EPF B

MOMENTUM TOWARD NORMALIZATION OF U. S. - CHINA RELATIONS SEEN
(GRIDIRON) (750)

TOKYO, NOV. 15 -- U. S. OFFICIALS ACCOMPANYING SECRETARY OF STATE KISSINGER ON HIS SIXTH TRIP TO PEKING REPORT THAT THE MOMENTUM TOWARD NORMALIZATION OF THE SINO-AMERICAN RELATIONSHIP WAS INCREASED DURING HIS THREE-AND-ONE-HALF DAYS OF TALKS WITH CHINESE COMMUNIST PARTY CHAIRMAN MAO TSE-TUNG AND PREMIER CHOU EN-LAI.

THE AMERICAN OFFICIALS POINT OUT, HOWEVER, THAT A DELICATE PERIOD OF NEGOTIATIONS LIES AHEAD EVEN THOUGH THE U. S. - CHINESE JOINT COMMUNIQUE OF NOVEMBER 14 MANIFESTS A SUBSTANTIAL IDENTITY OF VIEWS OVER THE DIRECTION AS WELL AS THE PACE OF NORMALIZATION.

THE NOVEMBER 14 COMMUNIQUE IS AN ADVANCEMENT OVER THE JOINT COMMUNIQUE ISSUED AT SHANGHAI IN FEBRUARY, 1972, AT THE END OF PRESIDENT NIXON'S VISIT, FOR FOUR REASONS, ACCORDING TO U. S. OFFICIALS.

(1) IT BROADENS THE GENERAL PRINCIPLES OF THE SHANGHAI COMMUNIQUE BEYOND THE ASIAN-PACIFIC AREA TO THE WORLD IN GENERAL.

THE SHANGHAI DOCUMENT STATED THAT NEITHER CHINA NOR THE UNITED STATES "SHOULD SEEK HEGEMONY IN THE ASIA-PACIFIC REGION AND EACH IS OPPOSED TO THE EFFORTS BY ANY OTHER COUNTRY OR GROUP OF COUNTRIES TO ESTABLISH SUCH HEGEMONY."

THE LATEST COMMUNIQUE EXTENDS THIS PRINCIPLE TO "ANY OTHER PART OF THE WORLD."

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(2) THE NEW COMMUNIQUE HAS A MUCH STRONGER STATEMENT ABOUT THE NEED OF CONTINUOUS U. S. - CHINESE CONSULTATIONS AT AUTHORITATIVE LEVELS.

IT STATES THAT THE TWO SIDES "AGREED THAT IN PRESENT CIRCUMSTANCES IT IS OF PARTICULAR IMPORTANCE TO MAINTAIN FREQUENT CONTACT AT AUTHORITATIVE LEVELS AND TO...ENGAGE IN CONCRETE CONSULTATIONS ON ISSUES OF MUTUAL CONCERN."

(3) THERE IS A MAJOR EVOLUTION REPRESENTED IN THE LATEST DOCUMENT BECAUSE IT CONTAINS A NUANCE IN THE CHINESE STATEMENT ABOUT WHAT NORMALIZATION DEPENDS UPON. THIS WILL BE THE BASIS FOR FURTHER DISCUSSIONS.

(4) ALSO IT CALLS FOR A QUALITATIVE UPDATING OF THE LIAISON OFFICES IN EACH OTHER'S CAPITALS, AGREES UPON A NUMBER OF NEW PEOPLE-TO-PEOPLE EXCHANGES IN THE COMING YEAR, AND STATES A MUTUAL INTEREST IN INCREASED TRADE. NONE OF THESE FACTORS EXISTED AT THE TIME OF THE SHANGHAI COMMUNIQUE.

U.S. OFFICIALS REFUSED TO SPECULATE ON WHAT CAN, IN FACT, BE PRACTICALLY ACHIEVED TOWARD FORMAL WASHINGTON-PEKING DIPLOMATIC RECOGNITION.

BUT THEY REPEATEDLY EMPHASIZED THAT A NUANCE EXISTS IN THE WORDS OF THE LATEST COMMUNIQUE THAT FORMS THE BASIS FOR EXPLORING THE FURTHER ADVANCEMENT OF EVOLUTION TOWARDS DIPLOMATIC RECOGNITION.

