreed to co-operate with each other in oil resources and development of new energy.

Especially, ITI Minister NAKASONE seems to have emphasized the importance of stable supply of oil, saying that the oil crisis will have serious effects upon the political situation because of the stagnation of the Japanese economy and that it will seriously affect also the Japan-US Security Treaty structure and the US Forces' Far Eastern strategy.

At the outset of the talks, ITI Minister NAKASONE requested that "the US Government make utmost efforts to settle the Middle East dispute as early as possible." In reply, Secretary KISSINGER agreed and said, "We need to make efforts urgently to settle the dispute."

The ITI Minister appealed, "If the oil crisis is prolonged, it will have delicate effects even upon the political situation, and the TANAKA Cabinet will face great difficulties." This is a hint that because of a political change in our country, it may possibly affect even the Japan-US Security Treaty structure and the US Forces' Far Eastern strategy. To prevent this, he seems to have requested that stable supply of oil be secured at the earliest possible date.

With regard to Japan-US resources development agreed between the two, the noteworthy point is that they decided to realize signing even as early as within this year of a "Japan-US Agreement Concerning Research and Development of Energy" for which talks have been promoted between the two countries especially for the purpose of developing new energy. This Agreement is aimed at exchanging information and technicians for the development of solar energy, subterranean heat, compound natural gas, hydrogen energy, etc. (Full translation)

for a bold policy change toward giving priority to welfare in the true
sense of the term, and said, "The view that a misfortune should be turned
into a blessing is necessary." (Full translation)

Asahi Evening News 11/16/73 page 1

—Cabinet Reshuffle Called Off?—

# Kissinger Applies Brake On Japan's Pro-Arab Move

Following a round of talks with U.S. Secretary of State Henry A. Kissinger, the Tanaka Government apparently decided Thursday to give up its plan to manifest a clearer pro-Arab diplomatic posture than in the past.

Such a posture might have been expressed in a statement being issued by Chief Cabinet Secretary Susumu Nikaido following the formal adoption of an emergency oil conservation program at Friday morning's Cabinet meeting.

After the talks with Dr. Kissinger, however, Friday's

(Related stories on Page 3)

Nikaido statement was expected to be toned down, expressing hopes for a speedy and fair solution to the Middle East conflict and saying that Japan will continue diplomatic efforts to secure oil supplies.

Prime Minister Tanaka and other Japanese Government leaders, in their meetings with Dr. Kissinger, reportedly sought a U.S. understanding of Japan's need to take a pro-Arab stand because of the oil pinch.

In response, however, Mr. Kissinger, while expressing sympathy to Japan's difficult position, apparently called for

restraints by Japan and other third countries in making new overtures to the Arabs so that U.S. diplomatic efforts on a Middle East peace will not be hindered.

Dr. Kissinger was also believed to have warned that a clearer Japanese posture in favor of the Arabs would provoke the Jews in America and cause frictions again in improving Japan-U.S. political and economic ties.

A by-product of Mr. Kissinger's visit to Tokyo can be the cancellation of the planned reshuffle of the Tanaka Cabinet and executives of the ruling Liberal-Democratic Party.

Because the Tanaka-Kissinger meeting did not produce the results Tokyo had hoped for, LDP factional leaders came out in favor of the reshuffle plan being scrapped, saying that efforts to deal with the oil crisis and galloping inflation should come before any Cabinet shakeup.

4

## ASAHI EVENING NEWS

SATURDAY, NOVEMBER 17, 1973

### Sino-American Ties

The U.S.-China joint communique bearing on the results of U.S. Secretary of State Henry A. Kissinger's latest trip to Peking was made public Wednesday night.

Contrary to the opinions voiced by some observers, it appears that no epoch-making advances were achieved toward the establishment of full diplomatic relations between Washington and Peking.

Yet, it would be safe to conclude that the latest joint communique contains no indication of a change—despite Watergate and the Middle East war—in the close relationship that has been established between the United States and China.

All sorts of observations are being made on the substance of the views exchanged between Mr. Kissinger and the Chinese leaders during his five-day Peking visit. For example, the U.S. Secretary of State conceivably gave an explanation of the Nixon-Brezhnev summit talks in June and the Washington-Moscow agreement on the prevention of nuclear wars. And it could be that Chinese Premier Chou En-lai explained to Mr. Kissinger Peking's views concerning the present state of Sino-Soviet relations, including the bilateral Moscow-Peking border negotiations.

Inasmuch as China, in regard to the latest Middle East cease-fire, had criticized the United Nations Security Council stop-fire resolution as an attempt to enforce a settlement from above by the two superpowers—the United States and the Soviet Union—and refused to participate in the Security Council voting, it is quite possible that the Kissinger-Chou meetings touched on the Mideast problem. It is also easy to imagine that the two leaders discussed the Cambodian and Korean problems.

Thus, it could even be said that the major significance of the talks Mr. Kissinger had with the top Chinese leaders was left out of the communique.

At this juncture, our attention is drawn to the passage in the joint communique that states that the United States and China will "engage in concrete consultations of mutual concern" without "negotiating on behalf of third parties." In other words, both sides agreed that big powers, such as Washington and Peking, will not attempt to settle any international problem by acting as a proxy substituting for another country—for example, trying to settle the Cambodian problem by having a big power represent Cambodia. On this point, it can be said that the Chinese leaders adhered to a position they had consistently been arguing for.

As for its broad content, however, Wednesday's joint communique not only was restricted to bilateral relations between the U.S. and China but also did not go beyond a reconfirmation of the mutual pledge made in the 1972 Shanghai communique issued in the wake of President Nixon's dramatic journey to Peking. For example, the latest communique reiterated the five principles of peaceful coexistence, coexistence to efforts to seek hegemony, the importance of maintaining bilateral contact at authoritative levels and the expanding of exchanges of experts and artists and mutual trade, among others.

Yet, the point that must not be overlooked is the fact that Sino-American relations have been, ever since Mr. Nixon's trip to Peking, making steady progress in line with the pledges made in the 1972 Shanghai communique.

For example, when Mr. Kissinger visited Peking in February this year, agreement was reached on establishing liaison offices in the two capitals. The offices have already been opened and are, for all practical purposes, functioning as embassies. And Wednesday's communique states that agreement has been reached on further expanding the scope of activities of the Peking and Washington liaison offices.

But the establishing of formal diplomatic relations between the two countries remains difficult unless the Taiwan problem is solved. On this point, the latest communique reconfirmed Peking's argument that "normalization of relations between China and the United States can be realized only on the basis of confirming the principle of one China."

As far as Washington's attitude vis-a-vis the Taiwan problem is concerned, Mr. Kissinger's latest talks in Peking did not result in any major steps beyond the line clarified in the 1972 Shanghai communique. Yet, on the very same day that the latest communique was issued, a U.S. forces spokesman in Taiwan announced that one-third of the American forces stationed there will be pulled out by the end of this year.

The U.S. military announcement implies that Washington is acting along the lines made explicit in the Shanghai communique—that is, that the United States "will gradually reduce its military forces and installations on Taiwan." So we feel the Taiwan problem no longer poses a major roadblock in substantially improving relations between Peking and Washington.

Since 1971, Mr. Kissinger has visited Peking six times. Last year, he went to China twice, including the time he accompanied President Nixon. And his latest trip was the second one this year. This means that he has been traveling to Peking twice annually in the past few years. When we take this fact into consideration in conjunction with the agreement clarified in the latest communique that both sides will "maintain frequent contact at authoritative levels," we feel that Sino-American relations have progressed to the stage in which meetings between the top leaders of both countries can now be held regularly even in the absence of a formal normalization of diplomatic ties.

It is reported that Mr. Kissinger was accorded an exceptionally warm welcome in Peking by Chinese Communist Party Chairman Mao Tse-tung. This, too, can be interpreted as an indication that the degree of closeness between Peking and Washington is steadily increasing.

