Tokyo, January 6, 1959

No.246
TO : Office of the President
FROM : Minister Tai Ha Yiu
At 2:30 this afternoon (Tuesday) US Ambassador Douglas MacArthur II paid a return courtesy call on me and we talked for about 40 minutes. He wanted me to convey his and his wife's personal wishes for a prosperous New Year to Your Excellency and Mrs. Rhee. I told his Your Excellency regards him highly partly because of his own distinction and partly because of his great uncle, General MacArthur. He responded humorously that it was mainly because of his uncle.
Touching then upon the Korea -Japan negotiations, the US Ambassador asked me about the current statue, to which I replied that although they were in recess now, we would resume Committee sessions on Jan. 26 and that I was scheduled to see Mr. Sawada this afternoon.
Mr. MacArthur, repeating his confidence in Premier Kishi as a sincere personality not only for the settlement of the Korea -Japan relations but the problems pending between the United States and Japan, said that he still believed that it was to the advantage of Korea to reach a settlement while he (Kishi) is in power. He thought that the sooner a settlement is reached, the better for Korea, because Korea is losing her bargaining position as the time ran out. He, however, made clear one thing. Namely, in view of the position of the US Government toward the Peace Line, he could not support our stand in this relation. He suggested instead that if our two countries reached agreement on some conservation measures without regard to political significance of the Line, it would be to mutual benefit. He continued he would exert his effort to urge the Japanese to make as such concession as possible on the other issues, advising against the break-off of the talks.
In this regard, I told his that at a meeting between Sawada and Limb and myself some time ago, there was a suggestion on some workable measures to settle the fisheries issue (on which I reported in detail previously) and was certain that a settlement was possible if Japan took a sincere attitude on a few minor points. I also informed him about Vice Minister Yamada's words that art objects after 1905 now in governmental possession will be returned to Korea in due course. Apparently, he had already been informed in this regard.
Lastly I asked his continued assistance on the sale of our rice, to which he said although he could ▣▣ assure me, yet he did not think the deal was totally impossible despite Japan's bumper crop last year and commitments with various Southeast Asian countries on the purchase of rice. He said he talked with the Japanese officials concerned already in this regard.