YOMIURI (Full)

November 14, 1973

Secretary of State KISSINGER to Arrive in Japan Today; Co-ordination on
Pro-Arab Shift; Talks with Prime Minister Tomorrow

U.S. Secretary of State KISSINGER, who is now visiting China, will arrive in Japan from Shanghai, by a special plane, landing at Haneda at 1:20 p.m. on the 14th, together with U.S. Ambassador to Japan INGERSOLL, who is accompanying him. Secretary of State KISSINGER will have talks with Foreign Minister OHIRA at the Foreign Ministry for about two hours, from 3:30 p.m. on the same afternoon. On the 15th, he will also have talks with Prime Minister TANAKA at the Prime Minister's Official Residence in the morning, while in the afternoon, he will have talks with ITI Minister NAKASONE at Hotel Okura, where the Secretary of State will be staying. He is scheduled to leave for home on the morning of the 16th.

Prime Minister TANAKA and other Government leaders are planning to "gather information" concerning the outlook for the settling of the Middle East conflict, U.S. measures to cope with the Arab countries' restrictions on oil supply, the state of progress made in U.S.-China relations, and on the KISSINGER concept, through their talks with the Secretary of State. At the same time, they will convey to him their intention of further promoting closer ties with the Arab countries, as our country, which does not have energy resources, must depend on Middle East oil.

KH

NIHON KEIZAI (Full)

November 14, 1973

U.S. Secretary of State KISSINGER, who is now visiting China, will arrive in Japan by a special plane, which will land at Haneda at 1:20 p.m. on the 14th. In addition to having talks with Foreign Minister OHIRA from 3:30 p.m. on the same day, the said Secretary of State will also have talks with Prime Minister TANAKA (11:00 a.m.), Finance Minister AICHI (7:45 a.m.) and ITI Minister NAKASONE (1:30 p.m.) on the 15th. At this series of talks, it is considered that the main subject matter will be the Middle East peace question and the oil crisis problem. In advance of their talks with Secretary of State KISSINGER, Prime Minister TANAKA and Foreign Minister OHIRA will make preliminary arrangements on the 14th, on how they will conduct their talks with him.

KH

SANKEI (Full)

November 14, 1973

JSP to Send Delegation to Arab Countries for Talks on Oil Problem

The JSP will dispatch a Party delegation in the near future to various Arab countries, to have talks on the Middle East oil problem. This was clarified by Chairman NARITA at his press conference on the 13th. According to Chairman NARITA's explanations, the JSP had received an invitation from the Arab Federation (composed of 19 nations), before the outbreak of the Middle East War, and the Delegation is scheduled to visit Egypt, Syria, Iraq and Libya.

KH

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In order to fill this comprehension gap, the Ambassador pointed out, in his speech, that America, for example, must carefully understand, not only the Japanese language, as a matter of course, but also delicate expressions, which cannot be expressed in words, as well as the culture and the customs of the Japanese people.

As a matter of fact, the Ambassador considerably earnestly studied the Japanese language, which he did not know at all, from seven to eight in the morning, every day, ever since he arrived at his post. His teacher was a teacher from the Japanese Language School, set up within the Embassy, and he casually used Japanese words, which he had just learned, at parties.

Talks Easily With Everyone -- Skin-ship: It is said that there has been no other American Ambassador who dropped in for visits so casually as Ambassador INGERSOLL.

In the spring of this year, he dropped by to pay a visit at the JDA. It is very rare for an American Ambassador to Japan to pay a call on the JDA. JDA officials concerned and the press corps tensed, thinking that "This must be something very important. Some very grave situation concerning the U.S.-Japan Security Treaty or the question of Japan's defense must have arisen." However, it was actually nothing but a courtesy call. The JDA side was relieved when he said: "I was too busy at the time of my arrival at my post and was unable to call on you, and so belatedly ..."

A certain Foreign Ministry leader says: "He really visited the Foreign Ministry very frequently. I think he came three or four times a month."

In the same way, he attended the meetings and parties of our country's economic circles, without any pretentiousness. He also called on "big-name economic leaders" too. It is said among business circles that "If there is something, he comes himself, and he not only attends meetings, but talks with everyone..." (Keizai Doyukai Secretariat Chief Yoshiaki HAYAKAWA)

When asked about how many Japanese businessmen he has met during his stay in Japan as Ambassador, his reply is that "I have met with so many people that I do not know."

His aim is skin-ship. This means that the most certain mutual understanding is to appear personally and shake hands with the other side. It is certainly an attitude which is very befitting an Ambassador with a business background, but it is also said that this is the biggest achievement of INGERSOLL diplomacy.

Remembers Japanese Names Immediately, Too -- Has Grasp of Key Points:

An informed source of the American Chamber of Commerce in Japan, who was active in arranging exchange between Japanese and American businessmen, during the Ambassador's term of office, voices his admiration, saying: "At any rate, he is a person who really studied Japan and the Japanese economy remarkably well."

This source even stated definitely, that on the occasion of the visit to Japan recently by Ford's President IACOCCA, "There is no doubt that the Ambassador used his ability and face as a 'businessman Ambassador,' aiming at linking together Ford and Honda. It is safe to reach that judgment, even in the light of the moves of persons close to the Ambassador."

This source expressed the cool-headed assessment as follows: "At any rate, unlike other Ambassadors in the past, he had a full grasp of the key points, such as what section of Keidanren he should go to over what question. This made it difficult, but when thought is given to future U.S.-Japan economic relations, I think that it will be in the interests of Japan, too, rather to value actually such persons as Ambassador INGERSOLL."

KH

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NIHON KEIZAI (Full)

November 13, 1973

Heading toward Consultations with US on "Yakut"; Japan-Soviet Economic Committee's Natural Gas Discussion Council's Way of Pushing Negotiations with Soviet Side

According to a clarification made by a business source on the 12th, the Japan-Soviet Economic Committee's Natural Gas Discussion Council (Chairman: Tokyo Gas Board Chairman Hiroshi ANZAI) decided to dispatch a Delegation to Houston in the US for three days from December 3, in order to discuss the development of Yakut natural gas with the leaders of El Paso Natural Gas, a major partner on the US side. The Delegation will talk with them on how to push negotiations with the Soviet side in the future, on the basis of the US-Soviet negotiations conducted until the 5th in the US on the development of Yakut natural gas. Following such private negotiations, the Japan Export-Import Bank (President: Satoshi SUMITA) intends to consult with the US Export Bank on the conditions, etc., of bank loans to be extended to the Soviet Union. On the basis of these Japan-US consultations, it has become likely that tripartite talks among Japan, the US and the Soviet Union will be held on the development of Yakut natural gas even within this year at the earliest.

With regard to the Yakut natural gas development project, First Deputy Foreign Trade Minister OSSIPOV, the responsible person for the project on the Soviet side, visiting the US, consulted with the US Export Bank and El Paso Natural Gas from October 10 to November 5 on the conditions of extending bank loans for prospecting and surveys of natural gas in Yakut, and other items. At the same time, the Soviet side consulted with the US on the Murmansk natural gas development project, which is to be carried out by the two countries. How far consultations developed between them on the Yakut and Murmansk projects has not been formally conveyed to our country as of the 12th.

As a result, the Japan-Soviet Economic Committee's Natural Gas Discussion Council was boiling down with El Paso Natural Gas when its Delegation should be dispatched to the US for consultations on the contents of the latest US-Soviet negotiations and how Japan and the US should carry out negotiations with the Soviet side in the future. Recently the US side answered, and it was decided that consultations will be held in Houston on December 3 to 5. The composition of the Delegation has not been decided yet, but there is a strong possibility that Chairman ANZAI will head the Delegation.

The Siberian Development Project is to be negotiated on the basis of the Japan-Soviet Economic Committee, after Prime Minister TANAKA's visit to the Soviet Union. On the 11th, just before Japan's negotiation team was to leave for the Soviet Union to negotiate on the development of south Yakut coking coal, which was scheduled as the first item of the Project, its departure was postponed for reasons given by the Soviet Union, and the planned negotiations have been deadlocked. As a result, the prospects have become strong that the negotiations on the development of Yakut natural gas will be re-opened, on the basis of Japan-US consultations to be carried out at the beginning of December, with the Soviet side, earliest among the five great projects for development of Siberia.

KO

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MAINICHI (Full)

November 14, 1973

# UNICE-Keidanren Conference Reaches Agreement on Japan-EC Co-operation over Oil Problem

On the 13th, the Economic Mission of the Industrial Union of the European Community (UNICE), now visiting Japan, and the Federation of Economic Organizations (Keidanren), exchanging views on problems, such as Japan-EC trade and economic relations, the New International Round, energy resources, and enterprises' social responsibility, at the Imperial Hotel in Hibiya, Tokyo, closed their two-day-long conference.

After the conference, Keidanren President Kogoro UEMURA and UNICE Chairman HUVELIN, holding a press conference, stated that they had reached agreement on the following points: (1) In order to solve the oil crisis, Japan and the EC will closely co-operate with each other in such fields as economic co-operation with oil-producing countries and the development of substitute energy; (2) balanced expansion will be made of Japan-EC trade, and (3) the New International Round of GATT will be promoted, in order to expand free trade.

Furthermore, in answer to the question "Is it not that the present oil crisis will give a blow to both the Japanese and EC economies and prevent the balanced expansion of world trade?", both leaders expressed comparatively optimistic views as follows: "It is certain that both economies will be affected, but no pessimistic view was heard that the economies will come to catastrophes" (President UEMURA). "I do not think that the present difficulty in supplying oil is so serious and long-termed that it will impair economic growth."

KO

ASAHI (Full)

November 14, 1973

## 20 Per Cent Reduction of Oil to Bring Minus Growth: Bank of Japan's Trial Calculation

In case the supply of oil is reduced, how will the economic growth be affected? This has become a problem. According to the results of a trial calculation, clarified by the Bank of Japan on the 13th, in case next year's supply of oil is reduced by 20 per cent from the planned supply, the real growth rate of the GDP will be reduced to zero or minus 1 per cent. In case it is reduced by 14 per cent, the real growth rate will be 4 or 5 per cent.

The above results of the trial calculation are considerably lower than the estimates made by MITI. The figures, however, are produced on the supposition that the 59 days' reserves of oil are maintained as they are. In substance, therefore, there is no great difference between them.

Nevertheless, the possibility that the real economic growth rate will become minus is serious. The Bank of Japan intends to seek a fundamental re-examination of the financial policy, including next year's budget.

KO

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ASAHI (Full)

November 14, 1973

Oil and Prices Becoming Key Political Issues

Change in Rapid Growth Policy Considered Inevitable; Growing Criticism Within
and Outside Ruling Party Expected to Affect "Remodeling of Archipelago"

The Government is scheduled to hold a conference of all Cabinet Ministers on over-all measures for controlling of oil consumption, from 1:00 p.m. on the 14th, in an effort to cope with the oil crisis, which has been touched off by the Middle East War. Within the Government and the LDP, there is a growing tendency to recognize that the present situation involves a very serious problem, which may shake the foundation of Japan's economic and financial policies. Such a crisis-feeling has led to the rapid growth of the opinion that the Government should re-examine such plans as reduction of taxes by ¥2 trillion and construction of a network of new National Railway lines throughout the country, which plans Prime Minister TANAKA wants to implement from the next fiscal year, from the standpoint of curbing gross demand and halting the progress of inflation and the rise in prices. There are indications that "TANAKA politics," which has been following the rapid growth policy, will be forced to correct its orbit drastically.

EPA Director General KOSAKA, touching on the current oil crisis at his
news conference on the 13th, stated that "The Government should re-examine
the scale of the next fiscal year's budget, the amount of Government bonds
to be issued and the plan for tax reduction, in connection with the necessity
of curbing gross demand." Such an opinion is spreading rapidly within some
departments of the Government, such as the Finance Ministry, MITI and the EPA,
and some circles within the LDP, such as the FUKUDA Faction and "Showakai"
which is an organization of young Dietmen.

A reduction in the supply of crude oil to Japan will deal a serious blow to the people's livelihood and industrial activities, which are buttressed by oil. Also it will seriously affect the economic forecast, the scale of the budget and the tax reduction plan for the next fiscal year which the Government is going to determine in the near future. This means that the decrease in the supply of crude oil presents a problem, which will shake the very foundation of the Japanese economy and national finances. Unless the present crisis is alleviated, it cannot be expected that the Japanese economy will continue growing at such a tempo as heretofore. ITI Vice-Minister YAMASHITA pointed out this possibility after he reported the oil supply situation to Prime Minister TANAKA on the 12th, saying that "The rate of economic growth in the present fiscal year will be four or five per cent and may even become lower than that in the recession year of 1965."

On the other hand, however, Prime Minister TANAKA is arguing for a "positive financial policy to keep the national economy growing and promote social welfare," according to his plan for remodeling of the Japanese Archipelago. He calculates that 750 million kiloliters of oil per year, or more than three times as large as the total amount of consumption at present, will be needed, if the Japanese economy is to continue growing at the annual rate of 10 per cent until 1985, or the last year of his plan. His plan for construction of networks of new railways and super highways has been formulated on the basis of such calculation. If the expected amount of crude oil is not to be secured, his plan for remodeling of the Archipelago will be shaken from the foundation.

In anticipation of such a situation, Prime Minister TANAKA talked about
countermeasures, especially those against the shortage of resources and energy
supply, with leaders of Britain, France and West Germany, when he recently
visited these three West European countries. He does not seem to have
expected, however, that Japan's domestic economy will be affected so seriously
as at present by the occurrence of the conflict in the Middle East, which
accounts for most of Japan's total oil imports, and the resultant limitation
of the crude oil supply from that area.

However, the Finance Minister's plan is not based on the above-mentioned standpoint. The feature point, new to this plan, is that, based on the present situation of the oil crisis, it tries to link it to economic development, standing on the position of the Arab side.

The Arab countries are said to be aiming at promoting industrialization, by earning foreign currencies through the full utilization of oil, the deposits of which are limited. However, in the field of techniques and the drawing up of projects, they lack able personnel. For this reason, the AICHI plan proposes to offer technical co-operation through the dispatch of a joint group, composed of staff members from advanced countries.