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DAILY SUMMARY OF JAPANESE PRESS

Friday, November 16, 1973

EDITORIALS

<table><tr><td>Domestic Policy and Diplomacy Necessary for Implementation of Oil Countermeasures</td><td>(Yomiuri)</td><td>1</td></tr><tr><td>Oil Crisis Urging General Check of Economic Policies</td><td>(Asahi)</td><td>2</td></tr></table>

ARTICLES

<table><tr><td>Request for Prevention of US Plane Accidents</td><td>(Yomiuri)</td><td>3</td></tr><tr><td>Development of Resources in Indonesia; LDP to Send Inspection Mission on 17th</td><td>(Nihon Keizai)</td><td>4</td></tr><tr><td>Requests Understanding for "Inclining to Arab Side"; Talks Between Prime Minister TANAKA and Secretary of State KISSINGER; U.S.-Japan Consultations to Be Continued; Prime Minister Voices Preparations for "Oil Special Envoy"</td><td>(Asahi)</td><td>5</td></tr><tr><td>Not Even a Smell of Personnel Reshuffle: Statement by Chief Cabinet Secretary</td><td>(Nihon Keizai)</td><td>6</td></tr><tr><td>Prime Minister TANAKA Confers with US Secretary of State KISSINGER; Oil Crisis; Stresses Serious Situation in Japan; Stresses Japan's Own Policy Leaning toward Arab Side?</td><td>(Sankei)</td><td>7</td></tr><tr><td>JCP Kanagawa Prefectural Committee Issues Statement for Immediate Withdrawal of Aircraft Carrier Midway</td><td>(Kanagawa Shimbun)</td><td>8</td></tr><tr><td>Consultations Centering on "Middle East"; Prime Minister TANAKA Has Talks with Secretary of State KISSINGER; Explains Difficult Position over Oil; Agreement Reached on Co-operation over Monetary Reform; AICHI-KISSINGER Talks</td><td>(Nihon Keizai)</td><td>9</td></tr><tr><td>Japan and U.S. to Continue Consultations on "Oil"; Agreement Reached at Prime Minister TANAKA-Secretary of State KISSINGER Talks; May Also Take Independent Line in Policy Toward Arab Countries: Statement by Prime Minister; "Understands Situation of Japan Well"; Also Talks with AICHI</td><td>(Yomiuri)</td><td>10</td></tr><tr><td>Appeals for Breaking Oil Crisis; Settlement of Middle East War at Earliest Possible Date -- Prime Minister Holds Talks with Secretary KISSINGER</td><td>(Tokyo Shimbun)</td><td>12</td></tr><tr><td>Concrete Co-Operation Not Promised; Increase in Oil Supply; Talks Also with Finance Minister -- US Secretary of State KISSINGER (Tokyo Shimbun)</td><td></td><td>12</td></tr><tr><td>Consultations Centering on Oil; Understanding of "Leaning toward Arabs" Requested -- Talks between Prime Minister and Secretary KISSINGER</td><td>(Mainichi)</td><td>13</td></tr></table>

(over)

EDITORIALS

YOMIURI (Full)

November 15, 1973

The Government, on the 16th, decided to formulate over-all countermeasures, centering on restrictions and economization on the consumption of oil, for the purpose of coping with the new situation in regard to the oil crisis, which was caused by the Middle East War. It is said that there will clearly appear a phenomenon, where the oil to be transported from the Persian Gulf will start to fall short of the expected amount of delivery from around the end of this month. As a matter of course, restrictions on the consumption of oil should be enforced quickly, and also, it is necessary to formulate measures to restrict the total demand, for the purpose of preventing restrictions on consumption from causing confusion. In parallel with these measures in the field of domestic policy, diplomacy as oil countermeasures should probably be developed positively.

It seems that roughly speaking, the stress of oil countermeasures, which MITI is promoting as the core, is laid on restrictions on the consumption of oil for industrial use and also on the securing of the supply of kerosene for daily use. This policy line will probably cause considerably serious confusion within industrial circles. However, probably we cannot but permit this as friction which cannot be avoided. As to the structure of our country's consumption of oil, the consumption of oil for industrial use is large and that for the people's daily use is small, because our country has quickly promoted the industrialization of the heavy and chemical industries. Moreover, at this time when the improvement of the people's welfare is the most important task, it can be said that it is natural for us to make efforts for the securing of the supply of kerosene to be used this winter.

However, in case the supply of oil to ten some-odd key industries is curtailed, ripples to be created by the decline in the production of materials will become more varied, the lower the stages of production proceed from the primary processing stage, the second processing stage and further to lower processing stages. Depending on kinds of industries and enterprises, great differences will appear as to degrees of effects to be caused on them by the curtailment of the supply of oil. In order to avoid this, a restriction structure in a pyramidal form with the material industry as the summit ought to become necessary. If measures to that extent cannot be taken in case of an emergency, it will become necessary to take relief measures toward enterprises, which will fall away, at any cost.

Basically speaking, for the purpose of restricting the consumption of oil, the formulation of restriction measures as to the total demand will become the necessary condition. Needless to say, for that purpose, it is necessary to carry over again public investments to be made in this fiscal year to the future. As regards the compilation of the next fiscal budget also, a decision should be reached on the enforcement of such measures as bold curtailment of public project expenses and a revision of the 2-trillion tax reduction plan. It seems that Prime Minister TANAKA was considering the incorporation of his Plan for Remodelling the Japanese Archipelago in the next fiscal budget on a large scale, but this will not go with the situation, where the supply of oil has to be curtailed. Also, in the field of monetary policy, we want to consider the direction of strengthening the stringency policy to be a natural course. All the more for the reason that these measures to restrict the total demand must be carried out in parallel, we want to consider the relief of enterprises, which manufacture materials really necessary for the people's livelihood.

- 2 -

Also, we want to ask for diplomatic efforts toward oil policy.
There is no guarantee that the demand for the restriction of production
by the Arab oil-producing nations and the notification issued by inter-
national oil capital in compliance with this demand for the curtailment
of the supply of oil, will not escalate further. But, in that case,
restrictions on the consumption of oil will become more difficult, and
therefore, measures will have to be taken for increasing supply. This
depends on diplomacy on a large scale. The Government recently clarified
again to the Arab side its intention of supporting the UN Security Council
Resolution of 1967, which calls for Israel's withdrawal from the occupied
areas in Arab nations. Concerning the fact that Japan is not granted
most-favored-nation treatment by the Arab side, has there not been a
fundamental defect in its diplomatic posture? It seems that the too
optimistic view by Japan toward the Arab side, formed at the Conference of the
Ambassadors Stationed in the Middle East Area in July, is an endorsement of
this situation. The strengthening of oil diplomacy is hoped for.

KS

ASAHI (Full)

November 15, 1973

The Government has firmed up its policy for launching forth upon
restrictions on oil consumption. To start with, it will develop nation-wide
campaigns for economization, and curtail oil supply to large-scale demand
industries under administrative guidance. Furthermore, it will reportedly
work for the passage of a temporary measures law bill including the
rationing of oil products and price controls, at the regular Diet session
which will be started next month.

The oil crisis this time came to the fore, with the 4th Middle East
War as an occasion. However, this cannot be dismissed as a temporary
phenomenon, which will disappear if peace is realized. It must be considered
that the Arab oil-producing countries' oil strategy, with output restrictions
combined with sharp price raises, has turned out successful, and that their
basic posture of "earning money by prices rather than by quantity" has
taken root.

The oil shortage will be linked to a shortage of energy as a whole,
and further to a shortage of all materials, with enterprises driven into
curtailed operations. Even if "quantities" are secured in the future,
with the output restrictions lifted, the rise in oil prices will have
extensive spread effects on various service charges and on commodity prices.
Even aside from this shortage, the inflation in Japan is intensifying
because of the excess in total demand. In the light of the severe internal
and external environments, the Government policy this time for restrictions
on oil consumption is rather a little too late.

What we want to emphasize here is that if only the restrictions on
oil consumption are carried out independently, separately from other
restrictions, a big crack will be caused in the Japanese economy as a
whole. Facing the oil crisis this time, US President NIXON called to the
people, "We must cut out the overly fat part of the US economy." These
words are more applicable to Japan. The difference is that the US can
aim at "building an energy self-supply structure at the end of the 1970's,"
while there is no such possibility at all in the case of our country.
We think that the Japanese Government should recognize that the pre-
condition -- "abundant, inexpensive energy" -- which has made the economic
growth policy to date possible, has collapsed, and take this opportunity
to conduct a general check of its basic policy line covering the economy,
politics, and diplomacy.

