May 8, 1956

From Miura
A confidential report was sent to Hatoyama directly by Kono some of the contents of which have been reported in the newspapers. Although the report came in code to the Foreign Ministry, it was sent directly to Hatoyama to be deciphered and the Foreign Office learned most of the accurate happenings from dispatches which special correspondents of the big major papers who followed Kono to Moscow such as the Yomiuri, send to their head offices.
Kono sent word to Hatoyama on the 7th requesting that he be given plenipotentiary powers to sign agreements with the Russians. No doubt, Hatoyama has already been informed. The Foreign Office had been rather afraid of receiving such a request but if Hatoyama instructs the Foreign Ministry there is nothing it can do but obey. However, it is not known what the opposition members in the L-D party will say to this. Kono further reported that the Russian attitude is stronger than expected and that the situation has fallen into a grave state. He stated there is nothing for Japan to do but recognize the restrictions placed by the Russians, such as licensing of Japanese fishermen although it is not the policy of the government. Kono said he told Ishkov he will have to get the concurrence of the government although he is 100 per cent sure the government will agree to it and as a counter proposal, told the Russians that Japan cannot agree to the restriction on the amount of catch and instead suggested a shortening of the fishing period which will automatically cut down the amount of catch.
Russia proposed the term of the fishery agreement to be for a period of 10 years and gave many scientific reasons for naming such a period. However, Kono proposed an yearly extension of the agreement until a peace treaty is signed between the two nations. Ishkov than wanted to know how soon a treaty of peace would be signed, but Kono had no answer available. He wrote that Japan can do nothing except concede on the two principles, and requested that he be given plenipotentiary credential to conclude necessary treaties. The Foreign Office had expected Kono to make such a request and it is now in a very hard position since this will mean going against the policy of the government.
As stated in the papers, Domnitsky's replacement is scheduled to come to Japan very soon. He is the counselor in the Russian Embassy in London. Even as an unrecognized diplomat, Domnitsky contributed more than his share to the troubles. Now if his replacement is allowed to enter Japan officially, who knows what he will do next. But if the government does not agree to his coming, the fishery problem will become a dead issue. "Kono will come to some agreement with the Russians and when he returns home, the Liberals will not leave him alone. Kono will meet with Bulganin on the 9th and at this meeting it is surmised that he will discuss diplomatic problems and we do not know what commitments he will make. The present big tragedy of Japan is that her hands are tied because of the public uprising if the government does not agree to the Russian terms, and fishery being an important means of livelihood of the Japanese people, we cannot be too strong in insisting on our own terms and must act contrary to our policies.
With this situation prevailing, it will be impossible for Shigemitsu to remain as the foreign minister. His diplomatic policies conflict fundamentally with Hatoyama's. Although he is the foreign minister, Kono does not want to have anything to do with him. Not only Kono but everyone close to Hatoyama give Shigemitsu the cold shoulder and ignore him completely. Shigemitsu might not be a genius but he is the only remaining diplomat of the old school although he may be a mere robot now. If a cabinet reshuffle is to be carried out, Shigemitsu will be the first to go and will be replaced by Matsumoto. Like Kono, Matsumoto wants to settle the problems with Russia and if these personnel changes take place, the overall diplomatic policies will undergo a very big change and the relations between Japan and U.S. will be very badly affected.
The fishery issue itself is a concession on the part of Japan and she is forced to make it since fishery is a vital part of Japan's economy.
The same is with the Rhee Line. Although there is no time now to take up K-J problems, they will become the next issue of dispute and the officials of the Foreign Ministry are fast preparing their reports."
The Japs are having a very hard time with the Russians and are forced to give in to most of the Russian demands. This will be a good example for us.
The papers of this morning stated that after the present Diet session, Shigemitsu will be replaced.