Document No.

Date : Jan 29,1958

Re The 4th Korea-Japan Talks
GENERAL PROVISION
1. The instructions previously issued are still standing unless they are revised in this instructions.
2. In order to bring about an earlier showdown, we are prepared to make simultaneous discussion on all questions at the forthcoming talks. The Delegation should do its best to bring the discussions of committees to final stage, to lay down a basis for possible
political settlement.
3. Several alternative positions, stronger and weaker, to be followed by the Delegation at each committee are set forth in this instructions. The Delegation should recommend for government decision whether and when it will present to the Japanese side the last line of our position without which we will not sign an agreement on such question.
A. Committee on Korean Claims
I. Art Objects
1. It is reminded again that "Korean art objects mean all classical books, art objects in narrow sense, curios and other national treasures. As for the range of time of removal from Korea of Korean art objects, our position is that the Japanese Government should turn over to us all those art objects taken away from Korea since 1905." (Refer to PS/9 dispatched by FT-006, February 10, 1958)
2. There is no essential change in our position that we intend to pursue not only those Korean art objects in the Japanese Government possession but also ones privately owned by Japanese nationals or organizations.
3. As for art objects excluding classical books, we prepared for claims a list of 12,489 items of them (see Annex I page 2) which includes 6,471 items in the Japanese Government possession and 6,018 items in private possession. The Delegation is instructed to negotiate with the Japanese side for having these items returned as soon as possible. Even in case the Japanese side refuses under any circumstances to deliver the objects in private possession, we must claim 80 registered items (see Annex I page 3) of them. The Delegation is exclusively informed that the 935 items included in "Itemized List of Cultural Properties (Art Objects and Archaeological Materials) firstly requested for restoration"
(See Annex I page 3) except the above mentioned 80 items, plus 489 items which the Japanese side presented us the other day (see Annex I page 4) are those items without which we will never sign under any circumstances an agreement on the subject.
4. The talks for classical books should be settled also with the settlement of the other art objects, and a list of those books are s-own in Annex I page 2 and 3. The Delegation is exclusively informed that the books of Naikaku Bunko and Kunaisho Toshoryo excluding those removed from Korea before 1905 are those without which we will never make compromise with the Japanese side.
II. Return of Vessels
1. The procrastinated negotiation was conducted for the problem of return of vessels, value of which is considerably small as compared with the other claim against Japan. But we did it, in the first place, to sound out what the Japanese side has in mind and to know thereby how it will come to us at the other claims. Now that the intentions and legal argument of the Japanese Government were revealed to some degree, we do not want to waste more time at the forthcoming session of the Sub-Committee on Vessels.
2. The Delegation is instructed to present to the Japanese side the list of the whole vessels belonging to Agenda items A and B which was enclosed in the Government instructions 0J-2087 dated June 7, 1958. The Delegation should refrain from exchanging argument on the legality of our claims but should request the Japanese side for answering how much tons of vessels it is ready to deliver to us,
3. The Delegation is exclusively informed that the 32,009.69 tons of vessels under Agenda item A Included in the list attached herewith (Annex II) plus 76,638.95 tons of whole vessels under Agenda item B are those tonnage without which we will never sign an agreement on the subject.
4. The Delegation is authorized to take up the question of Agenda items C and D. As for these items, our side is ready to take into consideration the Japanese request if it meets our request under Agenda items A and B.
5. If, in the judgement of the Delegation, there is no prospect of earlier settlement, the Delegation is authorized to shelve up this question for later settlement along the line of the settlement of other claims.
III. General Claims
1. It is reminded that, for convenience' sake, the Sub-Committee on Other Claims deals with Korean claims on agenda by the two categories: one regarding Korean art objects, plus map negatives, the part of which has been discussed since May, 1958; the other regarding general claims.
2. There is little doubt as to the proper scope of agenda to be adopted at this Sub-Committee now that they were definitely defined by the Agreed Minutes of December 31, 1957, and there must be no alternative thereto. (The Delegation stated this position at the third session of the Sub-Committee on Other Claims but there was no positive reaction thereto)
3. The Delegation is instructed to present to the Japanese side the same 8 - point proposal of 1952. (Refer to FTB - 033 and 034, 1958) In presenting the above proposal, however, put clearly in record our reservation that the matters stated in Items VII and VIII of the 8 - point proposal will not be taken up for the time being.