- 6 -

The TANAKA-KISSINGER talks on the 15th were also attended by Foreign Administrative Vice Minister HOGEN, Ambassador to the U.S. YASUKAWA, and American Affairs Bureau Director General OKAWARA, besides Foreign Minister OHIRA, from the Japanese side, and by Ambassador to Japan INGERSOLL and others from the U.S. side. The Prime Minister, the Foreign Minister, and the Secretary of State, standing in front of the camera lights, before the talks, smiled and shook hands with each other. The Prime Minister congratulated KISSINGER on his "assumption of the office of the Secretary of State" and expressed sympathy, saying "it must have been hot in the Arab countries, which you have been visiting, and we hope you will be able to take time here, as the weather is cool in Japan." To this, the Secretary of State replied, "It was not just the weather which was hot."

The Prime Minister then brought up the subject of "oil" immediately, saying "We are having a difficult time over the restrictions on the supply of oil. I suppose you have plenty of oil in the U.S." Talking about oil, they entered the Prime Minister's Office, where the talks were to be held. However, the Prime Minister, coming out of his Office after about one hour, looked grim and his expression was stern.

Received Impression of Prospects: Statement by Finance Minister AICHI

Finance Minister AICHI held talks for about one hour with U.S. Secretary of State KISSINGER, who is now visiting Japan, at a hotel in Tokyo, from 7:45 a.m. on the 15th. At the talks which were held in advance of the talks with Prime Minister TANAKA, the Finance Minister explained in detail the recent state of the economy in our country, especially the possibility of the Japanese economy being greatly affected by the Arab countries' reducing their oil supply. He also asked Secretary of State KISSINGER as to what impressions he received from the Middle East countries concerning the Middle East conflict and what prospects the U.S. Government has for settling it.

It seems that the Secretary of State clarified to some extent the prospects held by the U.S. Government on the Middle East question. However, at the press conference held after the talks, Finance Minister AICHI said that "it is a big problem politically, and therefore I cannot say anything from my side." He, however, clarified the impression that "it seemed to me that he has considerable confidence (regarding the outlook for a Middle East peace)."

KH

NIHON KEIZAI (Full)

November 16, 1973

Chief Cabinet Secretary NIKAIDO, at a press conference toward the evening of the 15th, made a statement negative toward a Cabinet reshuffle, saying: "The oil problem has now reached a very grave situation, and the biggest problem is how the Government will cope with it. There is not even a smell (of a Cabinet reshuffle), and it has not even been mentioned." This statement was a reply elicited by the press corps, which asked, when the Chief Cabinet Secretary said that "Prime Minister TANAKA has issued instructions to the administrative officials to boil down concrete measures for the restricting of oil, within the coming one week," whether this meant that "there will be no Cabinet reshuffle, at least during the coming one week."

KH

SANKEI (Full)

Eve., November 15, 1973

Prime Minister TANAKA Confers with US Secretary of State KISSINGER: Oil Crisis: Stresses Serious Situation in Japan; Stresses Japan's Own Policy Leaning toward Arab Side?

Visiting US Secretary of State KISSINGER called on Prime Minister TANAKA at the Prime Minister's Official Residence at 11:00 a.m. on the 15th, and exchanged views for about one hour and a half centering on the Middle East situation and the oil problem. At the meeting, Secretary KISSINGER explained the present situation of the Middle East dispute and prospects for the future, while Prime Minister TANAKA explained our country's oil situation, which has become serious due to the effects of the Middle East dispute, and also oil countermeasures being carried out with MITI taking the lead and an outlook on the Japanese economy next year.

Agreement on Continuation of Consultations

Foreign Minister OHIRA and Foreign Vice Minister HOGEN attended the conference from the Japanese side, and Ambassador to Japan INGERSOLL and Minister to Japan SHOESMITH, from the US side.

It seems that at the conference, Prime Minister TANAKA first expressed his congratulations on Secretary KISSINGER's assumption of his post as Secretary of State and his having received the Nobel Prize, and that probing views were exchanged, with subject matters having been boiled down on the Middle East and the oil problems exclusively.

Foreign Minister OHIRA, at a press conference held after the TANAKA-KISSINGER talks, said: "Secretary KISSINGER explained in detail the Middle East dispute. The Prime Minister, on the other hand, explained in detail the situation which Japan is facing now. I think that as a result of the explanations given by both sides, America's mutual understanding has been promoted." So saying, OHIRA clarified that agreement has been reached on the continuation of adequate talks on these problems between Japan and the US in the future.

Concerning the oil problem, which Japan is now facing, it is observed that the Prime Minister explained the severe situation in our country, whereby if the Arab side's "oil strategy" (curtailment in the production of oil) is to be continued as it is now, it can be predicted that the rate of our country's economic growth rate for the next fiscal year will drop to zero or less, and that he asked for the US side's co-operation, for the purpose of preventing such a situation, too.

Foreign Minister OHIRA, at his press conference held after the TANAKA-KISSINGER talks, touching upon our country's oil policy in the future in connection with the oil crisis, said: "Our policy of regarding US-Japan friendly relations as the axis remains unchanged. However, as to the question of what policy should be conducted concretely, I think that the respective Governments should think of methods."

His statement can be also understood as meaning that the Japanese side conveyed, to the US side, at the conference, its intention that, in case the oil crisis becomes protracted, the Government, on its part, cannot but lean its position at present, which is neutral toward both the Arab side and Israel, more toward the Arab side, and that the Japanese side intended to secure "understanding" toward this problem from the US side.

**************

- 7 -

- 8 -

The AICHI-KISSINGER talks were held for about one hour from 7:45 a.m. on the 15th at the Hotel Okura.

At the talks, Finance Minister AICHI explained our country's economic situation in detail, including the recent oil crisis problem. He made a request, saying, "The oil problem will cause serious effects on the Japanese economy, and therefore, we want the US side also to render co-operation."

Also, at the talks, views were exchanged on the problem concerning the reform of international currencies, the China problem, and America's policy toward the Arab side. As a result, concerning the international currency problem, agreement has been reached on positively pushing the basic line of "agreement having been reached on major points by the end of July, next year," which agreement was reached at the recent IMF Nairobi General Meeting.

KS

KANAGAWA SHIMBUN (Full)

November 14, 1973

Due to the crash of an aircraft carried on board the US aircraft carrier Midway, the JCP Kanagawa Prefectural Committee, the Yamato City Committee, the Miura Peninsula District Committee, and the Kanagawa Prefectural Assemblymen's group on the 13th issued a protest statement to the effect, "What we have feared from some time past has become a reality. It is absolutely not possible for us to permit it."

According to the statement, the said organizations demanded that the Government and Yokosuka City officials retract "approval of home-porting by the Midway" and demanded that the US Government withdraw the Midway and its carrier-borne planes immediately, and remove Atsugi Naval Air Station and Yokosuka Navy Base, on the grounds that, "If there had been an error of several minutes, the aircraft might have crashed in the vicinity of Atsugi Air Station. This makes our hair stand on end. This second accident has changed the fear of Yamato City people, Ayase City people, and Yokosuka City people into a matter of reality. We absolutely cannot permit it." Furthermore, they demanded of Governor TSUDA that, "The Government should strongly request the Japanese and US Governments to 'suspend the training of carrier-borne planes, remove (air bases) immediately, and suspend home-porting by the Midway.'"

SO

War, will have great effects upon our country's economy in the future. In reply, Secretary KISSINGER showed his view that he can understand Japan's position well, but he did not refer to concrete co-operation, such as an increase in oil supply to Japan through the majors (international oil capital). For this reason, Finance Minister AICHI requested that thorough talks be held on the oil problem at the Secretary's talks with ITI Minister NAKASONE. Secretary KISSINGER approved it.

As to a reform of the international currency system, Finance Minister AICHI said that although there are some differences of views between Japan and the United States, it is necessary to draw up a draft currency reform with an eye to the end of next July, as scheduled, after those points are boiled down. In reply, Secretary KISSINGER said that the US side, too, is prepared to tackle the work of a currency reform as scheduled and that he will convey the Japanese side's intentions to Secretary of the Treasury SHULTZ, who is the responsible person on the US side. Besides, opinions seem to have been exchanged also on the China problem, at their talks that day.