Finance Minister AICHI is desiring to call for the participation of the Soviet Union, which has strong influence over the Arab countries, besides such free countries like the U.S., Europe and Japan, as advanced countries to participate in this fund. The question lies in what responses the Arab countries will show to this idea. The Finance Minister, however, intends to sound out the possibility for the realization of the plan and for the participation of the main countries, starting with his talks with Secretary of State KISSINGER.

KH

YOMIURI (Full)

November 14, 1973

Measures for Settling KIM Incident Proposed by Japanese Side: Foreign Minister OHIRA's Diet Reply

At the Lower House Audit Committee meeting on the 13th, the KIM Dae Jung Incident, economic co-operation with the ROK, and the Japan-ROK Periodic Ministerial Conference were taken up. Susumu KOBAYASHI (JSP), Kosuke SHOJI (JCP), and Koichi SAKAI (Komei Party) pursued the Government sharply, saying, "We cannot understand the Government's having settled the Incident in a vague way and its posture for holding the Periodic Ministerial Conference."

In reply to this, Foreign Minister OHIRA said: "The settlement of the Incident was realized, because we thought that the plan, which the Japanese side considered in connection with the Incident this time, is a plan for the settlement of the Incident, which is worthy in the light of international practice." So saying, OHIRA clarified that the Japanese side showed to the ROK side the plan for the settlement of the Incident. Also, Foreign Ministry Economic Co-Operation Bureau Director General MIKANAGI said: "We are already holding talks with the ROK side on the schedule for holding the Japan-ROK Periodic Ministerial Conference. We are also holding consultations on the $15 million in aid, which we promised last year to extend and the implementation of which has been postponed due to the Incident."

KS

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AMERICAN EMBASSY, TOKYO
POLITICAL SECTION
TRANSLATION SERVICES BRANCH

JAPANESE MORNING PRESS HIGHLIGHTS

November 15, 1973

LEAD STORIES: The general outline of countermeasures to cope with the oil crisis discussed at the Cabinet meeting yesterday was given frontpage lead coverage in the Mainichi, Yomiuri, Nihon Keizai, Asahi and Tokyo Shimbun, with the captions in the respective papers saying as follows: "Oil Import Quota System Revived; ITI Minister to Have Broad Authority; Emergency Legislation for Consumption Restriction" (Mainichi), "Consumption Restrictions to Cope with Oil Crisis; General Outline of Countermeasures to Be Decided Tomorrow; To Appeal for Economizing of Electricity, Too; To Apply Trade Control Ordinance to Oil; Shortening of Store Hours for Department Stores and Super Markets; Gasoline Stations to Be Closed on Sundays and Holidays; To Restrict Use of Super-Highways by Private Cars" (Yomiuri), "General Outline of Countermeasures to Economize on Oil; Meeting of All Cabinet Members; Emergency Legislation and Promotion of People's Movement; 10-Percent Reduction of Electric Power, Too" (Nihon Keizai), "Oil Countermeasures to Start Tomorrow; Emphasis of Restrictions on 12 Types of Industries, To Decrease Ship and Plane Service, Too; Speed Below 80 Kilometers for Highways; MITI Plan" (Asahi), and "'All-Nation Setup to Cope with Oil Crisis; Department Stores to Shorten Store Hours; Mid-night TV Programs of Commercial TV Stations, Too: (Tokyo Shimbun).

The Sankei's lead story, carrying the caption "Stable Supply Requested to U.S. on Oil," took up the meeting yesterday between Foreign Minister OHIRA and Secretary of State KISSINGER. The headline story, which noted in its sub-caption that "Japan's Strained Situation Is Understood" and "All-out Efforts to Settle Middle East; Secretary KISSINGER," reported as follows:

U.S. Secretary of State KISSINGER, who arrived in Japan on the afternoon of the 14th, after mediating a Middle East peace and completing his visit to China, immediately held talks with Foreign Minister OHIRA at the Foreign Ministry for two hours and twenty minutes. At the meeting, Foreign Minister OHIRA explained the actual situation of our country, which has been placed in a difficult position due to the Arab side's "oil strategy," accompanying the Middle East conflict, and sought the co-operation of the U.S. side for the securing of a stable supply of oil by the majors (international oil capital). Toward this, Secretary of State KISSINGER showed understanding for Japan's position. The Foreign Minister also requested further U.S. efforts for the early settlement of the Middle East conflict, and expressed the intention that our country will also not take actions which may obstruct its early settlement.

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The talks were attended by Ambassador to the U.S. YASUKAWA, Foreign Affairs Councillor TOGO, and American Affairs Bureau Director General OKAWARA from the Japanese side, and by Ambassador to Japan INGERSOLL, Minister to Japan SHOESMITH and Deputy Assistant Secretary of State HAMEL [TN: phonetic] from the U.S. side.

Most of the talks were devoted to the Middle East question, and the Foreign Minister, first expressing respect for Secretary of State KISSINGER's efforts, leading up to the Middle East ceasefire this time, asked for his views regarding the present state and outlook for the Middle East conflict.

In response to this, Secretary of State KISSINGER explained that peace is moving forward steadily, and also said: "The U.S. is determined to make every possible effort for the settlement of the Middle East problem."

The Foreign Minister further explained in detail the difficult position in which our country is placed, such as the restrictions on oil supply to our country under the Arab side's. "oil strategy," accompanying the Middle East conflict. In his explanations, the Foreign Minister especially emphasized the following points: (1) Our country relies on the Middle East for more than 70 percent of its oil imports, and the large part of this is supplied through the majors (international oil capital); and (2) It is our country which is receiving the most serious effects from the oil-producing countries' restrictions on supply, and its political and social effects are very big. The Foreign Minister requested of the U.S. side its co-operation in regard to the securing of the stable supply of oil through the majors. It is said that Secretary of State KISSINGER showed understanding toward Japan's position.

It seems that, through these talks, Secretary of State KISSINGER also explained in detail the actual state of the Middle East countries' restrictions on supply to the consumer-countries, and the direction of the easing of such restrictions, and it is said that it offered considerably suggestive information for the Japanese side.

The Japanese side also seems to have received the strong impression that, although a speedy favorable change in the oil supply situation cannot be expected, for such reasons as that it will take about six months for the Middle East to reach a complete ceasefire, "the situation will slowly head in a more favorable direction" (Foreign Ministry source).

Middle East policies, which had become a question in connection with oil, were also discussed, and it seems that the Foreign Minister expressed the intention that Japan will not take an attitude which would run contrary to a Middle East peace and an early settlement of the conflict.

The KISSINGER concept and the U.S.-China talks were also discussed at the talks, and Secretary of State KISSINGER explained in regard to this concept that (1) the U.S. Government has not abandoned its plan for formulating a general declaration linking together Japan, the U.S. and Europe, and

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that (2) it strongly desires the participation of Japan in the declaration, in some form or other. It was agreed that consultations will be continued in the future on the question of Japan's participation, between Secretary of State KISSINGER and Ambassador YASUKAWA.

There were also explanations by Secretary of State KISSINGER on the contents of the U.S.-China talks, at the meeting. However, the Foreign Minister said, after the talks, that "they were not explanations which indicated a basic change (in U.S.-China relations), and I received the impression of its being an extension of the hitherto-followed line."

On the 15th, Secretary of State KISSINGER will have talks separately with Prime Minister TANAKA, Finance Minister AICHI and ITI Minister NAKASONE. (Full translation)

The Asahi, in a frontpage report, bearing the captions "Basic 'Middle East' Settlement Requested; Foreign Minister Has Talks with Secretary of State KISSINGER; Appeals on Difficult Position over Oil," reported the OHIRA-KISSINGER talks as follows:

U.S. Secretary of State KISSINGER visited Japan, on his way home from a visit to China, arriving at Haneda at 1:55 p.m. on the 14th, by a special plane, and held talks with Foreign Minister OHIRA at the Foreign Ministry for about two hours and a half, from 3:30 p.m. of the same day. A large part of the talks was devoted to the Middle East question, and Secretary of State KISSINGER explained in detail the following two points: (1) The present state of the Middle East conflict; and (2) Prospects for the future. Foreign Minister OHIRA, on his part, made a strong appeal on the fact that our country is placed in a difficult situation due to the Arab countries' slashing their oil supply, and requested further U.S. efforts for the basic settlement of the Middle East problem.

Secretary of State KISSINGER will have talks with Prime Minister TANAKA on the 15th, from 11:00 a.m., at the Prime Minister's Official Residence. On that occasion, the Government intends to explain Japan's position further, and promote the settlement of the Middle East conflict. At the same time, it is thinking of pushing diplomatic efforts for the securing of oil, to correspond to the economizing of resources within the country, with the U.S. side's "understanding" as a foothold.

At a press conference after the talks on the 14th, Foreign Minister OHIRA merely said that "I saw that Secretary of State KISSINGER has great enthusiasm for the realization of a Middle East peace and that he is determined to make every possible effort." However, as regards the detailed contents of the talks, he replied that "due to my promise with the U.S. side, I do not have the freedom to make them known."

However, it is thought that the Foreign Minister, at the talks, explained that "our country is placed in the position of receiving a large part of the oil it consumes through international oil capital (majors), and due to the Arab countries' restricting of supply, it is directly facing a grave situation, which will even affect key industries," and that he implied that our country is in a position where it cannot but incline more

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to the Arab side, compared with the neutral position it has hitherto maintained. Regarding this Japanese position, it is said that Secretary of State KISSINGER said that "it is completely understandable." However, it has not been clarified what response he showed concretely.

In regard to the pending KISSINGER concept, the said Secretary of State said, at the talks, that "even though there are some countries in Europe which tend to have doubts about Japan's participation, the U.S., on its part, has not abandoned the idea of formulating a general declaration, linking together Japan, the U.S. and Europe," and expressed the wish that Japan will also join the declaration, based on this concept, in some form or other. Toward this, Foreign Minister OHIRA expressed the hitherto-maintained Government posture that it is prepared to participate positively in it, if the conditions are prepared, and agreement was reached that Secretary of State KISSINGER and Ambassador to the U.S. YASUKAWA will hold concrete talks on this question in Washington, in the future. (Full translation)

The Mainichi carried a brief, page-two report, under the following caption: "To Note Carefully Future Development of Relations; Statement by a Foreign Ministry Source," noting as follows, in regard to the U.S.-China Joint Communique:

> Concerning the U.S.-China Joint Communique, a Foreign Ministry source observed on the night of the 14th that "the contents are general and basic, containing hardly anything new, concretely, and it will be sufficient for our country if it pushes its diplomacy toward China in the same way as in the past." However, in view of the fact that Secretary of State KISSINGER held talks with Premier CHOU En-lai and other top Chinese leaders for a considerably long time, and as he also had exceptionally lengthy talks with Chairman MAO Tse-tung, too, this same Foreign Ministry source noted this with attention, saying: "It is better to consider that the talks had contents which have not appeared in the Joint Communique, and how those contents will come to appear in the future should be watched."

As regards the Taiwan question, the same source said: "There is not anything especially new, and there are seen no indications of U.S.-China relations making sharp and sudden progress, but mutual trust has deepened." (Full translation)

The Tokyo Shimbun, in its "Kisha-no-Me" column, gave a brief description of a scene at the dinner party given by the Foreign Minister on the evening of the 14th, reporting as follows:

The talks between Foreign Minister OHIRA and U.S. Secretary of State KISSINGER that day were tense talks, over the Middle East question. However, the dinner party given by the Foreign Minister at a certain Japanese-style restaurant in Tsukiji, Tokyo, after the talks, was the complete reverse of this, and it was a very gay banquet with drinks. The leaders of Japan and the U.S. gave entertainment, displaying their hidden talents, with the Foreign Minister dancing to the tune of "Sendo Kouta (the boat-

The Yomiuri and Mainichi gave frontpage play to reports on the Secretary of State KISSINGER-Foreign Minister OHIRA talks, held yesterday, carrying the captions "Protraction of 'Oil' Implied -- Secretary KISSINGER-Foreign Minister OHIRA Talks" (Yomiuri); and "Japan's Position over 'Oil' Understood; Secretary KISSINGER Says at His Talks with Foreign Minister OHIRA" (Mainichi).

The Yomiuri's report said: Foreign Minister OHIRA held talks with US Secretary of State KISSINGER, who has visited Japan for the first time since his appointment to his present post, at the Foreign Ministry, for two hours and 20 minutes from 3:30 p.m. on Nov. 14. The Secretary of State has come to Japan by a special plane, which arrived at Haneda at 1:50 p.m., after completing his visit to China. The talks were held in the form of the Foreign Minister's asking the Secretary of State about the feelings of various countries in the Middle East and the US Government's prospects as to settlement of the situation, with the following points as the subject items: (1) The Middle East dispute and oil-supply restrictions by various Arab countries, (2) Sino-US relations, and (3) the KISSINGER concept. The greater part of the time was devoted especially to the Middle East dispute problem. At a press conference following the talks, Foreign Minister OHIRA stated, "I have been able to realize that the Secretary of State is enthusiastic about settling the Middle East problem, and that he intends not to stint any effort." With regard to the US Government's future measures and prospects toward Middle East peace, which were explained by Secretary of State KISSINGER, the Foreign Minister also said, "I do not have the power to clarify them."

Partly in view of the expressions, used by the Foreign Minister at his press conference, it seems that the Secretary of State explained that the Middle East situation does not necessarily warrant any optimism, and that it is impossible to obtain the prospects that oil-supply restrictions by the Arab oil-producing countries will be eased in the near future.