4. With regard to our proposal, we considered it unnecessary to give detailed explanations thereon, because they were already given in the past. However, there is no reason why the Delegation should not reiterate, if necessary, our principles along the line of our previous explanations made in 1952 or the eight-point proposal.
5. Discussion priority should preferably be given to the problem of "Bank of Japan notes or other currencies issued by the Japanese authorities in possession of Korean nationals or judicial persons." (Refer to FTB-033 and 034). After discussion of this problem, discussion should preferably be conducted in order of items as stated in Annex III.
6. With respect to the problem of Bank of Japan notes, etc., present our proposal as outlined in Annex III. But the Delegation is especially advised that it should, with utmost caution, prepare theoretical points of view by which the ground for our claims for gold and siver bullion taken away from Korea must not be adversely affected.
7. Our best position is not to enter into discus-sion on the detailed figures of our claims. But it is up to discretion of the Delegation what breakdown of necessary figures will be presented to the Japanese side or in what manner it will be presented, so far as much figures are calculated from the framework of the basic principles defined in Government instructions. However, he Delegation is instructed, at the same time, that it should be careful not to disclose prematurely our preparation of those figures.
8. In discussion item by item of our claims, present to the Japanese side those figures which amount in total to $1,929,220,000 (at the rate of Y15 : $1) (Annex III-Alternative A) by denomination of Japanese currency when there is an exchange rate problem and by denomination of US dollar when there is no such problem. The Delegation is exclusively informed that the figures of Annex III - Alternative C is the last line without which we will never sign the agreement.
9. The Delegation should not lose too much time with the Japanese side for exchanging legal points of view underlying or refuting our claims. Put in record by appropriate means what the Japanese side presents with respect to legal interpretation of documents concerned or legal arguments contradiction our claims if it does.
10. As for Statement of the U.S. Position on the Interpretation of Article 4 of the Japanese Peace Treaty with respect to the Korean-Japanese Claims Settlement of December 31, 1957, we will never take up this question until and unless we can see a good prospect of settlement of all of our claims, no matter how the Japanese side desires to do so. We think so not only in the light of our interests but also in the light of the nature of the said document.
B. Committee on Fishery and Peace Line
1. By government instructions 0J-4563 dated December 4, 1958, the Delegation was instructed as follows: "The Japanese proposal for a provisional fishery agreement of November 28, 1958 is hardly worthy of any serious consideration. However, this is not a right time for us to irritate unnecessarily the Japanese side at the above-mentioned committee, for, even at worst case, we have to avoid a rupture at this stage." This government position is still standing.
2. There is no essential change in our position by which we believe the Peace Line is a best way of preventing the two nations from having any disputes on the seas.
3. We believe that unless the Japanese side agrees with us on fundamental principles, it is not helpful for us to present an article-by-article proposal on this issue. However, with a view to finding out a way of expediting the settlement of the issue, we suggest the following points for serious Japanese consideration:
1) We are ready to admit the Japanese fishing in the Peace Line areas east of our trawler prohibition line in the East Sea (a triangle area) without affecting the status of the Peace Line:
2) Japan should not fish in the Peace Line waters excepting the foregoing area for the period of five years from the coming into force of the treaty
3) In the waters outside of the Peace Line, we are ready to recognize Japan's preferential rights for fishing.
C. Committee on Legal Status of Korean Residents in Japan
1. We had no objection to discussing on our draft agreemt of October 20, 1958 article by article. But to save time and to expedite the discussion, the Delegation should request the Japanese side to present to us its counter-proposal covering whole articles, if it is unable to accept ours.
2. By government instructions OJ-4355 dated November 24, 1958, the Delegation was advised that "the Government is ready to receive all Korean residents in Japan for their settlement to home, if the Japanese Government pays due compensation for the present predicament for which the Japanese Government should be responsible." The Delegation is reminded that this is still the government position by which a best solution will be made on this issue. If an approach is made to the problem from this angle, there is no problem at all concerning 'criteria' for deportation of Korean residents, etc.