MT

MAINICHI (Full)

Eve., November 15, 1973

Visiting US Secretary of State KISSINGER held talks with Prime Minister TANAKA at the Prime Minister's Official Residence from 11:00 a.m. on the 15th and exchanged opinions for about an hour and a half, narrowing down the topics to the Middle East situation and the oil problem. The Prime Minister explained Japan's difficult situation centering on oil and, at the same time, strongly requested a peaceful, early settlement of the Middle East dispute. Secretary KISSINGER showed an understanding attitude.

Prior to this, from 7:45 a.m., Secretary KISSINGER conferred with Finance Minister AICHI for an hour at a breakfast meeting given by the Finance Minister at the Hotel Okura. They reached agreement on making Japan-US economic relations closer, to hasten settlement of the oil and international currency problems. Secretary KISSINGER will hold talks also with ITI Minister NAKASONE from 1:30 p.m. and discuss the oil problem probingly.

The talks between Prime Minister TANAKA and Secretary KISSINGER were attended by Foreign Minister OHIRA, Foreign Vice-Minister HOGEN, and Ambassador to the United States YASUKAWA from the Japanese side and by Ambassador to Japan INGERSOLL and Minister to Japan SHOESMITH from the US side. The Prime Minister, first of all, offered his congratulations on Secretary of State KISSINGER's assumption of his post and on his receiving of a Nobel Prize, and then immediately entered into talks on the Middle East problem.

Secretary KISSINGER explained the present situation of and prospects for the Middle East dispute and the oil problem. The Prime Minister stated in detail the immediate serious situation in Japan over the oil crisis. After the talks, Foreign Minister OHIRA said, at his press conference, "I think mutual understanding has progressed sufficiently on the Japanese and US explanations."

- 13 -

- 16 -

carried out with the existing laws and ordinances as the background, such as guidance for the shortening of business operation hours among entertainment enterprisers, radio and TV enterprises, and large-scale retail store enterprises, and the decreasing of the operation of planes and tourist buses, utmost efforts will be made to curb demand.

(3) In order to prevent the raising of prices, accompanying the above-mentioned administrative guidance, powerful guidance will also be given. At the same time, the basic policy for securing the proper amount of supply for fuel for ordinary household use, will be firmly maintained. Also, in order to keep the effects on medium and small enterprises and on the agricultural and fishery industries, to the minimum, guidance will be given toward oil sales enterprisers, for the securing of heavy oil for agricultural and fishery industry use. Necessary measures will be quickly studied in order to prevent the arising of serious injury from the tightening of the demand-supply relationship in daily livelihood necessities and in materials for medium and small enterprises, as a spread effect entailing the cut-back in the supply of oil.

### 4. Proposal for Emergency Legislation Concerning Oil Consumption:

Emergency legislation concerning oil consumption will be submitted to the next regular Diet session, at its very outset, in order to prevent the arising of confusion entailing a large-scale and a sudden shortage of oil, for the stabilization of the people's livelihood and for the smooth operation of the national economy.

### 5. Strengthening of Measures to Curb Total Demand:

In order to avoid such situations as the extreme tightening of demand and supply of goods and an abnormal rising of commodity prices, accompanying the slash in the supply of oil, etc., measures to curb total demand will be further strengthened. The concrete contents for this will be studied and they will be decided upon by the Cabinet, at the earliest possible time.

### 6. Efforts to Secure Oil Supply:

In parallel with the above measures, utmost efforts will be made for the securing of oil supply, also in the diplomatic field.

#### Details of Plan for Enforcement of Economizing and Slashing of Oil and Electricity Demand in Private Circles

When giving guidance to large-scale users of oil and electricity in private circles for economizing on the use of oil and electricity, in order to promote powerfully the slashing of demand for oil and electricity, to cope with the state of the reduction in the supply of oil, the following policies will be followed:

1. In order to retrench the demand for oil and electricity in private sectors, powerful guidance will be given by the respective Ministries concerned toward industries coming under their jurisdiction.

2. Besides 1, various Ministries concerned will give the following guidance in order to reduce non-urgent demand for oil and electricity:

(1) Economizing of gasoline consumption by privately-owned cars.

a. Restricting of the using of super-highways by privately-owned cars for Sunday driving for pleasure.

b. Expansion of off-limit areas for cars, and the establishment of no-car days.

c. Speed limits on super-highways.

d. Simultaneous closing of gasoline stations on Sundays.

(2) Economizing on Oil Consumption by Transportation Organs for Business Use

a. Abolition of restrictions on sharing a taxi-cab.

b. Reduction in the number of operations and cruises by tourist buses and sight-seeing ships, for pleasure purposes.

c. Reduction in plane flights, whose main purposes are tourist and pleasure trips, such as JALPAC.

(3) Slashing of Electric Power Consumption by Shortening of Business Hours

a. The moving up of the closing time for entertainment business, such as bars, cabarets, etc.

b. The moving up of the closing time of movie-houses, etc.

c. Moving up of the time for the closing of department stores and other types of stores.

(4) Shortening of Electricity-Using Time to Save Electricity

a. Shortening of telecast hours by TV stations, etc.

b. Shortening of time for using neon signs for advertising, etc.

3. Consideration will be given so that unreasonable side-effects, such as price-raising, taking advantage of the above measures, entailing the implementation of these measures, will not be caused to the people's livelihood.

KH

NIHON KEIZAI (Full)

November 15, 1973

## Foreign Ministry Comments on US-China Joint Communique

Referring to the US-China Joint Communique, which was announced on the 14th, the Foreign Ministry takes it to mean that, "This is a general, basic Joint Communique, and there is scarcely any new item." However, in view of the fact that talks between Secretary KISSINGER and Chinese leaders were held for an unprecedentedly long time, it is not conceivable that all the contents of the talks have been incorporated into the Joint Communique. So, a said Ministry source showed interest in the discussions, which lie behind it, saying, "Is it not that there are considerable discussions, which have not appeared in the Joint Communique?"

The said source also takes such views as -- (1) There are no signs that in connection with the Taiwan problem, US-China relations will make rapid progress. However, it is felt that due to Secretary KISSINGER's visit to China this time, the two countries have further strengthened their relationship of mutual trust; (2) Viewed from the manner of the Chinese side's enthusiastic welcome given to Secretary KISSINGER, it is presumed that China's strategy toward foreign countries, with its rapprochement with the US as the axis, will continue to be the basis of Chinese diplomacy hereafter; and (3) There prevailed a view at one time that US-China relations had been suspended. However, will it not be that such a view has been lessened due to Secretary KISSINGER's visit to China this time?

SO

- 17 -

The comment made by Japanese Government officials to the effect, "The Japanese Government intends to co-operate in the realization of peace along the line of this Agreement", was reported by a midnight radio broadcast, full of sarcasm, in such a tone as, "What are you talking about, before Israel has accepted the Agreement formally?" In his speech on the 10th, Defense Minister DAYAN satirized the KISSINGER plan, saying, "This is 'pressure-cooker diplomacy,' whereby he distributed the contents of the Agreement to several places and tried to have Israel consent ultimately to the Agreement forcibly after revealing the text of the Agreement in Japan." Then, the said Defense Minister referred to "Europe and Japan" several times as the villains, who in need of oil are applying pressure to the US.

SO

ASAHI (Full)

November 15, 1973

Libya Requests Economic Co-Operation; Joint Development of New Oil Producing Areas, Too

Ambassador to Japan Hasan BUKRES of Libya, which is said to be the stiffest faction among the Arab oil-producing nations, called on ITI Minister NAKASONE on the 14th, and requested him to extend economic co-operation to Libya. The Ambassador made the request, based on the Libyan Government's instructions. The contents of his request for economic co-operation include technical aid for oil refineries, petrochemicals and prospecting for mineral resources.