At the outset of the talks, the Foreign Minister paid his respects for the efforts toward peace, which have been made by Secretary of State KISSINGER since the Middle East War this time broke out, and the six-point agreement. The Foreign Minister also sought Secretary of State KISSINGER's explanations of the present situation in the Middle East and future prospects. After the Secretary of State gave explanations, the Foreign Minister explained in detail that our country is importing oil equivalent to the greater part of its consumption amount, that it is relying on Middle East oil for up to 70 percent or more of its consumption amount, that the greater part of Middle East oil is being supplied through the majors (international oil capital), that therefore, such supply restrictions are affecting Japan very seriously, and that this is a big political and social problem, which will also affect the key industries of our country. Thus, the Foreign Minister asked the Secretary of State to make greater efforts to settle the Middle East dispute, which has caused the enforcement of supply restrictions.

Secretary of State KISSINGER showed understanding toward the oil situation in Japan, but it seems that he did not clarify the problem of concrete co-operation.

In connection with the KISSINGER concept, Secretary of State KISSINGER said, "I hope that Japan will participate in it, in some form or other." It was also agreed that concrete consultations will be continued between the Secretary of State and Ambassador to the US YASUKAWA in the future. (Full translation)

The Mainichi's report said: US Secretary of State KISSINGER, who arrived in Japan on Nov. 14, held talks with Foreign Minister OHIRA at the Foreign Ministry, for about two hours from 3:30 p.m., that day, and exchanged views with him on such problems as the Middle East dispute, the oil problem, and the KISSINGER concept (new Atlantic Charter).

With regard to prospects for Middle East peace, the contents of the talks were not made public, partly because negotiations between Israel and Egypt are yet to be started. However, the Foreign Minister explained his impressions as follows: "I felt that Secretary of State KISSINGER has very great enthusiasm about settling the Middle East problem, and that he intends not to stint any effort for that purpose."

In connection with the Middle East War, the Foreign Minister also explained in detail the position of our country as to oil-supply restrictions by various Arab countries, and he sought America's understanding.

In particular, the Foreign Minister emphasized as follows:

(1) Our country is importing oil to meet almost all of its demand.

(2) Our country is relying on the Middle East for supply of 70 percent or more.

(3) Moreover, the greater part of the oil is being supplied through the majors (international oil capital). Therefore, our country is being affected very seriously by the supply restrictions by oil-producing countries. Furthermore, the supply restrictions are having substantial effects, not only on the daily life of the people but also on the key industries, and they are a serious problem, both politically and socially. In this connection, the Secretary of State expressed the view that Japan's position "can be understood well." He also expressed the following views: (1) The US has enthusiasm for settling the Middle East dispute, and it will not stint any effort; (2) in regard to the KISSINGER concept, the US thinks it necessary to cover Japan, the US, and Europe, and it is hoping for the participation of Japan; and (3) at the Sino-US talks, held earlier, there was no basic change in relations between the US and China, and the hitherto-maintained line will probably be extended. (Full translation)

The Tokyo Shimbun frontpaged a report, with the caption reading: "Restriction Legislation to Be Handled Carefully: Chief Cabinet Secretary NIKAI DO." The report said: At a press conference following the consultative conference of Cabinet members in charge of emergency oil countermeasures, held on the afternoon of Nov. 14, Chief Cabinet Secretary NIKAI DO stated as follows:

1. A consultative conference of Cabinet members in charge of oil countermeasures will be held again on the 15th, with LDP representatives attending, too, and the general outline of emergency oil crisis countermeasures will be decided at the Cabinet meeting, slated for the 16th. After that, ITI Minister NAKASONE will meet representatives of the various Opposition Parties, and will seek their co-operation. The LDP will also ask representatives of various circles for co-operation.

2. Also, at the Prime Minister TANAKA-Secretary of State KISSINGER talks to be held on the 15th, following the Foreign Minister OHIRA-Secretary of State KISSINGER talks, discussions will be conducted on the Middle East situation, including the oil problem. Moreover, the LDP seems to be studying a plan to dispatch a special envoy to the Arab oil-producing countries.

3. With regard to oil-restriction legislation, if it is not handled carefully, it will also result in causing such confusion as the buying up of oil. Efforts must be made to formulate prudent countermeasures comprehensive and to cope with the situation carefully. (Full translation)

The Nihon Keizai gave top page-two play to the talks between US Secretary of State KISSINGER and Foreign Minister OHIRA, under the captions "Understanding on Oil Situation in Japan; Detailed Explanations on 'Middle East,' Too -- Secretary KISSINGER Holds Talks with Foreign Minister OHIRA." The report said:

Foreign Minister OHIRA held talks with US Secretary of State KISSINGER, who came to Japan on the afternoon of the 14th, at the Foreign Ministry from 3:30 p.m. that day, and exchanged opinions with him on the Middle East problem, the so-called KISSINGER concept, and Sino-US relations. The greater part of the time for the talks was spent on peace in the Middle East, which is a focal point, and the problem of the oil crisis in that connection. Secretary KISSINGER gave detailed explanations on the present situation of the Middle East problem and the prospects for the future. Foreign Minister OHIRA stated the position Japan is placed in concerning the oil crisis. In reply, Secretary KISSINGER stated to the effect that Japan's position is understandable. Besides, Secretary KISSINGER expressed his views that he hopes to the last for Japan's participation in the KISSINGER concept. Secretary KISSINGER will call on Prime Minister TANAKA at his Official Residence to hold talks with him at 11:00 a.m. on the 15th and will also meet Finance Minister AICHI and ITI Minister NAKASONE.

The OHIRA-KISSINGER talks that day were held for two hours and 20 minutes from 3:30 p.m. The greater part of the time for the talks was spent on the Middle East problem. This is because Foreign Minister OHIRA sought detailed explanations from Secretary KISSINGER, from the standpoint that he needs to grasp the situation, such as how to cope with the serious oil crisis, which occurred with the Fourth Middle East War as an occasion, and above all, an outlook for peace first. Secretary KISSINGER reportedly explained in detail the present situation of the Middle East problem, the US policy for the future, and prospects for peace. In reply, Foreign Minister OHIRA reportedly said that [Japan] will not run counter to the US efforts for peace in the Middle East.

From Secretary KISSINGER's explanations, the Foreign Minister seems to have received the impression that peace in the Middle East is steadily progressing. As to the concrete contents, however, Foreign Minister OHIRA said, at his press conference after the close of the talks, that "I cannot clarify them because this is a stage where Egypt and Israel are to hold negotiations," and he did not go any further than to give abstract explanations, as follows: "I received the impression that Secretary KISSINGER has great enthusiasm toward an early, peaceful settlement of the dispute and that, for this purpose, he is determined to make all possible efforts."

Foreign Minister OHIRA expressed his respect to Secretary KISSINGER for the efforts the Secretary has made for the settlement of the Middle East War and for the results as seen in the six-point agreement over peace. At the same time, in connection with this problem, Foreign Minister OHIRA explained to Secretary KISSINGER the Japanese position and situation

centering on the oil crisis. The Foreign Minister stated the present
situation in Japan that it imports most of the oil it uses, that it depends
upon the Middle East for more than 70% of those oil imports, and that the
greater part of them are through the majors. He emphasized that the effects
of the reduction in oil supply are extremely great in the political, economic,
and social fields. Secretary KISSINGER said, "Japan's position is
understandable." According to the Foreign Minister, no request was made
of the US side for some measures or other on the oil problem.

With regard to the KISSINGER concept, Foreign Minister OHIRA said
that it was learned, as a result of Prime Minister TANAKA's visit to Europe,
that the European nations concerned are positive [sic] toward Japan's
participation. The Foreign Minister again sought the US Government's views
on Japan's participation in the KISSINGER concept. In reply, Secretary
KISSINGER said, "I have not given up completing the KISSINGER concept."
He clarified his view that he strongly hopes that Japan will participate
in it in some form or other. It was decided that consultations will be
continued between Secretary KISSINGER and Ambassador to the United States
YASUKAWA in the future. (Full translation)

The Tokyo Shimbun gave prominent frontpage play to the talks held
yesterday between visiting US Secretary of State KISSINGER and Foreign
Minister OHIRA, carrying the captions "Favorable Turn of 'Oil' Cannot Be
Expected, Even If Middle East Dispute Is Settled; US Secretary of State
Expresses Views to Foreign Minister; Understanding Shown toward Actual
Situation in Japan." The report said:

> Foreign Minister OHIRA and US Secretary of State KISSINGER held talks for two hours and 20 minutes centering on the Middle East War and the problem of uneasiness about oil, at the Foreign Ministry from 3:30 p.m. on the 14th. The Foreign Minister requested that the United States strengthen its efforts further for an early, total settlement of the Middle East War. Secretary KISSINGER promised that he "will not stint all possible efforts for settlement."

However, Secretary KISSINGER reportedly explained an extremely
severe outlook, as follows: (1) Even if the dispute may be settled, it
will not follow that oil supply from the Arab nations will be eased
immediately; (2) the crude-oil price rise will continue even after the
settlement. For this reason, it has become clearer that the shortage of
oil and the high price of crude oil will continue for some time to come
and that they will have serious effects upon industries and the people's
livelihood for a long period of time. Foreign Minister OHIRA appealed
on the actual situation where our country is importing the greater part of its
oil from US-affiliated international oil capital (majors), and requested
the US Government's co-operation so that oil capital will not discriminate
against Japan. In reply, Secretary KISSINGER reportedly "showed
understanding."

At the talks, the Foreign Minister first highly appreciated the efforts Secretary KISSINGER has been making for the settlement of the Middle East War, such as the Egypt-Israel cease-fire, and asked what kind of outlook the United States has for the settlement of the Middle East War.

Secretary KISSINGER's explanations on it have not been clarified, but when the statements by the sources concerned are summed up, Secretary KISSINGER said, "The United States is steadily continuing efforts, and an outlook is not dark. Japan is requested not to do anything that will obstruct the US efforts for peace." Thus, the Secretary reportedly reminded [Japan] tacitly of its inclination toward a policy leaning toward the Arabs.

It seems that, in this connection, the Secretary said that the amount of oil supply and prices will not be eased immediately after the realization of peace. It became clear that the present extreme shortage of crude oil will continue for some time to come.

The Foreign Minister explained that our country depends upon the Middle East for more than 80% of its oil imports and that it depends upon US-affiliated international oil capital for the most part. He appealed, "If the Arab nations' export control toward our country is prolonged, industries will be paralyzed and social uneasiness may possibly occur. We wish to seek the US Government's co-operation, so that international oil capital will not discriminate against our country." Secretary KISSINGER reportedly "showed understanding" (Foreign Minister).

However, whether the amount of oil supply to our country by US-affiliated oil capital will increase under the influence of the US Government or not is not clear.

On the other hand, as for the KISSINGER concept (new Atlantic Charter), Secretary KISSINGER clarified his attitude of seeking Japan's participation, saying, "The United States has not given up forming a general declaration linking Japan, the United States, and Europe together. I strongly hope that Japan will participate in it in some form or other." (Full translation)

The Tokyo Shimbun frontpaged a commentary on the KISSINGER-OHIRA talks, captioned "Will Become Pro-Arabs, If Settlement Is Postponed; Foreign Minister 'Reserves' Policy Change?" The commentary said:

> The talks on the 14th between Foreign Minister OHIRA and US Secretary of State KISSINGER, the leading actor in the mediation of the Middle East War, became "oil talks," as anticipated, with the greater part of two hours and 20 minutes spent on the Middle East problem. The Sino-US problem, etc., looked poorly before the oil problem, and (Foreign Minister OHIRA) said, "At any rate, we did not have time..."

The kernel points of the talks were two -- (1) When will the Middle East War, which became the origin of oil control, be settled?, and (2) Even if the War is settled, will the oil problem be settled? It seems that

the Foreign Minister seriously listened to the Secretary's views on the two
points. It is fully anticipated that in connection with these two points, the
Japanese side requested the following: "As a total settlement policy which
will have favorable effects also upon the oil problem, it is requested that
the United States curb Israel and map out a settlement 'leaning toward the
Arabs' which will convince the tough elements of the Arabs to some extent."

Because Japan is taking a neutrality policy on the Middle East problem, and even from the viewpoint of international faith, Japan cannot easily map out a policy change independently for "leaning toward 'abura' (oil)," rather than "leaning toward the Arabs," because of the difficult oil situation.

At the talks, however, the US side said that "Although the United
States will not stint all possible efforts on the Middle East problem, it
is not in a position to give commands to each nation to take its own position."
The Foreign Minister said, "Japan will decide on its oil policy itself."
From this, there has appeared the view that the Foreign Minister "reserved"
the position that although Japan will observe its neutral position for some
time to come, it will have to take a pro-Arab foreign policy, in case
settlement of the Middle East dispute is greatly prolonged and the oil
situation becomes acute."

What political course will be mapped out at the TANAKA-KISSINGER
talks on the 15th? The results thereof will create repercussions at home
and abroad. (Reporter Shuichi OBAYASHI, Political Section)
(Full translation)

NIHON KEIZAI (Full)

Eve., November 15, 1973

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

U.S. Secretary of State KISSINGER, who is visiting Japan for the first time since he assumed the post of Secretary of State, called on Prime Minister TANAKA at the Prime Minister's Official Residence at 11:00 a.m. on the 11th, and had talks with him. The talks were also participated in by Foreign Minister OHIRA, Foreign Vice Minister HOGEN, Ambassador to the U.S. YASUKAWA, and American Affairs Bureau Director General OKAWARA from the Japanese side, and by American Ambassador to Japan INGERSOLL and others, from the U.S. side. At the talks, the central subject matter was the Middle East question, and Secretary of State KISSINGER, who had recently held talks with the top leaders of various Arab countries, conveyed the U.S. side's judgment in regard to the present state of the Middle East and the views of the oil-producing countries. In response to this, Prime Minister TANAKA explained the situation in our country, suffering from a grave shortage of oil, and it is thought that he conveyed his intention to the U.S. side that our country has no choice but to strengthen relations with the Arab countries. Before these talks with the Prime Minister, Secretary of State KISSINGER held talks with Finance Minister AICHI on the morning of the same day. Also, from 1:00 p.m. of the same day, he is slated to have talks with ITI Minister NAKASONE.

Secretary of State KISSINGER indicated the outlook that the Arab oil-producing countries are not likely to agree easily to the easing of the oil supply, even after the settlement of the conflict, at his talks with Foreign Minister OHIRA on the 14th. At the talks with Prime Minister TANAKA, it seems that he indicated the same outlook and also reported on the Middle East War.

