Tokyo, September 12, 1957

No.51
TO : His Excellency
The President
FROM : Tai Ha Yiu
When I saw Yatsugi last evening I solicited his help to get the high level Jap authorities to accept our terms. At our meeting this afternoon at the Imperial Hotel, he related to me his activities during the day.
At 8:00 a.m. this morning, Yatsugi met Kishi who voiced anxiety over the detainee and property claims issues and expressed regrets that the Korean side failed to understand that his sincerity was genuine. Kishi told Yatsugi that since it was not possible for him to explain his difficult situation to the Korean side, Yatsugi should do it for him. Personally, Kishi is not concerned about the Korean amendment proposals and he would like to accept them, Yatsugi said, if it were not for so much bitter opposition from his political foes. Kishi further advised Yatsugi to get in hand with Tanaka and see that Kono and the finance authorities come to some understanding.
At 10:00 a.m. Yatsugi met Fujiyama who, being close to Kishi, was sympathetic, and knowing the anxiety and difficulty confronting Kishi was most understanding. However, Fujiyama voiced his annoyance at the Korean side insisting only on its own terms. But with the problems having to be settled, he told Yatsugi to exert all efforts as he would not be able to do anything personally since he would be leaving tor the U.S. on the 14th.
In the afternoon, the meeting of Yatsugi, Itagaki and Tanaka took place as scheduled. Tanaka shared Kishi's views as did Itagaki, but since the opposition was so strong, they in turn asked Yatsugi to do something in his freer position.
At 2:00 p.m. Yatsugi went to see Kono and when he explained the situation, Kono's reply was that not being a diplomat and inexperienced in such matters, he was not in a position to say anything. What he could say however was that he had never heard of one-sided concessions as the right kind of diplomacy. Kono reminded Yatsugi that before he departed for the U.S. last summer, Kishi called for an emergency cabinet meeting saying that the agreements between Korea-Japan were about to be concluded. The cabinet members waited for four hours but at the end of that time were told there was to be no signing. According to Yatsugi, Kono was adamant saying there must be no further concessions adding that he would have to consult with his staff. However, his parting remark was that Kishi being the prime minister, if he insisted on doing so despite the opposition, there was no one to stop him.
In his meeting with Ichimada, the finance minister late in the afternoon, the latter expressed his fears that the Korean side might claim a tremendous amount and although the conference could be broken off anytime, it was meaningless to open it just to break it off. Having been a financier all his life, there was no nonsense about him, Yatsugi said. Ichimada will leave for the U.S. in a few days to attend the IMF conference.
From his conversations Yatsugi received the impression that a very long time would be taken to bring them to understanding. It is a Kishi cabinet, but his ministers are more bent on hurting him than helping him, he said.
In conclusion, Yatsugi stated that together with Tanaka and Itagaki he would try to get something done, for however strange the situation was, Kishi is still the president of the party and prime minister of the government.