Toward this, ITI Minister NAKASONE promised to extend co-operation, and at the same time, explaining the actual situation in our country, which has fallen into a crisis due to the reduction of oil production by oil-producing nations in the Middle East, he asked for the Libyan side's understanding. The Minister also sounded out the possibility of developing oil in Libya. Ambassador Hasan BUKRES, in reply, revealed the Libyan side's intention of agreeing to development of new oil-producing areas, with the establishment of a joint venture with Japan as the premise.

Since 1971, Libya has nationalized the majors, which advanced into that nation, and its Government has bought up the greater part of the stocks held by the majors. As regards the enforcement of the measures for the reduction of oil production, in connection with the Middle East War this time, Libya formulated the strongest position among other nations.

Extremely strong attention is being paid to the fact that Libya asked for economic co-operation from our country at this very moment. Our country has hardly imported any oil from Libya. However, as Libya is producing about 3 million barrels of oil a day, and also as it is observed that that country has a great amount of oil deposits in its country, Libya is regarded as a new, promising oil supplier to our country in the future.

Accordingly, Lower House member Wataro KANNO, who will leave for Arab nations on the 26th, will hold talks with the Libyan Government on economic co-operation, in compliance with these intentions.

KS

- 19 -

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NIHON SENI SHIMBUN (Japan Textile Newspaper) (Full) November 1, 1973

## Business Records of Seven Synthetic Textile Firms in First Half of Fiscal 1973

### Most Favorable Business Record in History

**Toyo Rayon:** This company established the most favorable business record in its history. Its sales totaled ¥169,509 million, or 12.7 per cent greater than in the preceding business period. Also its profits at the regular stage amounted to ¥20,551 million and profits after taxes ¥9,517 million, or 141.5 per cent and 87.4 per cent greater, respectively, by the same comparison.

The total sales, when classified according to items, consist of ¥47,718 million for nylon, ¥70,226 million for Toreron, ¥15,715 million for Toreron, ¥5,215 million for rayon, ¥16,783 million for plastics, ¥6,697 million for chemical products, and ¥7,147 million for plants and technics exported. Toreron sales decreased slightly because of relations with Toray Textile. The original sales prices of yarn and cotton in the latest business period were equal to 84 per cent of those in the first half of 1969 when the country was not yet visited by NIXON shocks, as compared with 70 per cent in the first half of 1972 when these prices touched the bottom. It is said, therefore, that the prices of yarn and cotton are recovering. The propensity to dividends, which was 52 per cent in the preceding business period, decreased to 36 per cent. The ratio of own capital was 37 per cent.

It is expected that the sales in the present business period will total ¥180 billion and that profits will remain about the same as in the latest business period. This is because production may decrease due to the shortage of raw materials and because the production cost will increase due to the rise in the prices of raw materials and wages, while it is difficult to raise the sales prices under the present circumstances.

### Profits Yielded by Reona

**Asahi Chemical Industry:** Both the sales and profits shattered the records established in the preceding business period, to reach unprecedented figures -- ¥180,914 million and ¥8,073 million, respectively. The sales increased by 18.2 per cent and the profits by 109.5 per cent, in comparison with those in the preceding business period. Such an increase was made possible by the general improvement of the situation in the textile market and an improvement in the business records of the non-textile departments of this company.

The increase in sales, when classified according to items, consists of ¥9,333 million for Cashmilon, ¥3,603 million for nylon, ¥1,534 million for ester, ¥2,152 million for bemberg, and ¥519 million for rayon acetate.

Also greater profits were yielded by all items. Especially, Nylon 66, or "Reona," which registered a red-ink figure of ¥51 million in the preceding business period, yielded a profit amounting to ¥219 million. Also it is said that the output of textiles increased by 17 per cent and that the sales prices of textiles in the home market rose by slightly more than 12 per cent, in the latest business period.

On the other hand, the non-textile departments of this company, consisting mainly of synthetic rubber, synthetic resin and building materials, registered drastic increases in both sales and profits. Especially, resin, which registered a deficit of ¥571 million in the preceding business period, yielded a profit amounting to ¥335 million. Textile exports accounted for 15.5 per cent of the total exports by this company, as compared with 18 per cent in the preceding business period. In the present business period, it is expected that the total sales will reach ¥196 billion and that profits will increase slightly.

## Drastic Increase Recorded by Tetoron

Teijin: Sales increased by 14.4 per cent to reach ¥130,422 million, regular profits by 136.8 per cent to ¥14,657 million, and net profits by 116.4 per cent to ¥3,330 million, in comparison with those in the preceding business period. Such a favorable business record was established because the company raised the sales prices of its products by an average of 20 per cent and reduced the production cost by rationalization, to make up for the increases in the prices of raw materials and personnel expense. As for the respective items, Tetoron registered drastic increases in both sales and profits, buttressed by the smooth expansion of exports to Southeast Asia and other areas and the brisk demand at home. Nylon recorded a conspicuously great increase in profits, due to the brisk demand for nylon for industrial use, upholstery and fishing nets. Also acetate registered increases in both sales and profits, partly because it was demanded as a substitute for raw silk rayon whose prices had risen suddenly. Tevilon recorded increases due to the brisk demand for wigs and Tevilon for industrial use. Acrylic products, which had registered a deficit in the preceding business period, yielded a profit.

This company says it cannot harbor any optimistic view on the business situation in the present business period, because the tight-money policy will produce its effect on the demand at home. It expects, however, that the shortage of the supply of synthetic textiles will continue and that the demand from abroad will remain brisk. Accordingly, it has established, as its goals in the present business period, ¥143 billion for sales, ¥15 billion for regular profits, and ¥8,500 million for net profits. Also it is planning to raise the sales prices of its products by 10 to 15 per cent in the case of exports, while expanding both production and sales in spite of the shortage of the supply of raw materials.

## Profits Increased by 50 Per Cent

Unitika: Sales increased by 13.8 per cent to reach ¥1,21,356 million, regular profits by 400.1 per cent to ¥12,022 million, and net profits by 50.2 per cent to ¥3,533 million, in comparison with those in the preceding business period.

When classified according to items, nylon registered an increase by 9.8 per cent, ester 11.4 per cent, vinyloxan 13.6 per cent, cotton 24.7 per cent, wool 30.7 per cent, rayon 14.9 per cent, and manufactured goods 26.6 per cent. The non-textile products alone, however, recorded a decrease by 1.4 per cent. The business record improved due to the improvement in environment, such as the rise in market prices. Especially, profits increased proportionately with sales in the case of synthetic textiles. In the case of cotton and wool, however, profits did not increase greatly in spite of the expansion of sales, because of the rise in the wages of contract workers and the prices of raw wool.

It is expected that the sales and regular profits in the present business period will total ¥130 billion and ¥10 billion, respectively. The profits after taxes are likely to total ¥3,600 million, or about the same as in the latest business period. The company, however, is to decide whether to resume dividends only after the settlement of accounts for the present business period at the end of March next year, because it wants to increase its internal reserve funds and expand the retirement allowance fund by 50 per cent.

Exports by Unitika in the latest business period totaled ¥13,174 million.

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## Regular Profits Increase 3.5-Fold

**Mitsubishi Rayon:** In the latest business period, sales totaled ¥82,700 million, regular profits ¥5,545 million, and net profits ¥2,215 million. When compared with those in the preceding business period, regular profits increased by 350.1 per cent, and net profits by 132.4 per cent. On the other hand, sales decreased by 0.3 per cent. This is because the company changed the method of accounting to exclude the profits gained in advance by the sale of raw materials. It is said that the sales increased by ¥9,600 million, when calculated according to the previous method of accounting.

The total sales, when classified according to items, consist of ¥39,251 million for Vonel, ¥18,668 million for Soluna, ¥4,557 million for Pylen, ¥4,026 million for chemical fiber, and ¥16,263 million for resin. The company was able to earn greater profits, owing to the improvement of the market situation and the rise in the prices of its products. Exports amounted to ¥16,398 million, and the ratio of exports to the total sales, which was 19 per cent in the preceding business period, increased slightly, to 20 per cent.

It is expected that the total sales in the new business period will reach ¥38,500 million, consisting of ¥41,500 million for Vonel, ¥20,000 million for Soluna, ¥4,500 million for Pylen, ¥4,500 million for chemical fiber, and ¥18,000 million for resin. Profits at the regular stage are expected to total ¥6,000 million, and profits after taxes ¥2,500 million, or ¥300 million greater than in the latest business period.