Prime Minister TANAKA is thought to have conveyed to the Secretary of State the responses of the European countries, which the Prime Minister visited some time ago, to the KISSINGER concept, which he obtained on that occasion. It is thought that Secretary of State KISSINGER strongly sought the Japanese side's co-operation in this question. Secretary of State KISSINGER is slated to visit the ROK after his visit to Japan, and is planning to have talks with President PARK. It is thought that at the talks with the Prime Minister, there was also exchange of views on the circumstances of the KIM Dae Jung Incident and on Japan-ROK and U.S.-ROK relations.

U.S. Secretary of State KISSINGER, who is now visiting Japan, met with Finance Minister AICHI at Hotel Okura, in Akasaka, Tokyo, and exchanged views with him for about one hour, over breakfast, on the oil, international currency, Japan-U.S. economic relations, and the Middle East questions. At the meeting, Finance Minister AICHI explained that, "if the oil crisis continues as it is now, it is thought that the Japanese economy will be considerably affected." Toward this, Secretary of State KISSINGER said: "The impressions I received and information which I have concerning the present state of the Middle East and on the posture of the Arab oil-producing countries will probably be clarified at my talks with Prime Minister TANAKA."

However, at a press conference following the talks, Finance Minister AICHI said: "Secretary of State KISSINGER also seemed to have considerable confidence (on the oil question)." Judging from this statement, it is thought that there was some indication in regard to the U.S. outlook for the oil crisis, at the talks that day.

- 12 -

TOKYO SHIMBUN (Full)

Eve., November 15, 1973

Appeals for Breaking Oil Crisis; Settlement of Middle East War at Earliest
Possible Date -- Prime Minister Holds Talks with Secretary KISSINGER

Visiting US Secretary of State KISSINGER held talks separately with Finance Minister AICHI, Prime Minister TANAKA, and ITI Minister NAKASONE, from morning into afternoon on the 15th. At this series of talks, including his talks with Foreign Minister OHIRA the day before, the Middle East War and the oil crisis became the biggest focal point. On the basis of the results of these talks, the Government will re-study the position Japan should take in diplomacy toward the Arabs and on oil strategy. Incidentally, Secretary of State KISSINGER will leave for Seoul in the ROK aboard a special plane from Haneda at 8:00 a.m. on the 16th.

The talks between Prime Minister TANAKA and US Secretary of State KISSINGER were held at the Prime Minister's Official Residence from 11:00 a.m. on the 15th. They exchanged views for about an hour and a half centering on the problem of the oil crisis in Japan as well as on the Middle East War. At the talks, Prime Minister TANAKA pointed out that if a settlement of the Middle East War is delayed and the oil crisis is prolonged, there will be worries that the solidarity relationship among advanced industrial nations of the West will collapse over the Middle East policy centering on the securing of oil. The Prime Minister reportedly requested that the United States, which has influence upon both Israel and the Arab nations, promote a total settlement of the Middle East War at the earliest possible date in the direction of avoiding the oil crisis.

In reply, it seems that Secretary KISSINGER understood Japan's position, explained the present situation of and an outlook for mediation of the Middle East War, and showed a posture that the United States will not stint all possible efforts for the settlement of the problem.

Besides, it appears that political talks were held at their meeting on the KISSINGER concept and the development of Sino-US relations.

The talks 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 from the US side.

Secretary KISSINGER, after this, held talks with ITI Minister NAKASONE at the Hotel Okura from 1:30 p.m.

MT

TOKYO SHIMBUN (Full)

Eve., November 15, 1973

Concrete Co-Operation Not Promised; Increase in Oil Supply; Talks Also
with Finance Minister -- US Secretary of State KISSINGER

The talks between US Secretary of State KISSINGER and Finance Minister AICHI were held for about an hour at the Hotel Okura in Akasaka, Tokyo, from 7:30 a.m. on the 15th. Opinions were exchanged on the trends of the Japanese and US economies, a currency reform, and the oil problem. At the talks, Finance Minister AICHI stated the actual situation of the economy to the effect that our country's recent balance of international payments in trade and capital transactions has changed to a deficit keynote and that prices are continuing large-scale rises. He also said that there are worries that the reduction in oil supply, accompanying the Middle East

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

Consultations Centering on Oil; Understanding of "Leaning toward Arabs"
Requested -- Talks between Prime Minister and Secretary KISSINGER

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 -

AMERICAN EMBASSY, TOKYO
POLITICAL SECTION
TRANSLATION SERVICES BRANCH
INQUIRIES: 583-7141 EXT 426

DAILY SUMMARY OF JAPANESE PRESS

Thursday, November 15, 1973

EDITORIALS

<table><tr><td>Establish Independent Policy Toward Middle East</td><td>(Sankei)</td><td>1</td></tr><tr><td>Turn Misfortune, Oil Crisis, into Blessing</td><td>(Sankei)</td><td>2</td></tr><tr><td>Whereabouts of Politics with Lost Confidence</td><td>(Tokyo Shimbun)</td><td>3</td></tr><tr><td>Our Hopes for UN Discussions on Korean Problem</td><td>(Mainichi)</td><td>4</td></tr><tr><td>Emergency Oil Countermeasures Start Moving</td><td>(Tokyo Shimbun)</td><td>6</td></tr></table>

ARTICLES

LDP "Storm Troopers" (Seirankai) Clash Severely with Prime Minister; Yelling at Each Other, Forgetting Commodity Prices; "Arbitrary and Dictatorial" Stings TANAKA to Rage (Sankei) 7

Saudi Arabia Pressing for Japan's Decision on Pro-Arab Line; Expectations on Checking U.S.; Irritated by Irresolute Attitude; Emphasized by Special Advisor to the King; Noting KISSINGER Visit to Japan, First of All (Yomiuri) 9

Keidanren Leaders Make Request to Prime Minister for Pro-Arab Policies (Yomiuri) 10

"Bridge Formula" Means Divisionist Retreat; Rationalization of Rejection of Joint Struggles; "Constitution Argument" Not Logically Consistent; Anti-Communist Policy at Bottom -- Chairman MIYAMOTO's Criticism of TAKEIRI Statements on Problem of Joint Struggles in Upper House Election (Akahata) 11

ITI Minister to Send Letters Seeking Co-operation from Large Consumer Enterprises (Asahi) 13

Personnel Reshuffle and LDP (Part 1) (Asahi) 14

Government Heading Toward Grave Decision; Oil Diplomacy; Cannot Help U.S. "Displeasure"; To Explore Pro-Arab, Independent Policy; Disappointed with OHIRA-KISSINGER Talks (Yomiuri) 17

How to Cope with Energy Crisis (Part 3) (Nihon Kogyo) 18

Enterprises with Tie-ups with Taiwan Form Friendship Group (Mainichi) 19

"Aim Is to Protect Assets"; Enterprises Investing in Taiwan Establish New Organization; 40 Companies Taking Part; Fear of Irritating China, Too (Asahi) 20

Prime Minister Appeals on Economized Type of Living and Shift of Judgment of Values at Inaugural General Meeting of Social Economy National Council (Nihon Keizai) 21

To Lay Stress on Anti-LDP Struggles; Agreement with JCP to Be Difficult: Komei Party Chairman TAKEIRI on Co-Operation in Upper House Election (Nihon Keizai) 22

(over)

<table>
  <tbody>
    <tr>
      <td>LDP Cannot Respond on Opposition Party Side's Demand for Prime Minister's Speech at Ordinary Diet Session to Be Convened on December 1</td>
      <td>(Yamato Shimbun)</td>
      <td>24</td>
    </tr>
    <tr>
      <td>Weather Conditions and Customs Ignored; Dissatisfied with "Japanese Way of Dealing" in Pre-Fabricated Houses to North Vietnam</td>
      <td>(Tokyo Shimbun)</td>
      <td>25</td>
    </tr>
    <tr>
      <td>MITI Approves Emergency Import of General Coal; Will Check into Liberalization, Too</td>
      <td>(Yomiuri)</td>
      <td>26</td>
    </tr>
    <tr>
      <td>EPA Monthly Economic Report for September</td>
      <td>(Nihon Keizai)</td>
      <td>27</td>
    </tr>
    <tr>
      <td>ITT to Have 100% Subsidiary Company in Japan by Evading Foreign Capital Investment Law; Swedish Company to Be Taken over</td>
      <td>(Yomiuri)</td>
      <td>29</td>
    </tr>
    <tr>
      <td>Foreign Minister OHIRA as Evasive as Ever at Press Conference after Talks with KISSINGER</td>
      <td>(Nihon Keizai)</td>
      <td>30</td>
    </tr>
    <tr>
      <td>Leaders of Business Circles Request Diplomacy Leaning to the Arab Side to Prime Minister TANAKA; Also Dispatch of "Resources Ambassador"</td>
      <td>(Nihon Keizai)</td>
      <td>30</td>
    </tr>
    <tr>
      <td>"November Personnel Reshuffle" Becomes Delicate; Sense of Crisis Mounts within LDP; Commodity Prices Before Reshuffle</td>
      <td>(Tokyo Shimbun)</td>
      <td>31</td>
    </tr>
    <tr>
      <td>KISSINGER-PARK Talks Tomorrow; To Visit ROK on His Way Home</td>
      <td>(Asahi)</td>
      <td>32</td>
    </tr>
    <tr>
      <td>Secretary of State KISSINGER to Visit ROK Tomorrow</td>
      <td>(Nihon Keizai)</td>
      <td>32</td>
    </tr>
    <tr>
      <td>Reshuffle, Too, Waiting for KISSINGER; Unless Outlook Is Formed on Oil Crisis</td>
      <td>(Asahi)</td>
      <td>33</td>
    </tr>
    <tr>
      <td>Toward Normalization of Diplomatic Relations with China through Piling up Operational Exchange -- Statement by US High Official Source</td>
      <td>(Yomiuri)</td>
      <td>34</td>
    </tr>
    <tr>
      <td>Groups of Tuna-Fishing Ships "Wandering" Fishing Areas to Be Shifted to North Atlantic; 10-Odd Ships from Yaizu and Other Areas; Due to Suspension of Refueling by South Africa</td>
      <td>(Sankei)</td>
      <td>35</td>
    </tr>
    <tr>
      <td>"We Request Renovation of People's Intentions"; FUNADA Faction Reaches Agreement</td>
      <td>(Asahi)</td>
      <td>35</td>
    </tr>
    <tr>
      <td>Full-Fledged Home-Produced Missiles to Make Their First Debut; Effective for Beachhead Operations; Cost of Development Is ¥1 Billion -- JDA</td>
      <td>(Yomiuri)</td>
      <td>36</td>
    </tr>
    <tr>
      <td>Science and Technology Agency Decides to Promote Emergency Research to Develop New Energy, to Cope with Oil Shortage</td>
      <td>(Nikkan Kogyo)</td>
      <td>37</td>
    </tr>
    <tr>
      <td>Meaningful As "Firming up of Ground" between US and China; KISSINGER Visit to China; Rather Than Concrete "Results"</td>
      <td>(Yomiuri)</td>
      <td>38</td>
    </tr>
    <tr>
      <td>All Results of Talks Not Incorporated; In "Sino-US Communique" -- Foreign Ministry Source's View</td>
      <td>(Yomiuri)</td>
      <td>39</td>
    </tr>
    <tr>
      <td>Thick Pipeline toward Normalization of Diplomatic Relations</td>
      <td>(Nihon Keizai)</td>
      <td>40</td>
    </tr>
  </tbody>
</table>

EDITORIALS

SANKEI (Full)

November 13, 1973

Japan has been driven into an awkward position by the "oil offensive" started by the Arab nations. It is good for Japan to "correct the orbit" in favor of a pro-Arab policy. It is essential for Japan, however, to exercise sufficient self-reflection upon its easy-going foreign policy toward the Middle East and revise it fundamentally from the standpoint of securing resources by diplomacy, prior to such a switchover.

It deserves attention that the demands of Arab nations on Japan are showing signs of escalation recently. The Government has been trying to clarify a pro-Arab stand of Japan, because it has become difficult for Japan to secure the necessary supply of oil from the Middle East while maintaining a "neutral stand" toward the conflict in that area. It handed, for instance, the ambassadors of 10 Arab nations in Japan a "note verbale concerning the conflict in the Middle East" clarifying Japan's "positive opposition to territorial aggrandizement by force." Also Chief Cabinet Secretary NIKAIDO later explained Japan's position reflected in the same note verbale. The Arab nations, however, do not seem to have been completely satisfied with the attitude shown by Japan. Some of them are demanding that Japan sever diplomatic ties with Israel at once, to take a definitely pro-Arab stand.

For moral reasons, however, it is impossible for Japan to sever diplomatic relations with Israel only because of the necessity of securing oil. Moreover, Japan obtains most of the oil supplies from abroad through the majors of the US, and maintains close ties with the US in regard to defense and trade. It is not in a position, therefore, to aggravate relations with the US by accepting the demand of Arab nations unconditionally.

On the other hand, however, it is necessary to notice that Japan and the US do not necessarily share common interests in their efforts to secure oil resources. Japan relies on the supply from the Middle East for more than 80 per cent of the total quantity of oil it needs, while the rate is less than 10 per cent in the case of the US. The US, therefore, has not been hit very seriously by the "oil war" started by the Arab nations, while Japan and European countries have suffered a severe blow. It is because of such circumstances that the West European countries have revealed their unwillingness to co-operate in the US policy of aiding Israel in the recent Middle East War, leading to the spread of a rumor about a "draft" between the US and West European nations.

It is necessary, therefore, for Japan to establish its own policy toward the Middle East. Japan, however, cannot take such a strong attitude toward the US as that of the West European countries which are backed by the European Community. It becomes necessary, therefore, for Japan to conduct its foreign policy toward the Middle East, in a direction to maintain friendly relations with both the oil-producing nations of the Middle East and the US which lies behind the majors. On the occasion of US State Secretary KISSINGER's visit to Japan, the Government should begin working hard on the US side for early settlement of the conflict in the Middle East which may cause a crack in the unity of free nations. It should also check into the possibility of holding an international conference for solution of the oil crisis, with the participation of representatives of the oil-producing countries, consumer nations and the majors.

