Tokyo, March 17, 1956

TO : Office of the President
FROM : Minister Yong Shik Kim
SUBJECT : Report on Japan's Relations with Red China
Since its formation, the Hatoyama Cabinet has strived for seeking same adjustment of relation with Red China and the other Communist areas without endangering Japan's relations with the United States. It was at the time of the general election in Fabruary, 1955 that Prime Minister Hatoyama clearly pledged to "adjust Japan's relation with Communist China".
The Japanese Foreign Office regards Communist China as a regime having already established "a firm basic as a State and one of the influencial power's in Asia which cannot be overlooked"(Please rafer to Political Report No.7) . In its view, there would be little possibility of internal turmoil or counter-revolution in China mainland. As Foreign Minister Shigenitsu told the sudgetary committee of the Upper House on January 10, 1956 that "the time is not yet ripe for Japan to recognize Communist China regime in view of the present international situation, the Japanese access so far to Red China was not intended to be for the immediate establishment of de jure relations but gradual accumulation of de facto relations in various fields. In Foreign Minister Shigemitsu's view," the Peace Treaty between Japan and Nationalist China posed, in a sense, an "obstacle"to the recognition of Peiping"(January 30, 1956, Plenary Session of the lower House). This view was endorsed on several occasions by Prime Minister Hatoyama. But in his view," it is,(however), desirable to take every opportunity to promote close relations with Red China",... and if necessary, he does not hesitate to meet had China's Premier Chok En-Lai"(January 10,1956, Sudgetary Committee of the Upper House. )
The statements of the reaponsible Japanese officials appear to be somewhat confusing, but there is little doubt that the real intention of the present Japanese Government is to promote factual relations with Red China so far as they are deemed to be for the interest of Japan.
On the side of Communist China, its post-war policy towards Japan is considered to have changed up to the present time through three stranges: at first stage, which is the period ending at the time of the San Francisco Peace Treaty of 1951, it took a hostile attitude against Peace Japan to destroy unconditionally "imperial Japan"; at second stage,which is the period starting around the said Peace Treaty, it viewed Japan as a puppot regime of the United States, and therefors planned to isolate her from the other Asian countries and separated the Japanese Government from its people; at third stage, which is the period starting at the time of the Red China-Russia Joint Declaration in October, 1954 which called for normalizations of relations with Japan "step by step", it followed the Soviet pattern of smile offensive,trying gradual approaches to Japan through "unofficial"organizations in various fields for the final goal of normalization of relations. At the present moment, it cannot be denied that the ultimate goal to be attained for the Red China's policy towards Japan is firstly, to detach Japan from its alliance with the United States and friendship with the non-communist world, and secondly, to open the way for rarther Communist infilltration into Japan.
It was at the above-mentioned stage that Chou Eu-Lai proposed on three occasions normalization of relations with Japan: First, on August 17, 1956; second, on November 4, 1955; third, on January 30, 1956.
In Japan, the Red China issue is one of the subjects for partisan debate between the Liberal-Democratic Party and the Socialist Party. For the Socialists, "the time has come for Japan to normalize relations with Communist China"(Please refer to Political Report No.3). They are likely to consider it best for Japan to promote trade with communist China so that the accumulation of faits accomplis will eventually serve as Japan's recognition of that regime. It was for this reason that Mr. Mosaburo Suzuki, Chairman of the Socialist Party, advocated to hold "talks on ambassadorial level"when Chou En-Lai proposed a talk for normalization by the Japanese Government.
At the present stage, an immediate concern of Japan in relation to Red China seems to exist mainly over the problems of trade, fishery, detainees in Red China and so on. For these purposes and some other political purpose, a considerable number of Japanese nationals(640 for the past three years until the end of 1955--Please refer to Political Report No.13) made trips to Communist China, though since the early part of last month, the Japanese Government has imposed restrictions to a certain extent upon issuance of passports to those desiring to visit Communist China for purposes which are deemed "political". For these purposes, the Japanese Government is said to be studying a possibility of concluding a postal agreement with Communist China to commence postal services (Please refer to Political Report No.16).