## Industrial Materials Making Brilliant Showing

**Kurashiki Rayon:** This company established the most favorable business record in its history, with the exception of the period of the Korean War. Sales increased by 9.7 per cent to ¥79,638 million, and profits by 253.3 per cent to ¥2,480 million, in comparison with those in the preceding business period.

Of the respective items, vinyloxan yielded profits 2.7 times as large as those in the preceding business period, due to the brisk demand for such industrial materials as belt hose, fishing-net rope and building canvas, and the rise in sales prices. Ester, too, yielded a profit of ¥1,203 million to offset the deficit registered in the preceding business period, due to the increasing demand and favorable market conditions brought about by the shortage of the supply of natural fiber. Yarn sales consisted of ¥22,474 million of staple yarn (¥23,240 million in the preceding period) and ¥15,790 million of filament (¥14,617 million in the preceding period). Staple yarn sales involved profits amounting to ¥636 million and filament sales ¥567 million, while they registered deficits amounting to ¥562 million and ¥33 million, respectively, in the preceding period. In the latest business period, the prices of staple yarn rose by 10 per cent, and those of filament by 15 per cent. Of chemical products, Clarino and Poval registered greater sales and profits. Clarino sales, which amounted to ¥3,241 million in the preceding period, increased to ¥4,231 million, involving profits totaling ¥643 million, as compared with ¥510 million in the preceding period. The good showing of such items as synthetic rubber, non-woven cloth and resin, too, contributed to the establishment of a favorable business record. Exports accounted for 22.4 per cent of the total sales. It is expected that the present business period will register sales amounting to ¥84 billion, regular profits ¥6 billion, and net profits ¥2,500 million.

## Red-Ink Figure Registered by Raw Silk

**Toho Rayon:** With the exception of the period of the Korean War which began in 1950, this company established the most excellent business record in its history. Sales increased by 16.9 per cent to ¥32,779 million, regular profits by 313.3 per cent to ¥2,715 million, and net profits by 269.1 per cent to ¥328 million, compared with those in the preceding business period.

Of the total sales, Beslon accounted for ¥20,543 million, or 62.7 per cent, rayon ¥5,986 million (13.3 per cent), Raycott ¥1,784 million (5.4 per cent), cotton yarn ¥1,358 million (5.7 per cent), and raw silk ¥2,605 million (7.9 per cent).

The favorable turn of the market situation contributed greatly to the improvement of the business record. It is said that the sales prices of Beslon and spun products rose by 12 to 13 per cent and 40 per cent, respectively.

Only raw silk registered a deficit with a loss of ¥183 million caused by revaluation, because the market has been chaotic since this spring, entering a very unfavorable situation toward the end of the latest business period.

Exports totaled ¥4,780 million. The ratio of exports to the total sales, which was 24.2 per cent in the preceding business period, fell by 9.6 per cent, to 14.6 per cent.

The company expects its total sales to amount to ¥35 billion, regular profits ¥3 billion, and net profits ¥1 billion, in the present business period.

HF

KANAGAWA SHIMBUN (Full)

November 14, 1973

## Air Bases Containing Danger -- Crash of US Aircraft Carrier Deck-Plane; "New-Face" Planes Flying Arbitrarily

A deck-plane of the Midway, which is using Yokosuka as its home port, has crashed again from the skies over Japan. The A7 Corsair attack-plane, which had been flying from Iwakuni to Atsugi Naval Air Station, crashed into a mountain near Lake Kawaguchi in Yamanashi Prefecture. It all occurred on the evening of Nov. 12. This was the third time for a Midway deck-plane to give rise to an accident in Japan.

Even today, after the lapse of 28 years since the end of the War, the skies above Japan are still "occupied" by the air areas for the exclusive use of the US Forces, including the vast Yokota air area, Iwakuni, and Misawa. Civil planes of our country fly, jostling closely with one another, as if to avoid these air areas. US military planes, which are "uninvited guests," conspicuously squeeze themselves into the skies, where traffic will be congested even at other times. Thus, the skies over Japan are dangerous. What are the reactions of various local areas concerned to such accidents?

According to surveys, conducted by the Transportation Ministry, the daily average number of planes, which fly in the skies above Japan, is about 1,600 (instrument flights), and about 250 to 260 or so of these planes are SDF planes or planes of the US Forces.

However, since the aircraft carrier Midway entered Yokosuka Port, the number of US military planes, which fly among US Forces' bases, including Iwakuni, Atsugi, Yokota, and Misawa, has increased rapidly. Flight plans have been submitted to the Aviation Bureau at the rate of 10 to 20 such planes a day. Thus, these planes fly about along the jet route.

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This means that US military planes are squeezing themselves into the air routes, which are in a congested state. In other words, "the skies over Japan are really full of danger." Any planes will be permitted to fly if they submit formal flight plans based on the Aviation Law. Therefore, the present situation is such that the Aviation Bureau cannot but assume the attitude of an onlooker, though with a feeling of uneasiness.

On Oct. 22, a mid-air collision between two deck-planes occurred in the skies above the sea area to the east of Okinawa Main Island. Two accidents have occurred on the Japanese Archipelago and in a peripheral area during the period of about one month since the Midway entered Yokosuka Port, and three attack planes have been lost. The JDA thinks that these accidents are abnormal, as accidents concerning the US aircraft carrier, which is said to be in combat readiness.

A JDA source points out that the cause of these accidents "may be the pilots' lack of sufficient training and their lack of adequate knowledge as to the meteorological conditions in Japan."

According to the same source, whenever an aircraft carrier was deployed in the West Pacific area, the US Navy used to replace the crew members of the aircraft carrier and to conduct various kinds of practical training separately after having the carrier repaired at a dock. Moreover, such an aircraft carrier used to carry out overall training in the east Pacific area, as an aircraft carrier. Thus, the aircraft carrier had completed sufficient training to prepare for any war when it was deployed in the West Pacific. This time, however, the Midway went straight to Yokosuka from San Diego along the West Coast of America, though about 70 percent of its crew members had been replaced. Therefore, the amount of training as to the Midway crew members has decreased to a considerable extent.

Such a lack of sufficient training is said to have caused the mid-air collision between the two deck-planes, which collision occurred in the skies above the sea area to the east of Okinawa Main Island on Oct. 22.

The ASDF Office of Staff also thinks that the crash accident, which occurred near Lake Kawaguchi on the night of Nov. 12, may have been caused by the confused air currents, which tend to arise around Mt. Fuji at around the beginning of the autumn.

In the past, there occurred accidents where SDF planes and foreign civil planes crashed after becoming dragged into the confused air currents in the vicinity of Mt. Fuji. There is said to be a strong possibility that the Midway deck-plane pilots met with the accidents, because they had not been aware of such particular weather conditions in Japan.

In connection with the turning of Yokosuka into a home port for the Midway, its deck-planes are using Atsugi as a ground base and Misawa (Aomori) as a training area.

Fortunately, the accidents, which have hitherto occurred, did not cause any losses to local residents concerned. However, it is said that the annual average number of days for the Midway to enter Yokosuka Port will exceed 100. During that period, the deck-planes are scheduled to carry out training, centered on landing and take-off. Thus, the "new-face" pilots will fly about in the skies over the Japanese Archipelago. This means that the people may constantly be exposed to a "dangerous situation."

NMI

MAINICHI (Full)

November 14, 1973

Will Maintain Tight-Money Policy for Long Time to Cope with Tight Oil

Situation: President SASAKI

At the Upper House Commodity Price Special Committee meeting on the 13th, in response to the question by JSP member Shiro TAKEDA, Bank of Japan President SASAKI, who attended the meeting as a reference, expressed his views as follows: (1) Large enterprises' liquidity on hand will probably come near the lowest level at the end of this year. (2) Because of such an unexpected situation as the oil shortage, we cannot help but maintain a strong tight-money policy for a long time. (3) It is necessary for the Government to compile the budget for next fiscal year by confirming sufficiently the gross production level. Above all, it is important that the Government show the posture of curbing commodity prices.

