Tokyo, November 27, 1958

No.223
TO : Office of the President
FROM : Minister Tel ha Yiu
I called on Minister of International Trade and Industry Tatsunosuke Takasaki at 10:30 this morning and talked on our export of rice and laver. Also present were Consul-General Ea, Chai Hang and Director Matsuo of the International Trade Bureau of MITI.
Mr. Takasaki first expressed his regrets for what the Japanese did to the Koreans in the past and asked for our forgiveness. He said he was once an Acting Foreign Minister under the late Mr. Shigemitsu and considered himself related to diplomatic matters. From his experience as such he had long wanted to have this opportunity of meeting us and convey his feelings toward the Korean people.
He continued, the Korea-Japan talks are now underway as a result of tireless efforts of everyone concerned and he sincerely hoped that a settlement would soon be reached. He said, he knew there were still some elements who are not repentant enough, but these were in the minority and it is possible for the two peoples to maintain friendly relations in the future.
Reciprocating his friendly sentiments, I told him that he was one of the few Japanese personalities, upon whom we look for an early settlement of the pending problems and hoped that he render his assistance in making the current talks a success.
Turning to the main subject of our visit, I reminded Mr. Takasaki that the current Korea-Japan trade is extremely one-sided with Korean purchases from Japan amounting to nearly ＄60-million (including ICA purchases), while Japanese import from Korea totaling only $10-million or thereabout. I told him that there are a number of items available for export to Japan, however, for some unknown reasons Japan withheld her purchases from Korea in the past. It was an extreme case of trade unbalance and should not be permitted to last long, I continued.
I said there are now some 1-million dollars worth laver exportable in Korea and also some 200,000 tons rice. If he really wanted to show sincerity to us, I said, there is a good chance to do so now by deed.
Minister Takasaki, after listening to Matsuo's Driefing, told me that he had heard from Matsuo about the laver issue and from premier Kishi on the rice matter. He then explained lengthily on the circumstances leading to Japan's inability to import these items from Korea. He also said that he had heard a report that Korea might reconsider its purchase of fertilizers unless Japan agreed to import Korean laver and rice and thought it very regrettable and sorry for us, for causing such a situation.
The Japanese explained to us that Japan is already committed to buy rice from Italy, spain, Taiwan etc. and it is quite difficult to alter this plan. however, Takasaki said, he would do his beet to reduce the amount expected from other countries to enable Japan to import some amount of rice from Korea. For this purpose Japanese government agencies concerned are working on technical matters to make this deal possible.
Takasaki further asked me to ask his help not only on the trade matters but on other political matters, in case I thought his help is useful. He said often it is more difficult to try to settle matters at the administrative-level, therefore, he suggested that I seek top-level political settlement when I encounter difficulty. I replied that merely seeking political settlement would antagonize the administrative officials, therefore, both ways will have to be sought simultaneously.
As the pressmen were aware of our meeting this morning, we then agreed to tell them that the meeting was conducted in a quite friendly atmosphere and the Japanese side promised its best to make the Korean desire possible.
Although we have not been able to decide anything on the amount of our rice to be exported or other conditions, yet Mr. Ea and I got the impression that Mr. Takasaki will really do his best to import our rice, if not the full 200,000 tons, about 100,000 tons, by working out the technical details. In this sense I believe the meeting today was very fruitful.
As regards my previous recommendations in effect that we make our purchase of Japanese fertilizers contingent upon Japanese agreement to buy our laver and rice, I talked with Minister Song, In Sang and Mr. Marne and learned that there are more complicated matters and it is impossible to make the said purchase conditional as I believed previously.
I did stress to the Japanese officials this morning that they should take into consideration our decision to import Japanese fertilizers in discussing the import of our rice and laver. I believe this argument was somewhat effective and I am happy to report that my meeting with Mr. Takasaki was a fruitful one.
Meanwhile, I asked Counselor Choi to see Minister Ben H. Thibodeaux of the US Embassy to talk on this matter. Gist of their conversation is enclosed herewith for your reference.
Encls.