The characteristice of the gradually accumulated relations between Japan and Red China is that all intercourses were so far made in the names of 'unofficial' or 'private' organizations of both parties, despite the open secret that a number of the so-called unofficial activities were, in many cases, encouraged and at least, admitted by the Japanese Government and despite the incredible allegation that the so-called private organizations of Red China is 'private'. Thus, a fishery agreement was signed on April 15, 1955, and renewed on May 8, this year(Please refer to Political Report No.18) in the names of "Japan Fishery Council"for Japan and "China Fishery Council"for China. With a view to the promotion of trade,"Japan-Red China Export-Import Association"is said to have been recognized by the Ministry of International Trade and Industry to represent Japan in the negotiation for conclusion of the fourth "Japan-Red China Trade Agreement",as the third agreement on the same subject expired on the 3rd of this month. (As for trade volum for the foregoing year, Please refer to political Report No.8). An agreement on exchange of cultures was signed on November 28, 1955 in the names of People's Association for Protection of Constitution headed by Mr. Tetsu Katayama, a Socialist member of the Diet and the formen Prime Minister, and the Red Chinese counterpart. An agreement on labor problems was signed on November 28, 1955 in the names of the Japanese delegation representing Japanese labor unions and Red Chinese counterpart.
There are good reasons to believe that the Japanese Government is, behind the scene, pulling the strings of these "unofficial" organizations to push its Red China policy. Observers consider that a number of 'private' organizations in Japan on their part a role as pressure groups or lobbyists, some of them being closely related to the Socialists. Among those organizations, the following are considered most important: Japan-China Anity Association, headed by Jiichiro Matsumoto, Socialist member of the Upeer House; International Trade Promotion Council of Japan, heaede by Shozo Aurata, former wartime Ambassador to the Philippines; National Council for Restoration of Deplomatic Relations with the Soviet Union and Communist China, headed by Fusanosuke Kuhara; Dietmen's League for Promotion of Japan-China Trade, headed by Tsunejiro Hiratsuka, Liberal-Democratic Representative and President of Nochiro Fishery Company; Japan-Asia League Committee, headed by Kunisuke Wagano, Tokyo lawyer.
A most crucual one of the questions with which Japan is faced vis-a-vis led China may be the trade problem. At the time of the Eisenhower-Eden Declaration and Communique of February 2, 1956 Please refer to political Report No.6), the Japanese Government officials seem to have foreseen a possiblity of relaxation of trade controls. When U. S. Secretary of State Dulles visited Japan two month ago, the Japanese Government Officials requested him for American initiative for easing the embago. But, for the present moment, little can be predicted in favor of Japan's earnest desire to increase the volume of trade with Red China.
A few jays ago(May 12,1956), Communist China's Premier Chou En-Lai wooed Japan again when he announced at Peiping that Communist China would release some 1,000 Japanese war criminals, though the same promise made last November by Mao Tse-tung failed to materialize. Chou's statement is considered to be well timed as it came at the time of the signing of Russo-Japanese fishery agreements, which are to come into force with a peace treaty between the two countries to be concluded and which would probably realize the release of detainees in Russia.
Japan will continue to make its efforts to accumulate factual relations with Red China in the direction of the de facto recognition of the Red China regime, especially for the interests of trade, fishery and detainess.
On the other hand, Japan has been carefully watching every development of the Johnson-Wang ambassadorial talks between the United States and Red China, which has been held at Genova since August 1,1955,though it came to a deadlock in January this year.
Some diplomatic observers here, who consider that the recent Russo-Japanese fishery accord opened the way for the establishment of diplomatic relations with the Soviet Union, are carefully watching what move the Communist China will take and how the Japanese Government will react to it, if any.
Copy to: Foreign Minister