Concerning the current financial situation, President SASAKI clarified the outlook as follows: The tight-money policy has spread considerably through window-restrictions by city banks, which became most influential after the War. Large enterprises' liquidity on hand will decrease to less than 10% of the amount of monthly transactions for the months of November and December when they are in need of settlement funds, coming near the lowest level in comparison with the past.

SA

NIHON KEIZAI (Full)

November 16, 1973

Government Should Conduct Wholesale Review of Its Foreign Policy:

Deputy Prime Minister MIKI

With the prices and energy crises, which are becoming serious, as the background, heated discussions on these problems are being conducted within the LDP. On the 15th, the MIKI and NAKASONE Factions held general meetings, respectively, and discussed concrete countermeasures.

At its general meeting on the same day, the MIKI Faction decided that in order to tackle prices and energy problems, the said Faction will set up a committee on diplomacy and economic affairs within the said Faction and start conducting studies on concrete measures. In connection with this, Deputy Prime Minister MIKI made a statement to the effect that, "The time of high economic growth has passed. The time has come to conduct a wholesale review of our country's hitherto-taken foreign policy, including the Arabs."

Also, at a sponsors' meeting held prior to the general meeting, a critical view on the ¥2 trillion tax reduction plan was voiced by National Organization Committee Chairman ISHIDA and others. The MIKI Faction, on its part, noted that in view of the circumstances whereby Prime Minister TANAKA was born, the said Faction, on its part, is responsible for the "TANAKA Government," and from this viewpoint, the said Faction intends to make statements positively, hereafter.

The NAKASONE Faction also held a general meeting at its office in Tokyo from after noon on the same day, and discussed prices, inflation, and the energy crisis. At this meeting, Chairman NAKASONE (ITI Minister) explained the general outline of the oil policy, which is being formulated by the Government. Policy Board Vice Chairman KURANARI also explained immediate countermeasures, which are being pushed by the LDP.

In response, views were voiced from among many Dietmen, who attended this meeting, to the effect, "The Government-LDP in a body should formulate over-all countermeasures promptly." In particular, there were many persons, who took the view that in order to tide over such a situation, it is indispensable to give full explanations also to the Opposition Parties and private enterprises and seek their co-operation.

SO

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MAINICHI* (Full)

November 9, 1973

Crude Uproar over Postponed "Yakut Negotiations"; Source Is Hasty Conclusion; "Haste" Tabooed for Long Term

The Japan-USSR negotiations for the development of raw material coal at south Yakut, Siberia, which were "scheduled" to be held in Moscow from the 12th, were suddenly "postponed." This is reportedly because, in response to Keidanren Chairman UEMURA (Japan-USSR Economic Committee Representative Member), who invited Soviet Trade Mission Representative BORIN on the 6th, requesting him to "send quickly a formal invitation to the negotiation delegation from the Japanese side, the Representative notified him on the morning of the 7th that "we are not ready to receive the delegation; we will inform you of the time for negotiations, for which we hope, as soon as possible."

The south Yakut raw material coal development plan is one of the five biggest Siberia development projects, comparable to the development of the Tyumen Oil Fields, Yakut natural gas fields and oil, natural gas on the continental shelf of Sakhalin, and the second KS Agreement (forestry resources development in the Far East). Preparations have been made comparatively smoothly in comparison with the other four projects. As the first negotiations to be held following the Japan-USSR summit talks, the negotiation delegation, headed by Japan-USSR Economic Committee Raw Material Coal Sub-Committee Chairman MAKITA (Japan Steel Tube President), was scheduled to depart on the 11th. All the more, those concerned on the Japanese side were given a great shock. Being unable to judge the real intention of BORIN's reply, they guessed, "Is it not that the USSR showed its dissatisfaction with Japan concerning all Siberia development projects?" Also, they clearly showed distrust in the USSR, saying, "What is the USSR really thinking?"

However, according to those circles concerned who are in touch with the inside of the matter, it seems that the postponement of the negotiations not only resulted from the sudden unilateral notice from the Soviet side. According to the same circles, as for the negotiations from the 12th, there was originally no formal agreement between Japan and the USSR. It was a mere hope on the Japanese side.

It is true that, right after Prime Minister TANAKA returned home from the USSR, the Japanese side transmitted its hope as to the time for negotiations, saying, "A week from the 12th." To the hope, it seems to be true that the Soviet Trade Mission member transmitted his thinking, saying, "We will probably be able to accept that." However, this was not formal approval by the Soviet Government. Drawing a hasty conclusion based on that, they quickly made it public (at a press conference with New Japan Steel Managing Director Saburo TABE on October 18). The source of misunderstanding was in this hasty announcement.

Besides, according to those circles concerned, despite the fact that the Japanese side transmitted in the summer of this year its hope for holding "negotiations in October," the Japanese side suddenly cancelled it by saying that "it had taken an unfavorable turn" when the Soviet side gave a formal reply of approval. Therefore, concerning the uproar over the postponement of negotiations this time, those circles concerned say that "there is a problem in that the Soviet side did not give a reply till the last moment, but the Japanese side also acted slightly carelessly; both are to blame."

If true, it was too crude that they were astonished while expressing distrust in the USSR. The development of Siberia is a big, long-lasting project. Even if a basic agreement was reached at the summit talks, considerable effort and time are required for its materialization. Besides, the USSR is a tough negotiator, and the internal structure of the Soviet Government is complicated. We already know that they will not move as easily as we think. For this reason, Prime Minister TANAKA should have strongly hoped for the unification of the windows on the Soviet side at the summit talks. Nevertheless, it is still in such a state. The future may be imagined. Success or failure in developing Siberia depends on mutual trust by Japan and the USSR. We want them to avoid unnecessary mutual distrust through clumsiness.

* Choryu

SA

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The question is that there is a difference in economic policy between TANAKA and FUKUDA, and even at present, their confrontation is still smoldering over super-express trains and the problem of bridge-construction between Honshu and Shikoku. Within the FUKUDA Faction, the majority opinion is that "Unless the Prime Minister promises a policy change, [FUKUDA's] sideslip into a post of a Cabinet Minister in charge of economic affairs will be quite meaningless." Adjustment on this point has become another focal point of the personnel reshuffle.

In the light of these various situations within and outside the Party, the Prime Minister intends to pass his final judgment toward the end of this week, if early, or at the beginning of next week at the latest. During this period, his talks with influential leaders will be held one after another. If the Prime Minister, who lit the fuse to a reshuffle in his statement in Nagano, is to shelve it, there may possibly arise the criticism that he "cannot even carry out personnel administration." Under this circumstance, the Prime Minister is about to face a serious moment.

MT

YOMIURI (Full)

November 16, 1973

## Counter-Policies Shortly -- Statement by Foreign Vice-Minister HOGEN on Oil

US Secretary of State KISSINGER will leave Japan aboard a special plane at 8:00 a.m. on the 16th from Haneda. On the basis of the results of the series of talks between the Secretary and Prime Minister TANAKA and other leaders of the Government, the Government has entered into studies on our country's independent Middle East policy to break the oil crisis.

Foreign Vice-Minister HOGEN stated the following, regarding this problem, at his press conference on the evening of the 15th: "We are now checking into concrete counter-policies." He clarified that the Foreign Ministry will map out concrete policies, such as dispatching an 'oil special envoy' shortly. A Government source said that night that as a premise for mapping out these counter-policies, the Government is working upon the Arab oil-producing countries, through the Ambassadors to the nations in the Middle East, to clarify their demands toward our country.

MT

ASAHI (Full)

Eve., November 15, 1973

## Secretary KISSINGER, Though Always Smiling...

The oil crisis has finally driven the nation into consumption controls. Just at this juncture, on the 14th, US Secretary of State KISSINGER came to Japan. He is busy ing himself from place to place for a settlement of the Middle East dispute which touched off oil-supply restrictions.

Secretary of State KISSINGER, who ate his breakfast together with Finance Minister AICHI on the morning of the 15th, wore smiles from beginning to end. What does he think of the serious oil crisis in our country?

