Tokyo, June 19, 1958

No.76
Excellency:
I. As reported by our Chief Delegate, Ambassador Limb, previously, the third session of the Sub-committee on Vessels was held as scheduled on June 19 at the Japanese Foreign Ministry. Debate at this meeting centered on the Japanese proposition to take up the 141 Japanese fishing boats in question.
At Tuesday's session the Japanese side stated in this regard that the matter could probably be reffered to higher level discussion between the two Chief Delegates for decision, and meanwhile the Sub-committee could proceed with discussion of the other our items on the agenda. Our side in reply stated that the Japanese proposition itself was beyond the scope of the Sub-committee. The Japanese side finally stated that it would give us its reply at the next session scheduled for coming Saturday, June 21, after further study on the matter.
II. In my report No.75 of June 16, I made an observation of Japanese political situation, centering on the characteristics of the newly-formed Kishi Cabinet. In order to supplement my report I am giving below a report on the latest developments with emphasis on Japan's foreign policy:
At the resumed session of the Japanese Diet Tuesday Prism Minister Kishi delivered his domestic and foreign policy speech which, however, was criticized by some quarters as "too abstract" and nothing but "repetition of what he had previously stated". In his speech the His Excellency President Syngman Rhee Prime Minister reiterated his determination to 1) continue his efforts toward the building of world peace through the United Nations, 2) bring about the total banning of nuclear weapons, 3) seek revitalized trade and cultural relations with Red China without extending diplomatic recognition to the Communist regime, etc.
Furthermore, Mr. Kishi, in reply to an interpellation by a Socialist member, told the Diet session Wednesday that he had no plan to form an anti-Communist military alliance with the Republic of Korea and Nationalist China. He went on to say that there was the possibility that either he or Foreign Minister Fujiyama would visit the United States in the near future to strengthen the "friendly ties" between the two countries.
The Japanese Government separately called a meeting of its diplomatic representatives in European countries which began on June 17 in Rome and was attended by all Japanese envoys in the area. It is also expected that the Japanese Government will soon call a meeting of its Ambassadors in principal capitals, such as Washington, Moscow, Amsterdam, Cairo and Bonn, in Tokyo. It is believed that such meetings is designed to re-formulate the Japanese foreign policy following the formation of the second Kishi Cabinet, in accordance with recent changes in international scene.
Another interesting piece of item is the Soviet approach toward the Japanese Government in regard to the recent move to open a direct air-route connecting Khabarovsk with Tokyo. After giving the matter a careful study the Foreign Office here this week formally replied to Moscow that it would start negotiations on an aviation agreement on the basis of strict "reciprocity" and on conditions that the air-route be extended from Tokyo to Moscow. Outcome of the Soviet approach, especially the Japanese counter-proposal, is being watched with interest.
In summing up the above, it can be stated that the Japanese Government, after the lapse of several weeks in the past which was spent due to the recent elections, has finally started resuming its diplomatic activities which had hitherto been at a standstill for a considerable length of time.
With sentiments of loyalty and esteem, I remain,

Most respectfully,
M.T.K