IT IS CLEAR, THESE OFFICIALS SAID, THAT PREMIER CHOU EN-LAI IS A MAN WHOSE SENSE OF NUANCE IS HIGHLY DEVELOPED. AND, THEY NOTED, THE FOLLOWING WYVRBPG IN THE COMMUNIQUE WAS CAREFULLY CHOSEN:

"THE U.S. SIDE REAFFIRMED: THE UNITED STATES ACKNOWLEDGES THAT ALL CHINESE ON EITHER SIDE OF THE TAIWAN STRAIT MAINTAIN THERE IS BUT ONE CHINA AND THAT TAIWAN IS A PART OF CHINA; THE UNITED STATES GOVERNMENT DOES NOT CHALLENGE THAT POSITION.

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"THE CHINESE SIDE REITERATED THAT THE NORMALIZATION OF RELATIONS BETWEEN CHINA AND THE UNITED STATES CAN BE REALIZED ONLY ON THE BASIS OF CONFIRMING THE PRINCIPLE OF ONE CHINA."

THE POINT WAS MADE BY U.S. OFFICIALS THAT THE COMMUNIQUE PRODUCED IN PEKING WAS INTENTIONALLY SUBTLE ON MANY MATTERS, INCLUDING RECOGNITION, BECAUSE IT HAS BEEN FOUND MORE PRODUCTIVE IN NEGOTIATING WITH THE CHINESE TO ESTABLISH A PRINCIPLE FIRST AND THEN TO WORK OUT DETAILS.

THE FORMAL ESTABLISHMENT OF DIPLOMATIC RELATIONS, IT WAS SAID, DOES NOT LOOM AS DECISIVELY IN U.S. OFFICIAL THINKING AS IT DOES IN SPECULATION BY THE PRESS, FOR THE REASON THAT PEKING AND WASHINGTON ALREADY HAVE EXTENSIVE CONTACTS WHICH PERMIT DEEP EXCHANGES OF VIEWS.

THIS, AFTER ALL, U.S. OFFICIALS EMPHASIZED, IS WHAT IS DESIRED IN A RELATIONSHIP BETWEEN TWO COUNTRIES.

WHEN SECRETARY KISSINGER FIRST VISITED PEKING IN JULY, 1971, U.S. OFFICIALS NOTED, NEITHER SIDE KNEW EXACTLY HOW FAST THE SINO-AMERICAN RELATIONSHIP WOULD GO OR HOW DEEP IT WOULD ULTIMATELY BECOME.

THE GENIUS OF THE TWO SIDES' APPROACH HAS BEEN EVER SINCE THAT THEY DO NOT TRY TO SPELL EVERYTHING OUT; AND, FOR THIS REASON, SECRETARY KISSINGER DID NOT ON HIS LAST VISIT TRY TO EXPLORE EVERY DETAIL THAT THE CHINESE PREMIER HAD IN MIND.

HE DELIBERATELY DID NOT DO SO, U.S. OFFICIALS SAID, BECAUSE BOTH SIDES MUST THINK SOME MORE ABOUT WHAT COMPLETE MEANING CAN BE GIVEN TO THE PRINCIPLES ALREADY ESTABLISHED.

BUT, IT WAS STRESSED, WHILE ISSUES ARE COMPLEX, THE UNITED STATES EXPECTS A DEFINITE FURTHER EVOLUTION TOWARDS NORMALIZATION.

ITEM

11-15-73/AA

AMERICAN EMBASSY, TOKYO
POLITICAL SECTION
TRANSLATION SERVICES BRANCH

JAPANESE MORNING PRESS HIGHLIGHTS

November 16, 1973

LEAD STORIES: All papers, except the Asahi, took up the Government's oil crisis countermeasures as their lead stories, with the respective captions saying: "Main Focus of Emergency Legislation Is on Commodity Prices; Additions and Revisions Made in General Outline of Oil Countermeasures; To Be Decided at Cabinet Meeting Today; To Prevent Uncalled-for Price Raises; Promotion of Development of New Energy" (Nihon Keizai); "Overall Countermeasures to Save Oil; Government to Decide on Emergency Measures Outline Today; Plans 'Livelihood Stabilization Law'; In Conjunction with Curbing of Consumption" (Mainichi); "To Include 'Commodity Prices Control' in Oil Countermeasures; Cabinet Members' Conference Every Day; General Outline to Be Decided Today; To Prevent Uncalled-for Price Raises; 'General Mobilization' of Anti-Monopoly Law, Etc." (Yomiuri); "To Formulate 'National Economy Stabilization Law'; General Outline of Oil Countermeasures Today; Government to Devote All-out Efforts for Commodity Prices Countermeasures; To Include Price Freezing Ordinance; Surcharge on Price Raises, Taking Advantage of Situation" (Sankei); and "Control Coloring to Oil Countermeasures; To Contain Price Freezing; To Absorb Unjust Profits by Taxation; General Outline to Be Decided at Cabinet Meeting Today; Revisions Made in Commodity Prices Countermeasures at Prime Minister's Instructions" (Tokyo Shimbun).