In dealing with the Arab nations, Japan should exert all efforts to have its difficult position understood by the Arab nations. It is good for Japan to send a "big shot" to these nations as a special envoy, to make it clear that Japan is not unfriendly toward them. In making such efforts, however, Japan should grasp the complicated circumstances in the Arab world as a whole, and decide what contribution it can make to the economic construction in the Arab countries, without discrimination against the countries without oil resources. The Foreign Ministry had failed even to foresee the occurrence of the recent Middle East War. Japan must make a new departure in the field of Middle East diplomacy, with the realization that it cannot make successful diplomatic efforts to secure resources with such an easy-going attitude.

HF

- 4 -

Is it possible to declare decisively that politics and politicians have obtained the full confidence of the people in our country? Prime Minister TANAKA stated in the spring that prices would calm down in the fall. He has also recently insisted obstinately that our country is not suffering from inflation, and criticized the people's consumption live-lihood, regardless of his lack of policy. Regardless of the Government-Ruling Party leaders' meeting, which discussed the consumer price of rice, the three top leaders said mutually that, "As to the rate of raise in the consumer price of rice, the raise of 13.8% is a better figure than 13.7%", while playing golf. As for this price of rice, at the elections in the big cities held in the summer, the LDP appealed that, "The Government has raised the producer price of rice, but the consumer price of rice..." With this, is it possible for the Government to maintain the people's confidence in politics?

At this time when due to soaring prices and the shortage of energy, both the economy and the people's livelihood are subjected to serious ordeals, what will come to be brought about by the further deepening of mistrust in politics and politicians among the people? It is not possible for us to view that the crisis in the US is a matter of no concern to us.

SO

MAINICHI (Full)

November 13, 1973

## Our Hopes for UN Discussions on Korean Problem

The UN General Assembly will start discussions on the Korean problem from the 14th. As it is said that the Korean problem will become the biggest focal point at the 28th UNGA session, we express, first of all, our hope that discussions at the UNGA session will become constructive discussions for the Korean situation in the future.

The situation concerning relationships between South and North Korea and the UN has undergone big changes in the past one year. One change is that the Korean Democratic People's Republic (North Korea) was admitted into WHO, a UN special organ, in May, this year, and responding to this, North Korea established its Resident Observer's Office within the UN. This shows the fact that an increasing number of nations have come to establish diplomatic relations with North Korea too, while having recognized the ROK, and also that North Korea's international position is becoming higher.

Responding to these changes in the situation, the ROK Government, in President PARK's announcement in June, clarified its policy that the ROK, on its part, will not oppose seating itself together with North Korea at international organizations, and also in its announcement issued on the occasion of Light Recovery Day in August, it called upon North Korea to join the UN simultaneously. This is a historic policy change for the ROK, which had not yielded, even an inch, on its position of being the "sole, legitimate Government representing the Korean Peninsula," by dint of the UNGA Resolution of 1948. This policy change was appreciated both at home and abroad as a flexible diplomatic policy responding to changes in the international current. The US and Japan, which belong to the pro-ROK nations group, have decided to assume a comparatively flexible posture.

Nations in support of the ROK had succeeded, until last year, in adopting the formula for shelving discussions on the Korean problem at the UNGA for one year. This year, however, based on their judgment that it will be difficult to have this formula adopted at the UNGA session, they proposed their own resolution. Its purport is the clarification of approval for disbandment of the UN Commission for Unification and Reconstruction of Korea, which disbandment nations in support of North Korea have been calling for, and the clarification of their hope for North Korea's and South Korea's admission into the UN, with the spirit of universality of the UN as the basis.

On the other hand, a group of about 20 nations in support of North Korea has submitted a resolution, which calls for the suspension of UNCURK activities, a ban on the use of the UN flag by UN forces in the ROK, withdrawal of all foreign military troops, and respect for the North-South Joint Communique in July, last year.

At the First Committee (Political Committee) of the UNGA, which will open from tomorrow (November 14), discussions will be conducted on these two resolutions. We can probably recognize "progress" in the point that discussions will be conducted on the Korean problem, to be taken part in by the delegates from both North Korea and South Korea, for the first time in the history of the UN. It is true that the Korean problem is a difficult problem in our time. It seems the North's and the South's admission into the UN, which the group in support of the ROK is calling for, is a realistic settlement measure in the wake of East and West Germans. But, is there not the danger that this plan may perpetuate the situation of two Koreas? We cannot reject the doubt as to whether the withdrawal of foreign troops from the South will quicken unconditionally peaceful unification. This is because distrust between the North and the South, which has been bred for 20 some-odd years in the past, is so deep-rooted.

However, although slightly, we can recognize progress in the ROK problem as to the substantial aspect too, as is seen in the point that virtual agreement has already been reached on the disbandment of UNCURK. Besides this, the fact that the nations in support of the ROK have generally softened their attitude, permits us to harbor hopes, to some extent, for discussions to be conducted in the future. It can be said that the nations in support of the ROK were compelled to soften their attitude, in view of the fact that the Non-Aligned Nations Summit Conference held in Algiers in September clarified, in its Resolution, its position of supporting North Korea, and that, on the other hand, the evaluation of the ROK has declined, even among nations in support of the ROK, due to the KIM Dae Jung Incident.

At any rate, we think that discussions on the Korean problem at the UNGA should not fall into sterile discussions whereby both sides denounce each other. Especially the position of the Mission to the UN of our country, which is deeply connected with the Korean problem and also which has great influence on the same problem, is important. Our Government has already become a co-sponsor nation of the resolution, which was submitted by the pro-ROK group. As regards Japan's position, Japan should not deviate from the great premise that it will help promote peaceful and independent unification of North Korea and South Korea.

In this sense, it is regrettable that the Red Cross Society talks and the dialogue at the North-South Co-ordination Committee between the North and the South have been suspended since June, this year. What we want to stress is that realization of "one Korea" should be left to independent talks between the North and the South, which are the parties concerned.

KS

The second point is that with regard to the restraint on consumption, the Government has extended the objects, in which the Government will intervene by means of its administrative guidance, to not only such industry circles as electric power, iron and steel, and petro-chemicals, but also even to the fields of aviation and TV broadcasting. As the first-stage program, the Government aims at making a 10% reduction, uniformly. However, in and after the second-stage program, whereby the Government will further strengthen its controls, there will be a need to classify the rate of reduction in proportion to the degree of non-essential industries.

As for the measures, which we want the Government to add, they are powerful administrative guidance over prices and thorough-going controls over cornering, hoarding or the rise in prices, which will be implemented, taking advantage of such a situation. It seems that the Government intends to incorporate price controls into the Bill and the Government bases itself on the judgment that as to controls over the latter, it is possible to cope with it fully under existing laws. However, in actuality, as to both traders and consumers, the abnormal psychology toward shortages of goods is whirling around, centering around toilet-paper, sugar, wheat flour, and soap, as well as kerosene. This is a problem, which should be coped with by the Government promptly.

The key to the success or failure of emergency countermeasures is whether or not the Government will be able to obtain the united co-operation of the whole people and the Ruling and Opposition Parties. For this purpose, the TANAKA Cabinet should make all-out efforts to eliminate the people's mistrust in politics. On the other hand, it is desirable that the Opposition Parties will also extend forward-looking co-operation, including the calming of the people's turbulence, instead of pursuing the political responsibility of the TANAKA Cabinet alone.

SO

## ARTICLES

SANKEI (Full)

November 14, 1973

"Because you are arbitrary and dictatorial, even the Cabinet members and the three Party officers cannot say anything on the commodity prices question." "Who said that! Who said such a thing!" Loud voices, raised in anger, pierced even the heavy wooden door of the big dining room, far in the interior of the Prime Minister's Official Residence. A parting abuse -- "To think that that guy is the Prime Minister ..." -- was flung out by the Diet members, who finally walked out of the room in anger. The meeting held at noon between the Prime Minister and "Seirankai," a group made up of the younger Diet members belonging to the right-wing of the LDP, on the 13th, to discuss immediate commodity price problems, ended in rupture. Apart from the question of whether it was due to the sharp sense of frustration at the shocking inflationary crisis, or the fierce confrontation on the factional level, it was a much too sad and futile ending of a verbal battle between the two sides, which "neglected politics" completely, for the people who are earnestly hoping for a settlement of the commodity prices question, as quickly as possible.

The consultation meeting, held for one hour and a half at the Prime Minister's Official Resident on the afternoon of that day, was attended by 17 Lower and Upper House members of Seirankai, including Ichiro NAKAGAWA, Masayuki FUJIO and Kazuo TAMAKI.

- 7 -

- 10 -

Petroleum and Mineral Resources Vice Minister FAISAL (King FAISAL's son) calmly criticizes Japan, saying: "We are grateful for the role played by Japan to have Resolution 242 adopted. However, should not a country which pushed through the Resolution bear a sense of strong responsibility for its implementation, too?" After requesting, as a concrete move, "Japan's putting pressure on such big powers as the U.S. and the Soviet Union, for the implementation of the Resolution," warned as follows: "If the problem between Japan and Saudi Arabia is left as at present, the problem will be further escalated seriously." The Vice Minister is already promised the post of the next Petroleum Minister. Therefore, viewed from a long-range standpoint, his warning cannot be disregarded.

It can be considered that these statements by top Government leaders are still calmly restrained. However, at a slightly lower level, for example, Government officials whom Japanese persons connected with economic co-operation see on actual business matters, are more frank in expressing their dissatisfaction, saying, "Why is Japan acting so irresolutely?" and "Is not Japan making light of Saudi Arabia?" It seems that a mood which is near to anti-Japanese sentiment is also mounting. King FAISAL is coming to attach importance to the views of the administrative-level Government officials, too. In that case, it will mean that this sense of frustration and dissatisfaction, swirling in the Saudi Arabian Government as a whole, will come to be reflected in the form of Saudi Arabia's severer policies toward Japan, without fail.

Japan's Middle East policy, which advocated neutrality as if this were an "absolute good," has now broken down completely, with the Arab side's branding it as an "unfriendly country" and its taking oil retaliation steps against it. Furthermore, when viewed from the Arab side, Japan's gradual shift from neutrality to a pro-Arab stand is also lagging several steps behind, in point of timing, today.

KH

YOMIURI (Full)

November 15, 1973

Keidanren's (Federation of Economic Organizations) Chairman UEMURA, Vice Chairman DOKO, and Energy Countermeasures Committee Chairman MATSUNE, and Overseas Oil Development Company President Hiroki IMAZATO called on Prime Minister TANAKA at the TANAKA Office in Akasaka, Tokyo, from 6:20 p.m. on the 14th, and conferred with him on the oil crisis problem. At this meeting, the Keidanren side expressed the view that the reducing of oil supply by the oil-producing countries will bring about a grave crisis to the Japanese economy, and strongly requested the taking of diplomatic policy, which will further deepen friendly relations with the Arab countries. They advised the dispatch of a "big-figure resources special envoy" at an early date.

In response to this, the Prime Minister reportedly indicated a forward-looking attitude, saying that "it is a matter which should naturally be considered." It is considered that after explaining Japan's policy toward the Arab countries at the talks with U.S. Secretary of State KISSINGER on the 15th, and after obtaining "understanding, the dispatch of a special envoy will come to be studied."

The business circles side is judging that economic co-operation, centering on industrial techniques and plants, with the Arab nations should be promoted, and that it is necessary to help in the "post-oil" economic construction.

KH

- 14 -

ASAHI (Full)

November 9, 1973

## Personnel Reshuffle and LDP (Part 1)

### CALCULATIONS BY PRIME MINISTER

To Solidify Foothold toward Very Important Testing Place;

To Give "Vigor" to Dilly-Dallying Party

The Cabinet-LDP personnel reshuffle plan, which had been given up two times since this summer, has finally started to move. So far, it is said that the framework of the present structure, including the four influential Cabinet members and the three top Party executives, will remain unchanged, and therefore, the prospects are that the scale of the proposed personnel reshuffle will be medium, from the standpoint of the number of posts to be involved in it. However, the "all-Party setup," established with the holding of the next Upper House election close at hand, may crack, depending on how the proposed reshuffle will be carried out. With what thought is Prime Minister TANAKA planning to set his hands to the planned personnel reshuffle? How will those influential persons respond to this? And, what is the general atmosphere within the Party?

### Touched Off by the Economy

It is none other than Prime Minister TANAKA who has kindled the "November personnel reshuffle" this time. In Nagano City, where he was stumping, the Prime Minister held a press conference (on Nov. 4). When he was asked about the personnel reshuffle problem, he gave a denial, saying that "I am not thinking of it now." After a breath, however, he added, "The situation will differ, if various voices rise ..." Needless to say, he had been fully aware of the ripples, which this statement would cause. It is certain that for that moment of "breath," the Prime Minister conducted "political calculations" very quickly.

To begin with, the political situation surrounding the Prime Minister is extremely severe, and it is necessary to bring about changes. Just one year ago, the Prime Minister, at the extraordinary Diet session, which was facing a dissolution of the Diet and the subsequent general election, was pushing around the Opposition Parties, against the background of the Japan-China normalization and the unprecedentedly big "TANAKA boom." At that time, the logic, which was emphasized by the Prime Minister and which noted that "if the Japanese Archipelago is remodeled, then the problem of commodity prices will be settled, too," was accepted, though not willingly. At present, however, the rising of commodity prices is providing a threat to the people's livelihood, and the people are also protesting strongly against the Government's "lack of commodity price countermeasures." The Opposition Parties are impatiently waiting for an opportunity to assail the Government, and even in the LDP, the sense of crisis has finally come to spread, with the raising of the consumer rice price as a turning point. Such advice as that "it is necessary to freeze land prices" (Administrative Management Agency Director General FUKUDA) and that "a state of emergency should be declared as to the commodity price problem" (Tokyo Metropolitan Federation Policy Board Chairman Tokusaburo KOSAKA), criticizes the economic policies, which the Prime Minister is pushing, with a bullish posture, though it is not based on the direct speech method. These remarks have also stimulated the feeling of the Prime Minister, particularly as he calls himself as an expert on economic policies.