MT

NIHON KEIZAI (Full)

November 16, 1973

## OHIRA Faction Holds Study Meeting

Kochi Kai (OHIRA Faction), from a little past noon of the 15th, held a study meeting on the oil problem, which was attended by about 30 Upper House and Lower House members, including Foreign Minister OHIRA, too. The OHIRA Faction has been holding a study meeting once every week since a long time ago, and is continuing study in the policy field. At the study meeting that day, Kochi Kai invited Research Division Director HIROSE of the MITI Industrial Policy Bureau as a lecturer, and exchanged questions and answers actively.

Especially Foreign Minister OHIRA, who has been stressing the importance of the resources problem since half a year ago, proposed, at the young members seminar of the same Faction, held toward the end of August in Hakone, the "slowing down of the speed of the expansion of production and the carrying out of an economization movement." At the meeting that day also, OHIRA clarified his view that "with the position that materials are limited as the basis, a re-check should be made in various fields, including industries, the economy, and culture."

KS

ASAHI (Full)

November 8, 1973

## "I Want to Visit Japan and Tell Facts": KIM Dae Jung to Shin AOJI, Critic

Shin AOJI, a critic, who had been visiting the ROK with the aim of confirming KIM Dae Jung's intentions as to a re-visit to Japan, returned home on the 7th. In Miyazaki City, on his way to Hyuga City in Miyazaki Prefecture, in which City he is slated to give a lecture, he disclosed the contents of his talks held with KIM Dae Jung, saying, "KIM is very anxiously hoping to come to Japan."

AOJI visited the ROK on the 5th.

AOJI met KIM Dae Jung for about three hours from 6:30 p.m. KIM, at the meeting, stressed that "I want to visit Japan at all costs, and express my gratitude." He reportedly said: "On that occasion, I want to announce the facts which I know."

KS

MAINICHI (Full)

November 16, 1973

## US-Japan Negotiations to Open Next Month; Promotion of Development of Yakut Gas: Export-Import Bank President SUMITA

Japan Export-Import Bank President SUMITA held a press conference on the 15th, and clarified the following points: (1) We are checking into establishment of an office in Beirut, in consideration of the recent oil situation and also in preparation for economic co-operation between Japan and the Middle East in the future; and (2) As regards US-Japan negotiations for the purpose of giving concrete form to the development of natural gas in Yakut, the leaders of the Japan-Soviet Economic Committee Natural Gas Sub-Committee (Chairman: Tokyo Gas Board Chairman Hiroshi ANZAI) and El Paso Natural Gas will conduct negotiations from December 3 in Houston, and they will discuss the outcome of the US-Soviet negotiations conducted recently.

KS

In response to this, Secretary of State KISSINGER is said to have
promised that efforts will be made for an overall settlement of the con-
flict, saying that "I understand fully the situation of Japan." It is
said, however, that in regard to the future outlook, which the Japanese
side wished to hear the most, he presented an extremely severe outlook,
such as that (1) Even if the conflict is settled, the Arab side will
probably not remove the restrictions on supply, immediately; (2) It will
take at least six months to return to the former supply situation, as in
the past; and (3) Separately from the restrictions on oil supply, the
raising of the prices of crude oil will continue in the future, too.

The Government had so far held the view that "if the conflict is
completely settled, the oil uneasiness will be dispelled" (Foreign Ministry
source). However, Secretary of State KISSINGER's outlook poured cold
water completely on such an "optimistic expectation."

Occasioned by the talks with Secretary of State KISSINGER, the
Government has finally decided to get moving, and has, at long last,
decided to take the first round of measures to curb consumption, and
to show the posture of exploring the possibility of changing the direction
of its Middle East policy and its industrial policies.

As regards the Middle East policy, the first sign of a possible change
is indicated in such statements as that "Japan's oil policy will be decided
by Japan itself" (Foreign Minister OHIRA on the 14th), and that "although
there is no change in basing ourselves on U.S.-Japan friendly relations,
what oil policies one will take concretely is a matter to be decided by
that country itself" (Foreign Minister OHIRA on the 15th).

It is possible to take the view that these statements by Foreign
Minister OHIRA resulted from the U.S. side's "accepting" to some extent
these positions of the Japanese side.

In the midst of the deepening oil crisis, views calling for a change
in our Middle East policy are also strong within MITI circles. However,
our country cannot agree to (1) the severing of diplomatic and economic
relations with Israel or (2) weapons aid to the Arab side, as desired by
the Arab countries.

Therefore, as a practical policy change, which is conceivable, it is
limited, at the most, to make still more clear Japan's supporting the
"withdrawal of Israel from the areas which it has occupied," demanded in
the U.N. Security Council's Resolution (No. 242), which the Arab side
regards as the basis for a Middle East peace.

However, measures of only this degree will probably be taken by the
Arab side as nothing more than a "political pose," and in the Foreign
Ministry, too, views doubting their actual effects are strong.

A certain Foreign Ministry leader, who was also present at the talks
with Secretary of State KISSINGER, emphasized the urgent necessity of a
policy change in both the short and long-range fields, including (1) The
shelving of the Archipelago Re-modelling Plan, of a type which consumes
a large amount of energy; (2) the shifting of the industrial policy, center-
ing on heavy and chemical industries; and (3) the diversification of the
channels for the securing of resources, which had centered excessively on
the Middle East, in the past, and the expansion, at the same time, of develop-
ing its own independent supply channels, which do not depend on the majors
(international oil capital), as a national policy, even though this source
added the remark that "these questions are really outside my province ..."

When viewed in this way, the "footsteps" left by Secretary of State
KISSINGER were big, after all, even though this may have partly been due
to the present circumstances.

(Wasuke INABA, Political News Section)

KH

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SANKEI (Full)

November 15, 1973

Kanagawa Prefectural Police Arrest 15 US Servicemen Who Smuggled 2 Kilograms of Heroin into Japan

(Yokohama and Yokosuka)

The Kanagawa Prefectural Police Security Division and the Yokosuka Police Station have arrested as of the 14th 15 US servicemen, including an Air Force non-commissioned officer, who is regarded as a boss of the smuggling organization of US servicemen in Japan, who had smuggled a large amount of narcotics into Japan. In connection with the said case, the said Police Station had already arrested five persons at the end of last month, and the US servicemen, who have been arrested, amount to 20. According to the investigations, the smuggling organization is comprised of more than 100 persons and the amount of heroin, which has been brought into Japan, totals 2 kilograms, worth ¥1 billion at terminal prices. It is believed that this smuggling organization is such a large-scale organization. So, the said Security Division and Police Station have requested the US Forces Command in Japan to investigate its bases in foreign countries and are hastening to clarify the organization thoroughly.

The arrested non-commissioned officer, who is regarded as a boss, is Thomas GAMBLE (39 years old), who serves at Yokota Air Base. The other 14 persons are Navy and Air Force servicemen at Yokota, Tachikawa, and Atsugi Bases.

This case was detected at the end of August because three persons, including Petty Officer Third Class S. H. HUNTLEY (22 years old), a crewman of the US Navy 7th Fleet flagship "Oklahoma City", which made a port-call at Yokosuka, had left three bags of heroin (2.5 grams) and film cans, which contained their identification-cards, in a taxi-cab in the said City.

When the said Police Station arrested the three persons, including HUNTLEY, at the end of last month and investigated them, it was found that with the snack-bar "Zigzag" in Hon-cho in the said City and the bars in the vicinity of such US military bases as Atsugi, Yokota, and Tachikawa as the illicit-sales places, HUNTLEY and others had sold about 2 kilograms of heroin to US servicemen in Japan and Japanese bar-girls, who are suffering from narcotics poisoning.

However, they stood completely silent as to the means of acquisition. Because of this, the said Police Station ascertained that whenever the Oklahoma City made a port-call at Yokosuka, HUNTLEY went to Yokota Air Base, and deduced that GAMBLE is regarded as a boss of the group.

When GAMBLE came out from Yokota Air Base on the 13th, the said Prefectural Police arrested him and started full-scale investigations into the smuggling route and sales organizations. The said Prefectural Police view that as GAMBLE's work is to receive military mail and parcels inside the said Base, the heroin was smuggled into Japan from the US mainland or Southeast Asia, utilizing military mail, which is free from checking.

SO