Tokyo, September 10, 1957

No.50
TO : His Excellency The President
FROM : Tai Ha Yiu
SUBJECT : Korea-Japan Problems
Last evening I met chief cabinet secretary Tanaka together with Ambassador Kim. Maruyama, commentator of the Kyodo press, a friend both of Kishi and Tasaka was present. Yatsugi, however, was absent.
According to Tanaka, he met Vice Foreign Minister Ohno and Itagaki and heard of the latter's meeting with me and my refusal to accept his proposals. Tanaka then wanted to know if Itagaki's suggestion could not be accepted by us. I reiterated to Tanaga that our amendment proposal on the property claims must be inserted at least in the agreed minutes and if so I would recommend our government to accept it.
Stating that it was quite hopeless for the administrative level to settle it, Tanaka suggested that the only way was to do so politically. He then asked whether the ambassador and I could guarantee that there would be no further conditions or amendments from the Korean government if the Japanese side accepts the amendment proposal. He added that if the Korean side repeats the same attitude it took last June 13 just when actual signing was about to take place, it would cause a terrible blow to Kishi. It will not be so much the Socialists but the different factions in the government party that will attack Kishi, he said.
Tanaka: "Kishi is anxious to settle the problems. You must accept his sincerity as genuine. If, fortunately, the Japanese side accepts your amendment proposals, you must not repeat your July 13 action."
Rumors have it that the Korean property claims would amount to some five or eight billion. How did such a figure emerge?
Yiu: "We are quite aware of Mr. Kishi's attitude and we knowledge that he is different from his predecessors. However, I have my doubts of the officials in the administrative level in the Foreign and Finance Ministry, although I know Itagaki and you share Kishi's view in that you want to accept our terms."
As to the amount of our property claims, as I have always said, the figures will present themselves during the discussion at the overall talks.
Tanaka: "I believe this matter has to be settled politically as we with our reparations problems. You must know that our attitude is not unreasonable. You will realize that when you read article 4a of the Peace Treaty."
Yiu: Will you be able to give us a definite reply next week?"
Tanaka: "I am going to Yamaguchi again and will return next weak. I shall talk to Kishi and see that something is gone. But it will take time."
Although I wit not very confident that the Japs would accept our proposal that the amendments be inserted at least in the Agreed Minutes, there is a probability that they might.