FOR INFORMATION No.313

MEMORANDUM

August 3, 1959

TO : Ambassador You Chan Yang
FROM First Secretary Lho
SUBJECT: Discussion on Korea's admission to the U.N., Unconditioned resumption of ROK-Japan overall talks, and the use of counterpart funds for Korean flag ships to carry aid goods.
At 4:30 p.m. today, Ambassador Yang visited Mr. J. Graham Parsons, Assistant Secretary of State for Far Eastern Affairs, at his office and discussed the above subject matters for about 45 minutes. Mr. Bacon, Mrs. Bacon and First Secretary Lho also attended the meeting. The following is a summary of the discussion:
Ambassador Yang told Mr. Parsons that the Korean Government hope, and expects, the United States will bring the case of Korea's admission to the United Nations before this year's General Assembly as she has done in the past. The Ambassador asked that the United States Delegation to the United Nations be so instructed of this.
Mr. Parsons reminded Ambassador Yang that the United States brought the issue of Korea's admission before the Security Council last year, and expressed his desire for more votes in favor of Korea's admission this year. He pointed out the tactical situation in the General Assembly and Security Council, and asked the Ambassador to study carefully Korea's relations with other countries. He also said the admission issue might be interrupted again by a Soviet veto at the Security Council.
To this explanation, Ambassador Yang replied that it is of no matter to us whether the admission issue is actually blocked by the Soviet Union or not but, what is really important, he emphasized, is that we prepare the groundwork for admission and make some sort of plan for this purpose. The Ambassador told Mr. Parsons that the Korean people would be very much disappointed and discouraged, and their morale terribly shaken if the admission question is not presented by the American Delegation before the General Assembly this year.
Mr. Parsons expressed concern about the application for admission of Red China and North Korea from the Soviet bloc, in order to strike
back at the admission of the Republic of Korea. Ambassador Yang said he understood Mr. Parsons ' concern over this matter, and told him that India has already moved to back Red China 's admission to the United Nations.
In reply to Mr. Parson 's question about what Mr. Lodge had done for Korea last year, Ambassador Yang said that Mr. Henry Cabot Lodge had told him it was entirely up to the State Department, and he was just acting acceding to instructions from the Department, ▣Amb. Yang stressed again the importance of bringing this issue before the General Assembly and its effect upon the morale of the Korean people, and he added that the actual number of votes for admission is not as serious a matter as the bringing up of the issue itself before the Assembly.
Mr. Parsons promised he would look into the matter, and let us know the State Department 's decision at the earliest possible moment.
The Ambassador told Mr. Parsons that the Korean people might think the United States was siding with Japan if the admission question was not brought about before the Assembly by the United States Delegation.
Ambassador Yang then turned to the subject of ROK -Japan relations, and told him that the Japanese Government had accepted the Korean proposal of unconditional resumption of overall tolks between the two nations. The Ambassador referred to the so-to-speak, two conditions prerequisite to resuming the talks, and asked that the State Department reconsider its attitude and use its good offices for Korea. He pointed out that it was Japan which had broken promises in the past, and, that first of all, she should show her sincerity and fair attitude.
Mr. Parsons clarified some parts of our "16 Points" in the White Paper, issued at Tokyo, and understood our position in standing ready to repatriate the Japanese fishermen detained in Pusan.
Ambassador Yang then brought up the question of counterpart funds, saying he had met with ICA Director Reddle berger the other day and requested the use of counterpart funds for Korean flag ships to carry aid goods. The Ambassador said Mr. Reddle berger was very much interested in the proposal. He referred to the ICA "Double purpose Aid Policy" which Director Reddle berger is well acquainted with and which is still going on toward Korea and Japan. Director Reddle berger recognized the necessity of injecting some new measures to correct this policy.
The Ambassador said that Japan was prosperous enough and had a better standard of living than any other country in Asia. He said it was no longer necessary for the United States to pursue this policy of "Double Aid" to help Japan in connection with aid to Korea.
Ambassador Yang then strongly emphasized the fact that counterpart funds for military aid must not be cut down. In reply, Mr. Parsons said Congress is keenly aware of the case, and the Executive Branch must wait and see what Congress does. The Ambassador pointed out Korea 's unique situation in this regard, her devastation by war, and requested special consideration be given to Korea.