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

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

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

1. Frank exchange of views was held, centering on the Middle East problem. It is the U.S., which holds the key to the peaceful settlement of the Middle East conflict, and therefore, we requested continued U.S. efforts for a fundamental settlement at an early date. In response to this, Secretary of State KISSINGER also said that utmost efforts will be made with that intention, and that he also thinks that the U.S. holds the key.

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

3. In response to these assertions of the Japanese side, Secretary of State KISSINGER also stated his views. However, he expressed the wish that they will not be announced publicly, because they have not yet been reported to President NIXON.

U.S. State Department spokesman MCCLOSKY, who is accompanying Secretary of State KISSINGER, held a press conference at a hotel in Tokyo on the 15th, and stated, in gist, as follows, concerning Secretary of State KISSINGER's talks with top Japanese Government leaders, including Prime Minister TANAKA and Foreign Minister OHIRA, and on the Middle East problem:

1. While the scheduled visit to China was being put off, the Middle East War arose, and the nature of the talks with Japanese Government leaders also came to change. Originally, we could have talked quietly about international questions, in general, but at the talks with Prime Minister TANAKA and other top Japanese Government leaders, the central subject matter was the oil problem. The Secretary of State also understands that oil is an extremely important problem for Japan, and we intend to continue talks for the adjustment of differences between Japan and the U.S. over energy policies, in the future, too.

2. Talks were also held on the declaration among advanced industrial countries (the so-called KISSINGER concept). The U.S. way of thinking is that Japan should participate in the U.S.-European declaration, in an appropriate form.

3. We are satisfied over the fact that the KIM Dae Jung Incident is heading in the direction of settlement, but the Secretary of State's visit to the ROK has no connection with this problem. (Full translation)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

With regard to this problem, Chief Cabinet Secretary NIKAIDO said, at his press conference on the 15th, "There is not even a smell of the personnel problem. The biggest task is how to cope with the serious problems of oil and prices." Thus, he clarified that a personnel reshuffle is not, at present, a focal point of the political situation. (Full translation)

The Asahi, on page 2, stated Deputy Prime Minister MIKI's views on the oil problem, carrying the captions "Positive Policy toward Arabs; Need to Put Situation Back to State before Six-Day War -- Concept Shown by Deputy Prime Minister MIKI." The report said:

Deputy Prime Minister MIKI clarified his views on the immediate oil crisis at a general meeting of the LDP MIKI Faction held on the 15th. In his speech, MIKI emphasized that the Arab nations' distrust toward Japan should be dispelled through efforts for the following: (1) Along the line of UN Security Council Resolution No. 242, withdrawal of Israel from the occupied areas will be sought, and the Middle East will be put back to the state before the Six-Day War of 1967; (2) The existence of Israel shall be guaranteed internationally; (3) The Palestine refugees shall be given a place for peaceful living. MIKI said that for this purpose, this is the time to take such positive actions as offering a large-scale increase in contributions to the United Nations and aid.

As to domestic politics, MIKI stressed that the crisis of resources and energy cannot be tided over by a continued force of habit under the hitherto-taken high-rate economic growth policy. He stressed the need for a bold policy change toward giving priority to welfare in the true sense of the term, and said, "The view that a misfortune should be turned into a blessing is necessary." (Full translation)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EDITORIALS: The Mainichi, in its editorial titled "Establish Orderly Countermeasures Against Oil Crisis," emphasized that the present oil crisis is not temporary in character, because it has its cause not only in the recent Middle East War but also in the strategy taken by the Arab nations with consideration for the possible exhaustion of their oil resources. The paper also said that the prices of crude oil, which have been raised drastically, will not be lowered, even if the Arab nations relax their policy of cutting oil production. The paper said Japan has no alternative but to curtail its oil consumption in order to overcome the present oil crisis. The paper also said that the international oil crisis has exposed the vulnerable position of Japan as a great economic power without indigenous resources. The paper urged the Government to re-examine its economic policies fundamentally on this occasion. The paper expressed the view that the Government should reduce the scale of the next fiscal year's budget, re-examine the drastic tax reduction plan, and postpone the construction projects including the construction of a network of new National Railway lines.