Even in the field of diplomacy, unfavorable factors have arisen, one after another, such as the mistake in the Japan-Soviet Joint Communique, the stagnation of the Japan-China aviation agreement negotiations, and the political concessions in connection with the KIM Dae Jung Incident. In the pro-Taiwan group within the Party, many persons have visited Taiwan, and have openly criticized the normalization of Japan-China relations. At the Executive Board meeting, held on the 6th, Foreign Minister OHIRA was assailed for his "careless diplomacy," in connection with the mistake in the Japan-Soviet Joint Communique. Moreover, pressure from the Arab oil-producing countries is further increasing the uneasiness as to the people's livelihood.

## Turning Point in One-Shot Batting Method

The stereotyped means of coping with the situation in the bad environment is a "personnel renovation." Immediately after the Nagano statement by the Prime Minister, a certain leader of the TANAKA Faction offered the following advice: "It will not be all right if the proposed personnel reshuffle is not carried out as planned. If this situation continues as it is, then the Party will come to turn its eyes away from the operation of the Diet, and it will become impossible to cope with the next regular Diet session." The state of the operation of the Diet, which cannot be carried out satisfactorily, clearly shows that the TANAKA Administration's energy is declining and weakening. The Prime Minister expressed disapproval, saying that "it is impossible to carry out a personnel reshuffle, while thinking only of operating the Diet." In the end, however, the Prime Minister is said to have frankly shown a reaction, saying, "Thank you for your kindness shown to me on various points."

Those persons, who co-operated in establishing the TANAKA Administration, do not move as desired by the Prime Minister, any longer. This fact is a source of anxiety for the Prime Minister. Since the beginning of this year, the proposed "August personnel reshuffle" and "October personnel reshuffle" have been given up, one after the other. In conjunction with this, a feeling of disappointment has come to spread especially among the young Diet members. After returning home from his visit to Moscow, the Prime Minister loudly called for the "securing of Diet passage of the National Land Overall Development Bill at the next extraordinary Diet session." However, moves within the Party were inactive. Although it cannot be said that this was a sort of sabotage, there was a war-weary mood. They have decided to watch the situation as to how the Prime Minister and the TANAKA Faction will display their abilities. Secretary General HASHIMOTO belonging to the TANAKA Faction says, "This is not the time to try to hit a home run with a big swing. I have advised the Prime Minister to score points steadily, for example, by hitting singles."

Reflecting the Prime Minister's personality, the hitherto-conducted TANAKA politics was rather showy. The Japan-China normalization, the liberalization of capital, the proposed small electoral district system, the planned establishment of nation-wide New Trunk Railway networks, the Japan-Soviet negotiations, and the proposed two-trillion-yen tax reduction are all large-scale political tasks. The Prime Minister may not be cured of his habit of "formulating large-scale plans alone," but Secretary General HASHIMOTO and others, who are propping up the Prime Minister on the flank, think that "at this time when his Administration has entered its second year, efforts must be made to strengthen unity within the Party and to solidify the Party's foothold."

## Schedule toward Upper House Election

The Prime Minister is continuing to maintain the reins of government, despite his unpopularity and the bad conditions, because there is no definite "place." The Upper House election, slated for next summer, will literally affect the destiny of the TANAKA Administration. If the election results are bad, then the Prime Minister will probably be driven into the position of having to resign from his post, being covered all over with injuries. The Prime Minister, who has frequently experienced prosperity or adversity throughout his hitherto political life, is aware more fully than any other persons that the next Upper House election will become a very important testing place. He thinks that in order to achieve victory, he should be indifferent toward his personal appearance. As for his recent political judgment, the Prime Minister is nakedly giving priority to Upper House election countermeasures.

- 15 -

- 16 -

The political schedule for the proposed November personnel reshuffle has also been formulated in the process of making arrangements up until the holding of the next Upper House election. When the Prime Minister said that "the planned October personnel reshuffle will be given up, and instead, all-out efforts will be made to convoke an extraordinary Diet session this autumn," the Party suffered a shock, from the stand that "if so, there will not be sufficient time for him to set his hands to a personnel reshuffle." The reason for this is that if the situation develops as suggested by the Prime Miniter, the "tightly-packed schedule," including the convocation of an extraordinary Diet session, compilation of the budget, the Prime Minister's visit to Southeast Asia, convocation of the next regular Diet session, and the holding of the next Upper House election, will continue until next summer. However, the schedule has been changed to convoking the next regular Diet session early in December, with the planned convocation of an extraordinary Diet session given up. Therefore, there will be sufficient time in November. Even within the Party, a mood calling for "freshening up the people's minds during that period" has been re-kindled. The Prime Minister has probably read this mood. The expression "if various voices rise..." means that the Prime Minister intends to rise up to accept requests, if they arise from within the Party.

## Restrictions on Mosaic Work

In regard to the personnel reshuffle this time, the scale of reshuffle will be placed under strict restrictions. The Prime Minister must also take this fact into consideration. The present TANAKA structure is an "all-Party setup" for the purpose of including influential persons in the Cabinet. This structure is as fragile as mosaic work, but under the structure, it is rather difficult for the anti-main stream factions to carry out activities openly. Efforts must be made to prevent factional struggles within the Party from becoming further intensified, with the approach of the next Upper House election, which will become a decisive battlefield. At the Government-LDP liaison conference, held on Nov. 7, the Prime Minister particularly emphasized that "I have a clean slate as to a Cabinet reshuffle." He is also probably aiming to adopt his favorite "flash of lightning" formula. However, he probably feared that if he re-kindles the personnel reshuffle problem at this time, running counter to his basic policy of "not replacing the three top Party executives," it may even affect Policy Board Chairman KURAISHI (FUKUDA Factor), whose political responsibility is being pursued, in connection with the "golfing incident."

If the framework of the present structure is to remain unchanged, then it will be difficult to carry out a drastic personnel reshuffle. Among LDP leaders, there are also some persons who point out that "from the standpoint of the situation in the various factions and also from the viewpoint of political tasks concerned, there is only a small number of Ministers, including the Labor, Transportation, and Postal Services Ministers, who can be replaced smoothly." Will it be possible to satisfy the Party under such restrictions and to give a fresh image even to the people? The situation may rather result in inviting instability, though it is seeking stability. The conducting of calculations as to such advantages or disadvantages will be difficult even for the Prime Minister's computer.

(To be continued)

NMI

- 18 -

NIHON KOGYO (Full)

November 14, 1973

-- Interview with Federation of Electric Power Enterprises Chairman Otosaburo KATO (Chubu Electric Power Company President) --

Economizing of Electric Power Needed, Even by Curtailment of Operations;
Need to Secure Crude Oil, with Government Taking the Lead; No Other Way
but to Curb Demand

-- Due to the 25-percent production restrictions by OAPEC, the majors (international oil capital) are reducing the supply amount to our country, one after another. What are the effects of these moves on the electric power industry circles, which depend largely on oil as fuel?

KATO: Fuel for electric power depends 75 percent on oil. Consequently, the decrease in the amount of crude oil supply to our country poses a grave crisis for the electric power industry circles. Unlike other ordinary products, electric power flows automatically, when the users turn on the switch. Electric power, until it is created, lies in the hands of the industry circles, but once it is generated, it depends on the users, and we are not able to stop selling it because there is a shortage. However, as an actual problem, the amount of electric power to be generated will be reduced to that extent, when there is a fuel shortage. Therefore, the need to curb demand will inevitably arise.

However, there are no legal grounds at all for our curbing demand. Consequently, there is no other way for us but to request the users to economize on electricity. Therefore, at the emergency meeting of the Presidents, we decided to request the economizing of electricity by 10 percent, toward the general public, in electric power for business use, and toward big users. This 10-percent figure is merely a general target, and it does not mean that it will be all right if there is a 10-percent economizing of electricity. Depending on the state of crude oil, there may arise the need for further economizing, and we can formulate no prospects at all about that.

Oil Side Also Asked to Help in Public Nuisances Prevention

-- You talk about economizing on electricity. How can this be done concretely?

KATO: As for use for the people's daily livelihood, the situation differs with each company, and therefore, it is difficult to say categorically. However, it is necessary, first of all, to turn off neon signs, and switch off other unneeded lights. At any rate, the people must come to have the awareness that they must economize on electricity.

Next, in regard to electricity for industrial use, we hear that there are some types of industries which will have to decrease production by more than 20 percent, if the use of electricity is curbed by 10 percent. In such a case, it will be more proper to call it virtual restrictions on the use of electricity, rather than a request for economization. However, the industrial circles are also requested to co-operate in the economizing of electricity, even by carrying out curtailment of operations.

-- It is thought that the securing of good quality crude oil will become still more difficult in the future, as can be seen by the reduction in Ataka crude oil to be burned as it is. What will happen to the public nuisances problem, in that case?

KATO: We cannot stop abiding by the public nuisances prevention standards that we promised to local autonomous bodies, simply for the reason that we are unable to obtain good-quality fuel. Therefore, we, on our part, must make as much effort as possible. For that purpose, it is also necessary to hasten further the establishment of smoke de-sulphurization facilities. In addition to that, we hope that the oil side will give us help. To put it in terms more familiar to the people, the oil companies are like a sugar store while electric power companies are like confectionaries. It would be an impossible situation if the sugar store and a confectionary were to be quarrelling with each other. In the same way, oil companies and electric power companies must not be like water and oil, as in the past.

There are some people who have arguments about the direct burning of crude oil. However, we ask them to give thought to the question from the broader standpoint of the public nuisances question. The oil industry circles are supposed to know about these circumstances fully well.

## Even Possibility of Invoking "Article 27"

-- As a practical question, you have decided to request a 10-percent economizing of electric power. However, is there not a possibility of its developing further into restrictions on use, or restrictions on supply, which has legal backing?

KATO: If the crude oil situation were to worsen further, we will not be able to manage merely with a request for economizing on electricity. In such a case, there may arise the possibility of its becoming necessary to invoke the order for restricting use, provided for in Article 27 of the Electric Power Industry Law. However, we would like to avoid this, as much as possible. The question, then, is what we should do, in that case. It will become necessary for the Government to take the lead for the securing of crude oil. This must be carried out by the Government without fail. Also, what we can do at the present time is to carry out a spiritual movement among the people. It is necessary to carry out a large-scale spiritual movement to make every one of the people realize that electric power is valuable and that they must economize on electricity. Frankly speaking, we ourselves cannot formulate any prospects for the future. However, resources are not limitless, and therefore, the immediate task is for everyone to realize that economizing of resources is important.
(Interview by 2nd Industry Section Chief Atsushi KANEKO)

KH

MAINICHI (Full)

November 14, 1973

## Enterprises with Tie-ups with Taiwan Form Friendship Group

About 40 enterprises in the Kanto Area, which have made investments in Taiwan or which have business tie-ups with Taiwan enterprises, held a meeting, on the 13th, at the World Trade Center Building in Hamamatsu-cho, Tokyo, and formed a friendship group, named the "Taishi Kai" (Representative Sponsor: Moriya Trading Company President Ichiro MORIYA). According to Moriya Trading Company, preparations had been pushed for the formation of this "Taishi Kai," as voices calling for the need for exchanging information among related enterprises and for preventing the arising of unexpected losses, have been mounting, due to the following circumstances: (1) Investments in Taiwan by Japanese enterprises, which decreased sharply last year, have been increasing sharply this year, centering on medium and small enterprises, and the total amount of investments reached about 20 million dollars, consisting of 52 cases of investments, during the January-July period, but (2) despite this fact, diplomatic relations with Taiwan have been severed and there is arising a tendency toward insufficiency of information concerning Taiwan.

KH

- 19 -

- 20 -

ASAH (Full).

November 14, 1973

Enterprises, which are investing in Taiwan, gathered together on
the 13th in Tokyo, and established a mutual friendship association
called "Taishi Kai" (Representative Sponsor: Moriya Trading Company
President Ichiro MORYA). The investments in Taiwan by our country's
enterprises are continuing to increase, even after the severance of
diplomatic relations between Japan and Taiwan, and under the present
situation, it is likely that the amount of investments in Taiwan this
year will mark the highest amount in history. At this time when it is
said that the Chinese side has become nervous about a sharp increase in
investments in Taiwan, future activities to be carried out by the same
organization will be watched with attention.

"Taishi Kai" (TN: Taiwan Capital Association) was established under the
sponsorship of 11 manufacturers and trading firms, which are investing
in Taiwan and also which have established business tie-ups with enter-
prises in Taiwan. About 40 companies, centering on medium-ranking
manufacturers, attended its inaugural general meeting. It is planned
that consultative meetings will be held, when there are occasions, in
the future, for the purpose of exchanging information and views among
member companies, and that requests will be submitted to Taiwan Govern-
ment officials for the adjustment of the investment environment. A
person responsible for the same organization says that the "major aim
of the organization is to protect investments and assets in Taiwan, and
that there is absolutely no political intention." This is the first
time that this kind of organization was established by enterprisers, which
are investing in Taiwan.

According to a source concerned, last year when Japan-China diplomatic
relations were restored, the amount of investments in Taiwan by Japanese
enterprises dropped to $7,720,000 (approval basis). This figure is equal
to about one-half of the amount of investments made in the previous year.
Since the beginning of this year, however, investments in Taiwan have been
increasing month by month, and the amount of the investments in the
January-September period reached $26,110,000, or 59 in terms of instances.
The highest amount of investments in the past was $28,530,000 in 1970,
and therefore, persons concerned are viewing that the total amount of
investments this year will exceed that highest amount by the end of this
year, and that it will establish the highest record in history.

The investments in Taiwan are being made centering on medium-ranking
and small enterprises, with the shortage of labor within the country and
the difficulty in finding sites (for building factories) becoming the
background for their advance into Taiwan. It is said that recently there
have appeared enterprises, which change their plans for investing in the
ROK, where restrictions on investments have been strengthened, and which
have started to advance into Taiwan. "Taishi Kai" was established, with
a quick increase in the number of these enterprises and a sharp increase
in the amount of investments in Taiwan as the background. At present,
about 40 Japanese enterprises are investing in Taiwan. It is predicted
that many more enterprises will join the same organization in the future.

After the restoration of diplomatic relations between Japan and
China, the Japan-Republic of China Businessmen's Conference (Japanese
side's Representative: Keidanren - Federation of Economic Organizations -
Vice Chairman Teizo HORIKOSHI) was established by interested members of
the Japan-ROC Co-operation Committee Economic Department. Organized ex-
change between economic circles in Japan and Taiwan is about to be invigor-
ated again, with the holding of the first conference in Taipei being
scheduled for toward the end of this month.

On the other hand, in connection with industrial circles, which have again started to turn their attention to Taiwan, China, in a recent issue of the People's Daily, discussed control of Taiwan by foreign capital, and tacitly denounced the increase in the numbers of Japanese and American capital, which has advanced into Taiwan. As to moves among our country's enterprises, recently there occurred the incident of Toyota, which put an advertisement in a Taiwan newspaper. The Chinese side temporarily suspended business talks with Toyota on exports from that Company to China, because of this incident. There is the possibility that the establishment of Taishi Kai by Japanese enterprises which are making investments in Taiwan will delicately "irritate" China.

KS

NIHON KEIZAI (Full)

Eve., November 12, 1973

Prime Minister TANAKA attended the inaugural general meeting of the Social Economy National Council held at the Imperial Hotel in Tokyo on the morning of the 12th, and referring to the energy problem, which has become serious on a world-wide scale, in his address, expressed his determination, saying that "in order to maintain the people's livelihood, the Government will concentrate all its power on enforcing energy counter-measures." At the same time, he appealed to the people on the economization of energy for the first time, saying, "An attempt should be made to change the judgment of values, by shifting our living from the wasteful spending of resources to an economized type."

Under the slogan "Construct Welfare Society Full of Vitality!," 39 sponsors representing labor, management, neutrals and consumers organized the Council.

The gist of Prime Minister TANAKA's statement is as follows:

1. The welfare society we aim at is not a short-lived society based on a sense of relief, but an everlasting society supported with devotion and diligence, which represent the original posture of a human being. It is a society where human beings are respected, and they can fully develop their own latent abilities through their free choice.

2. The reduction of crude oil imports caused by the present Middle East War as an occasion, or the world-wide shortage of resources, seems to have brought into relief that a wasteful society, where resources, once used, are thrown away, does not guarantee true abundance. The practice of throwing away resources, once used, which has been fixed in the people's living as "consumption is a virtue" should be re-examined. An attempt should be made to change the judgment of values by shifting the wasteful spending of resources to an economized type of living.

3. The problems involving cities, pollution, prices, housing, improvement of social capital and expansion of social security, cannot be solved by the efforts of the Government alone. They can be settled only when the various strata of the people repeatedly tackle them from their long-term, multilateral viewpoints, understand and become convinced of them, and fulfil their responsibilities, respectively, through close co-operation.

KO

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NIHON KEIZAI (Full)

November 10, 1973

# To Lay Stress on Anti-LDP Struggles: Agreement with JCP to Be Difficult: Komei Party Chairman TAKEIRI on Co-Operation in Upper House Election

Komei Party Chairman TAKEIRI held a press conference on the afternoon of the 9th, at the Park Hotel in Sapporo, where he is stumping, and touching upon the problem of co-operation among the Opposition Parties in the Upper House election next year, TAKEIRI clarified his resolve, saying that the "coming election contains the possibility of reversing the distribution of power between the conservative and the renovationist camps, and therefore, we will tackle the election with a forward-looking attitude." Concerning the conditions for realizing co-operation in the election, Chairman TAKEIRI further clarified his basic views as follows: (1) Primarily, we will lay stress on anti-LDP joint struggles; and (2) In connection with the plan to take over the political reins, it is necessary to reach agreement on the general principle for abiding by the three principles advocated in the present Constitution, that is, permanent pacifism, guarantees for basic human rights, and parliamentary democracy, in the future, too. This is the clarification of his position of promoting co-operation with the JSP in the Upper House election, and, on the other hand, virtually rejecting joint struggles with the JCP in the same election, in view of the confrontation of views between the JCP and the Komei Party on the problem of the Constitution. The same Chairman stressed that "it is difficult to conclude an agreement with the JCP on the election."

Due to the statements made by Chairman TAKEIRI on the 9th, it has come about that the JSP and the Komei Party will take the lead in co-operation among the Opposition Parties in the coming Upper House election. It is slated that JSP Secretary General ISHIBASHI and Komei Party Secretary General YANO will start concrete negotiations in the near future. Concerning conditions for realizing co-operation in the Upper House election, the JSP has already formulated the policy of (1) realizing co-operation under the give-and-take formula, (2) co-operation in the election not being inseparable from the plan for taking over the political reins, although such co-operation is not unconnected with the plan for taking over the political reins, and (3) concluding a policy agreement. It is predicted at talks to be held between ISHIBASHI and YANO, co-ordination of candidates will be carried out. It is observed that a conclusion will be reached on concrete electoral districts, even within this year, if early.

The salient points of Komei Party Chairman TAKEIRI's statements at his press conference are as follows:

1. The Upper House election slated for next year will be the election, which will contain the possibility of reversing the numbers of the seats being secured by the conservative camp and the renovationist camp, and in this sense, the coming election will become a grave political decisive battle, which can be called a break-through point toward establishment of a renovationist coalition government. Our Party has made a resolve to tackle co-operation in the Upper House election among the Opposition Parties with a forward-looking posture, and by groping for all possibilities.

2. Even if co-operation in the election is realized, we are not permitted to take the optimistic view that the reversing of the conservative camp and the renovationist camp will be realized easily in the coming Upper House election. When we base ourselves on such a severe position, in co-operation in the Upper House election, we should primarily lay stress on anti-LDP joint struggles with the aim of obtaining LDP seats and realizing the reversing of the numbers of seats secured by the two camps, while looking at the possibility of realizing the establishment of a renovationist coalition government in the future.

3. At the recent Komei Party Convention, it was decided that co-operation in the Upper House election will be realized, with the plan to take over the political reins as the basis. However, this does not mean that complete agreement on the plan for taking over the political reins should be established, but it means that agreement on major points is necessary. Above all, the protection of the peace Constitution is important. It is also necessary to abide by the three immutable principles, that is, permanent pacifism, guarantees for basic human rights, and parliamentarian democracy, in the future, too. As regards co-operation in the Upper House election, we will promote co-operation in the same election with a forward-looking attitude, if the minimum degree of agreement is reached on the point that in co-operating in the election, the position of anti-LDP joint struggles and the three principles concerning the Constitution are observed.

4. We cannot conclude an election agreement with a political party, which will not satisfy these three principles concerning the Constitution. Therefore, it is difficult for us to conclude an election agreement with the JCP. However, from our position of laying stress on joint struggles against the LDP, we will retain the possibility of carrying out "bridge" joint struggles, and we will deal with the matter with a forward-looking attitude. For the purpose of realizing co-operation in the coming election, we are ready to adjust several candidates even in districts where official candidates have already been announced.

5. Concerning the JCP, we are harboring doubts as to the Constitution. While we are harboring doubts as to this, we cannot hold talks with the JCP on co-operation in the Upper House election. Accordingly, even if the JSP and the JCP decide to carry out joint struggles, it will be difficult for the Komei Party to support JCP candidates.

## Possibility of Realizing Joint Struggles in Upper House Election, with JSP and Komei Party Taking Lead

(Commentary) It seems that Chairman TAKEIRI's statement made on the 9th hints that the JSP and the Komei Party have considerably boiled down the talks between them on how to realize co-operation in the Upper House election.

As the background for the JSP-Komei Party talks on co-operation in the election having progressed considerably, there are the circumstances where the JSP has been driven into a difficult situation, due to the Komei Party's having taken a "positive tactic" by having nominated close to 40 candidates, at one stroke, who will run in the coming Upper House election. For this reason, it seems that the JSP, on its part, made great efforts, even to the point of being abnormal, for the realization of election co-operation, with the adopting of the "give-and-take formula" as the premise, and that the Party carried out persuasion operations toward the Komei Party. From the JSP's position, the basis which is supporting the Komei Party is different from that of the JCP and therefore, there is no fear of a vying between the JSP and the Komei Party for the leadership among the renovationist forces. Moreover, the JSP is attaching great expectations on the Komei Party's ability for collecting votes.

JSP Secretary General ISHIBASHI, at his press conference on the 6th, already hinted at the progress of the negotiations, saying, "The point that co-operation in elections is not inseparable from the plan for taking over the political reins, has permeated within the Komei Party, and the basis for holding talks has been established." On the occasion of Chairman TAKEIRI's clarification of his view on the 9th, there has appeared the strong possibility that co-operation in the election between the JSP and the Komei Party will take the lead.

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The Komei Party also is recently leaning toward the JSP and Sohyo (General Council of Japan Trade Unions) more strongly than before, as seen in its having attended the Sohyo Convention and Gensuikin (Japan People's Council against Atomic and Hydrogen Bombs) meetings. There is the strong atmosphere within the Komei Party, which calls for the realization of a "JSP-Komei Party axis" line. It can be said that the promotion of JSP-Komei Party co-operation in the coming Upper House election is an expression of such an atmosphere. It seems that there is an aspect where the Komei Party gave consideration to the criticism within the Opposition Party side that "the Komei Party's Party-forces expansionism only brings pluses to the LDP, not to the Opposition Parties," and it has agreed to true and justifiable anti-LDP joint struggles, which the JSP is calling for, for the purpose of reversing the conservative side's position and the Opposition Party side's position.

The JSP is taking the attitude of welcoming the Komei Party's policy. On the other hand, however, the JSP's policy of promoting the negotiations with the JCP remains unchanged. Partly for the reason that the Komei Party did not reject the "bridge joint struggles," which the JSP intends to realize, the JSP and the Komei Party, and the JSP and the JCP, will become connected, if agreement is reached between the JSP and the JCP, and three-Party joint struggles among the JSP, JCP, and Komei Party will be virtually realized. Concerning conditions for realizing co-operation in the Upper House election, the JCP also is taking the flexible posture for asking for agreement on the three renovationist principles, which the same Party is calling for.

KS

YAMATO SHIMBUN (Full)

November 14, 1973

The Lower House Steering Committee held a Directors meeting on the morning of the 13th and discussed the agenda at the 70th ordinary Diet session, which is scheduled to be convoked on the 1st of next month. As a result, it was decided that on the day of convocation of the Diet session, Finance Minister AICHI will give a financial speech on the supplementary budget, in addition to the designation of Diet seats and the establishment of Special Committees.

At the Directors meeting on the same day, the Opposition Party side demanded that Prime Minister TANAKA also give a speech on his convictions, without limiting things to Finance Minister AICHI's financial speech. However, the LDP opposed this demand, saying, "It is scheduled that at the beginning of the post-recess session of the Diet, to be convoked next January after the completion of the compilation of the next fiscal year's budget, the Prime Minister will give an administrative policy speech. As there is no precedent that the Prime Minister has given a speech twice at a session of the Diet, we cannot respond on the Prime Minister's giving a speech on the day of convocation of the Diet." So, a conclusion has been carried over.

SO

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NIHON KEIZAI* (Full)

November 15, 1973

Foreign Minister OHIRA, who appeared at a press conference with Japanese reporters and foreign correspondents after ending his talks with U.S. Secretary of State KISSINGER on the 14th, was more cautious than even his usual cautious self, perhaps because the central topics at the talks were important international problems such as a Middle East peace and the oil problem, and remained evasive throughout, saying "I hope you will excuse me with just this," whenever the questions touched upon important points. A foreign correspondent in Tokyo, who finally lost patience, asked: "How do you intend to cope with the oil question?" Even when asked this question, the Foreign Minister continued to persist in evasion, thoroughly goingly, saying "Since I am not God ...." When the same correspondent asked, "Does that mean that you are praying to God?", the Foreign Minister replied, "I am praying to our various gods," and left the press conference room, leaving behind him a swirl of laughter.

* Kisha Techo

KH

NIHON KEIZAI (Full)

November 15, 1973

Four top leaders of the business circles -- Keidanren (Federation of Economic Organizations) Chairman Kogoro UEMURA, Keidanren Vice Chairman Toshio DOKO, Keidanren Energy Countermeasures Committee Chairman Soichi MATSUNE and Overseas Oil Development Company President Hiroki IMAZATO -- called on Prime Minister TANAKA at the TANAKA Office in Hirakawa-cho, Tokyo, toward the evening of the 14th, and conferred with him on measures to overcome the immediate oil crisis. At this meeting, Chairman UEMURA and others conveyed to the Prime Minister their views that, in order to overcome the present oil crisis, "there is no other way but to adopt a clear-cut diplomatic posture inclining to the Arab side." And, as the first step for concretely materializing this, they made a representation, in a rare move, for the dispatch of a big-name resources ambassador to the Arab nations, at an early date, and explain through him our country's position.

At this conference, Chairman UEMURA and others conveyed to the Prime Minister the view that they are thinking of sending top leaders of the business circles to accompany a big-name resources ambassador, in the case of the Government's dispatching him, if necessary, and also that they are prepared to send a mission from the business circles, separately, depending on need. "In response to this, Prime Minister TANAKA also clarified his view, saying that "I would like to study the proposals positively."

The call on the Prime Minister by the four top leaders of the business circles arose from the fact that, at the emergency "consultations on energy countermeasures" held by Keidanren on the morning of the same day, the feeling was strong that "on this occasion, the Government should shift its diplomatic posture clearly to a pro-Arab stand," from a strong feeling of crisis that if the present state of oil crisis were to become protracted, the economy of our country will collapse from its very foundation. This led to this sudden "direct appeal" to the Prime Minister.