The Yomiuri, in its first editorial titled "Abolition of Two-Tier Gold Price System and Currency Reform," said that the agreement on the abolition of the two-tier gold price system, which has been reached among seven Western nations including the US, has great significance because it represents an advance toward abolition of gold as a standard currency. The paper also said that the abolition of the two-tier gold price system will not affect Japan directly, but will give an impetus to the upward tendency of the value of the dollar and the decline in the value of the yen in the international foreign exchange market. The paper stressed the necessity of establishing thoroughgoing countermeasures against inflation. In its second editorial titled "UN Debates on Korean Problem and UN Forces," the Yomiuri said that the discussions and debates on the Korean problem, which began at the UN on the 14th, will be characterized by the confrontation between the pro-ROK nations and the countries supporting North Korea. The paper hoped that the US will no longer adhere to its policy of maintaining the UN Forces in the ROK, saying that the presence of UN Forces in the ROK is an obstacle to the peaceful unification of Korea. The paper said that the enforcement of the Armistice Agreement in Korea will be assured, if North and South Korea implement the spirit of their Joint Communique with the backing of the UN.

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

The Nihon Keizai, in its first editorial titled "What Abolition of Two-
Tier Gold Price System Signifies," said it remains to be seen whether the
abolition of the two-tier gold price system, which has been agreed upon among
Western nations including the US, means a substantial advance toward
abolition of gold as a standard currency. The paper said, however, that the
US can strengthen its position toward Japan, European countries and the Arab
nations, if the exchange value of the dollar rises, even temporarily, as a
result of this step. The paper said Japan should argue for solution of the
international currency problem at the IMF, instead of by some advanced
nations. In its second editorial titled "Restore Prestige of Rice Price
Deliberation Council," the Nihon Keizai said that the manners of the
Government and the LDP in the determination of the producer and consumer prices
of rice for this year have created the impression that the "political"
intervention in the determination of these prices, which is primarily an
administrative problem, has exceeded the necessary limit. The paper said it
must be studied how to enhance the prestige of the Rice Price Deliberation
Council as an organ for determination of rice prices.

The Asahi, in its first editorial titled "Abolition of Two-Tier Gold
Price System and Its Effect on Yen," said it is not convincing that the
abolition of the two-tier gold price system was decided upon by seven
Western nations alone, and not after discussions and debates among 20 IMF
nations, and has been announced unilaterally by the US Government. The paper
also said that this step cannot be regarded only as an advance toward
abolition of gold as a standard currency. The paper expressed the view that
this step may even produce the effect of restoring the functions of gold as a
standard currency, because gold has been virtually frozen by nations. The
paper said that Japan, whose gold reserves are very limited, will be driven
into a disadvantageous position in that event. The paper also expressed the
fear that this step may give an impetus to the progress of inflation throughout
the world. In its second editorial titled "US-China Relations Making Steady
Advance," the Asahi said that the US-China Joint Communique, which was issued
on the 14th, has made it clear that US-China relations have been making a
steady advance toward improvement since President NIXON's visit to China.
The paper also said, however, it will be difficult for the US and China to
establish formal diplomatic relations between them, unless the Taiwan problem
is solved.

The Tokyo Shimbun, in its editorial titled "Politics and Livelihood under Emergency Situation," said there is the impression that Japan has been driven into a "panic" by the oil crisis. The paper said it is most important for the TANAKA Cabinet to curb inflation and restore the confidence of the people. The paper also said that the Government should drop its plan for remodeling of the Japanese Archipelago and establish a new course for the Japanese economy. The paper also urged the people to co-operate with the Government for economization on resources and curtailment of consumption.

Mainichi Shimbun 11/16/73 evening edition page 1

U.S. Secretary of State Heads for Seoul

米国務長官 ソウル入り

中東の石油問題などについて田
中育相ら日本政権は語り合う
ため来日していた幸恵مسنة
米国務長官は、十六日午前八時十
分羽田亮の特別機でญ日し、ン
ウルに向かった。

Nihon Keizai Shimbun 11/16/73 evening edition page 1

Secretary of State Kissinger leaves for Seoul

キ国務長官

ソウルへ

キッシンジャール来国務長官は十一日午前八時十分、特別機で羽田空港をたち、次の訪問国韓国へ向かった。望まには殷眼外務次官ら外務省関機着陸を予定した。