The leaders of the business circles also expressed the intention that the business circles and industrial circles will also give all-out co-operation to the Government's oil consumption restriction measures, to be enforced soon. They also showed the posture of making utmost efforts to prevent the triggering of commodity price rises, by strictly refraining from raising prices, taking advantage of consumption restrictions.

KH

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Oil Rather Than Personnel Reshuffle Demanded

Administrative Management Agency Director General FUKUDA advocated an "all-nation Cabinet by men of talent." Former Prime Minister KISHI gave a speech at the LDP Advisers meeting on the 13th, saying, "Now is the time when the political posture is called to account. The Government and the LDP should unitedly tackle such serious problems as prices and oil." Prime Minister TANAKA, too, is fully aware of this situation change. "Far from a personnel reshuffle. Oil is [the matter]." Probably for this reason, the Prime Minister makes no mention of a reshuffle recently. After his talks with Secretary KISSINGER, and with the knowledge of all the elements, including the trends of the economy, prices, the intra-Party situation, etc., when and on what scale will he renovate the lineup...?

MT

YOMIURI (Full)

November 15, 1973

A US high official source explained the Sino-US Joint Communique, in Tokyo on the 14th. The source compared this Communique with the Shanghai Communique, which was issued upon US President NIXON's visit to China, and said that progress was to be seen on the following two points: (1) The United States and China held fundamental talks on the world as a whole. (2) They discussed problems of interest to both sides, such as personnel exchange, liaison offices, and trade.

In reply to questions, the source said that, at the Sino-US summit talks, nothing was discussed on the reported withdrawal of the US Forces from the ROK. With regard to the expression in the Joint Communique reading "respect for sovereignty and territorial integrity of all states," a question asked whether China recognized including Israel or the existence of Israel. The source said, "So far as I know, the Chinese side did not raise any objection." He emphasized that fundamental talks were held on the world as a whole, and refrained from referring to individual areas or problems.

With regard to normalization of diplomatic relations, the same source said that there was no agreement on a "scenario" as to when and how normalization will be realized. At the same time, he pointed out that the liaison offices in the capital cities of the two countries are playing the roles of embassies, substantially. Thus, he hinted that there is a possibility of [the situation] moving toward normalization of diplomatic relations through piling-up of operational exchange.

The source also clarified that agreement was reached on exchange of newsmen between the United States and China. He said that US information media will probably stay in Peking but that the Chinese side dislikes dispatching Chinese newsmen [to the United States] as long as the newsmen of Taiwan stay in the United States.

MT

SANKEI (Full)

November 15, 1973

# Groups of Tuna-Fishing Ships "Wandering"; Fishing Areas to Be Shifted to North Atlantic; 10-Odd Ships from Yaizu and Other Areas; Due to Suspension of Refueling by South Africa

(Shimada) In connection with the closing of oil bases in various African countries, the Shizuoka Prefectural Bonito-Tuna Fishermen's Co-operative Association on Nov. 14 instructed 125 shipowners of tuna-fishing ships to transfer their fishing zones from the area off South Africa, for example, to the areas off Australia and New Zealand, and the North Atlantic.

The first group of fishing ships, which have immediately changed their fishing areas on the basis of the instructions, is composed of ten-odd tuna-fishing ships, including the "No. 23 Showa Maru" (374 tons /Skipper: Mitsumasa TAKEMITSU; number of crew members: 21/) belonging to the Showa Fisheries Company in Nakaminato Town, Yaizu City, Shizuoka Prefecture and other ships belonging to the Yaizu, Omaezaki, and Matsuzaki Fishermen's Co-operative Associations. These ships will change the area off South Africa as their destination for fishing operations, and will leave for the sea area off the Canary Islands in the North Atlantic, in the near future.

According to surveys, hitherto conducted by the said Association, 59 tuna-fishing ships are now carrying out fishing operations off South Africa. These ships have all called at supply bases along the coast of Africa at the rate of once for every two months to take on fuel, foodstuffs, etc. Among the 11 supply bases, however, Cape Town, Mombasa, Port Elizabeth, and Lobito have stopped refueling, one after another. It is only Durban, which is maintaining its normal functions as a supply base. It is said that this base will also probably stop refueling within one month or less, if it comes to be used concentratedly by various groups of ships.

Therefore, the Shizuoka Prefectural Bonito-Tuna Fishermen's Co-operative Association, through its superior organization, that is, the Japan Federation of Bonito-Tuna Fishermen's Co-operative Associations (Nikkatsuren), will appeal to the Fisheries Agency and other organs concerned for the early establishment of countermeasures.

NMI

ASAHI (Full)

November 13, 1973

## "We Request Renovation of People's Intentions"; FUNADA Faction Reaches Agreement

The FUNADA Faction of the LDP held a meeting within Tokyo on the night of the 12th, and exchanged views on the present political situation. As a result, agreement was reached that if high commodity prices, the buying up of daily necessities, and the energy crisis centering on oil are to continue, this may cause serious social unrest, and that, therefore, the people's intentions should be renovated, through a Cabinet reshuffle and a change in Party officers for the settlement of these problems.

The same meeting was held, responding to the holding of a meeting among the four middle-of-the-road factions (SHIINA, MIZUTA, FUNADA, and ISHII Factions) on the night of the 7th, with the aim of unifying views within the FUNADA Faction toward an expected "November personnel reshuffle." At the meeting of the LDP Advisors slated to be held on the 13th, FUNADA will make statements in line with this direction.

KS

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YOMURI (Full)

November 12, 1973

Full-Fledged Home-Produced Missiles to Make Their First Debut: Effective for Beachhead Operations: Cost of Development Is ¥1 Billion -- JDA

In order to destroy accurately any landing ships advancing toward the coast, by the use of semi-automatic wire-guided missiles containing electronic computers, the JDA has hitherto been pushing the research and development of "beachhead missiles" at the enormous cost of 1,000,000,000 yen, taking eight years. It has also recently succeeded in the final test-firing of the missile. Operational tests will be carried out until the end of next year, and in parallel with this, the missile will be placed under a mass-production setup. Such missiles will be assigned to GSDF units after fiscal 1975. This will mean the first advent of full-fledged, home-produced missiles in response to the GSDF's basic defense strategy of "repelling any invasion by an enemy at the beachhead." It is also attracting attention as realizing the Government's policy of "pushing the strengthening of our defense power, without regard to the unconstitutionality verdict."

Concrete figures as to the performance of the "beachhead missile" are regarded as a "JDA secret." However, according to an estimate, formed by a person concerned, the body of this missile is 1.2 meters or more in length, 20 centimeters or more in diameter, and 20 to 30 kilograms in weight. The missile also has a range of 3,000 to 4,000 meters, and is capable of being launched at a speed of 150 meters or more per second. The body of the missile is also equipped with a twisted wire, made of three very small-size piano strings, which are less than 0.15 millimeters in diameter. A guided electric current will be sent in this wire toward the target. The missile will be guided by a small-size electronic computer, set up in its launcher. The task of launching personnel is only to fix the target, to push the launching button, and to ascertain whether the missile has hit the target.

As for wire-guidance formula-basis missiles, it was in the last fiscal year, that the GSDF started to adopt formally model-64 "ATM" anti-tank guided missiles. These missiles have already been assigned to the anti-tank units of about 10 of the total 13 GSDF divisions. However, the range of the "ATM" missile is 1,500 meters, or less than one-half of that of the newly-developed missile. The "ATM" missile is also far smaller both in weight and in size, and moreover, it is markedly inferior in destructive power, too. As for their performance, missiles of this type only will be launched toward individual tanks advancing from LST's, which have approached the coast. Furthermore, launching personnel will guide the missiles after adjusting the angles of the bodies and the range with their own hands, watching the target. Therefore, it will also take much time to train those personnel sufficiently. On this point, the performance of the new type missile is more than twice as high as that of the "ATM" missile, and it is also much easier to handle. The GSDF Office of Staff says, "The new type missiles are capable of attacking 500-to-1,000-ton-class LST's on the sea at one stroke, instead of attaching individual tanks on the ground."

The "development of effective beachhead weapons" is an "earnest desire," which the SDF have entertained since they were established. Moreover, the effects of short-range missiles have been just proved through the Vietnam War and the Middle East War. The newly-developed missiles come under the category of short-range SSM's (surface-to-surface missiles), and the Technical Research Institute guarantees that they are very excellent both in the accuracy of hitting the target and in destructive power, even when compared with various other countries' missiles of the same type, such as the "TOH" missiles (US) and the "HOT" and "MILLAN" missiles (for joint use by France and Germany). As in the case of "ATM" missiles, the Kawasaki Heavy Industries Company is scheduled to mass-produce the newly-developed missiles. Operational tests will be carried out by the GSDF Fuji School Equipment Experiment Unit.

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YOMIURI (Full)

Eve., November 14, 1973

Meaningful As "Firming up of Ground" between US and China: KISSINGER Visit to China; Rather Than Concrete "Results" (Commentary)

US Secretary of State KISSINGER wound up his five-day visit to China, and on the morning of the 14th, he left Peking for Japan, by air, through Shanghai. Some circles had been expecting that there would be quick progress toward normalization of diplomatic relations between the US and China, as the KISSINGER visit this time was the 6th visit to China, and also the first visit there after his assumption of the post of Secretary of State. However, it is not likely that such concrete, remarkable "results" will be achieved from his visit to China this time. The Joint Communique has not been announced yet, but Secretary of State KISSINGER, at the farewell party on the night of the 13th, hinted, in his message, that any such results will be incorporated in the Joint Communique. Nevertheless, however, or rather than to say nevertheless, Secretary of State KISSINGER's message strongly hinted that there was no important meaning, going beyond that, in his visit to China this time.

The Secretary of State confirmed that "no matter what situation will arise in the US in the future, friendship with the People's Republic of China is a factor for continuing US foreign policy." Further saying, "The meaning of my visit to China this time and that of relations between ourselves (US and China) cannot be incorporated, by any means, in phraseologies of one document," the Secretary of State hinted in advance that there will be few concrete "results" in the Joint Communique. At the same time, he stressed America's unchangeable posture toward the normalization of Sino-US relations, repeatedly saying, "We will give you (China) a guarantee. Regardless of what situation will arise in the future, and also, regardless of what Government will be established in the future, progress, which has been achieved while promoting relations between ourselves, will be continued in the future, too." Moreover, an NCNA article, which reported the KISSINGER message, deleted the expression "also, regardless of what Government will be established." It is probably clear that this contains grave meaning.

It had been rumored, since around August this year, that Secretary KISSINGER would visit China. However, his scheduled visit to China had been postponed for several reasons, including the 4th Middle East War. For this reason, there prevailed the easy-going observation that "his visit to China was merely postponed for three months." On the other hand, however, there was the doubt, first of all, as to why the Secretary of State, who ought to have been kept busy with the mediation for the realization of peace in the Middle East, must hasten to visit China. Moreover, President NIXON has been driven into a difficult situation due to the Watergate Case, while on the Chinese side also, there are indications that the voice of criticism has been raised, in connection with the conciliation with the US realized by Premier CHOU En-lai. Thus, there are severe domestic circumstances on both sides. There was an observation that in order to dodge such a situation, there may be the possibility that greater "diplomatic results" than expected may be stressed, such as, for example, results as to the normalization of diplomatic relations between the US and China, as a result of Secretary of State KISSINGER's visit to China this time.

Secretary of State KISSINGER's message on the night of the 13th hinted at the fact that conditions for achieving such "dramatic results" had not yet been prepared. At the same time, what is the reason for his having stressed repeatedly, even two times, that America's efforts to normalize Sino-US diplomatic relations will remain unchanged, "regardless of what situation will arise and what Government will be established in the future"? Also, what is the reason for the Chinese side's having made the report, while deleting the expression "regardless of what Government will be established"? This eloquently tells the fact that Premier CHOU is harboring strong anxiety as to the future of the normalization of Sino-US relations because of the NIXON Administration's having been driven into a corner due to the Watergate Case, that is, conversely speaking, Premier CHOU himself being placed in a severe position within his country.

It is thought that probably this is the reason for Secretary KISSINGER's having visited China by sparing time for his visit, while he was kept busy with the mediation for the Middle East.

Even though it is said that now is the tri-polar age among the US, China, and the Soviet Union, China has been greatly irritated by thorough-going co-operation between the US and the Soviet Union ranging from the US-Soviet summit talks in June, which were held on the occasion of General Secretary BREZHNEV's visit there and which realized the conclusion of the "US-Soviet Nuclear War Prevention Agreement," to the US-Soviet Joint Resolution, which led to the standstill cease-fire as to the 4th Middle East War. All the more for this reason, we can safely observe that Premier CHOU has been placed in a severe situation.

It seems that the KISSINGER visit to China has not been able to achieve concrete results, which can calm down China's irritation. However, it seems that his visit there has achieved the result of "appeasing" Peking's irritation, judging from Chairman MAO's having granted Secretary KISSINGER a meeting in person, and Peking's having extended a "hearty welcome" to him. However, it seems that Peking's hearty welcome is also an expression of the difficult position of Premier CHOU, who must stake himself on the task of improving and normalizing relations with the US, while standing on severe relations with the Soviet Union.

KS

YOMIURI (Full)

November 15, 1973

## All Results of Talks Not Incorporated; In "Sino-US Communique" -- Foreign Ministry Source's View

With regard to the Sino-US Joint Communique, a Foreign Ministry source said on the night of the 14th: "It is a general, basic statement on Sino-US relations and has nothing new to offer, in particular. However, judging from the fact that the talks between US Secretary of State KISSINGER and Chinese leaders, including Chinese Communist Party Chairman MAO Tse-tung, lasted many hours, all the contents of the talks are not incorporated in the Joint Communique. It is believed that important problems lie where there are such exclusions from the Joint Communique." He clarified his views as follows:

1. There is nothing new even in its mention of the Taiwan problem, and there are no signs of a sudden change in Sino-US relations. However, the degree of the United States' and China's trusting each other on the Taiwan problem has increased.

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