Apr 4 memo

sEcn]]T/sfNstTl!E MEMORANDU]!I FOR

Mr, Rot€rt S. !nge!solt Assistant secr.tary lor Eaet Asia and Pa.ilic Alfairs

Lisr ol obj€.tives Io!

I

atiu ch

Japan NSSM

lhe list oI otje.tiwes for the Japan NSSM tha! vou a'kea

This list hat .ot 6een sub3tantivelv cleared outside some ol our Etaff here. Since a numbe! ol the objeclives could b€ contloverEial, I asgufte they vill be debaled and sorted out rn the reguia! iissivi Drocesq, bo'\ with ordet oLft-es i- Lhe Depdrmeor '(srate ano vi h ;Lh"r aEerci"s. we re.osaize !'-r sPe!ili(' or some or.he ooje'f,vee may be ctEnged duling that process. We did not hv to deline absoIutes, but to focus attenlion on issues.

We have olganized ihe objectiw€s 6y toPic becanse that i6 bu!€:uclatically c.nwenie.t. lt could b€ done i. oth€! savr. For examPle, one co deyise ihe lolloving three headines: (l)kecping the neneficial el€ments ol our p:st relatio.stlipi (2) managing unavoidable changes oroDerlv: (1, dtr;. Lma rne re'a.roasnip rosard desirrblF ( ransFs orP '.o"ia rnose -r," ".p",*" 't.," obie('i\, s tha_ a_" rapa__."oth'! 't_red,rom and coDtries that wicv Jap;n a. an instrumentality in dealing vith othcr problcms. Though w€ hawc not used these hreakdosns. vou tuv vish !o do so. You may also Iind ihat ii is conccpiuallv helplul to analyzc ihe ohjectives lrom sevcral anel.s.

SECRE:C/SENSTTWE. ODS

SECRET/SENSTTIVE

kiea to dcfine i1]. Policies that vould mow' ns to€id lhese objectives. They vould obviously valv from case io case' Sonetimca we voulil {ani to deal dilectly vith thc JaPanese; at othel rimes ve vould try to dcate conditions which vould indtce the Japancse to mov. in certaia dnecdons. Your stafi vould probably have a mole lrecise feel lor this than I haw€'

l{e

have nor

We have also avoidsd choosing prioriti€s ahong these objectives, though it Ehould he obwious ihat some 2!e much mo!e important than others. One of ihc funciions oI the NSSM Process, we believe, witl lre to try to set priorities at apPloPliatelv high level3

Copy to

M..

Deane Hinton

sEcRf: T/sENstTwE

I.

Muliiht.ralObicctiwes

The !.imary eftpbasis in O.S. -Jalanese relatiors vilt b. on developi.g our bilatcral co.?eration in dealing vith major mdt a&rar issues oI cohmon inhrc.t, and in coordindting policies on such issues.

A. En.rry -- We vish Japan io participaie in a Ieadcrship role in consmcr cooperation eflorts, in order ro .onrlibsie !o rhe

det€rlent effect .f these cohsrmer a"rangeme.t3 a.d to u!€stricted consume! codpetition.

--

We wish

awoid

Japa, to awoia tihtelat commiime.ts outsid.

barket sysreh, and to conii,ue its resrraiditr coEperitive tidding, fo! its oh sake as ve11as for the malket system. ol rhe

-- W. believe Japan shoutd play a majo! and growing role, especially as i€gards capial investEr€at, i, the exploration and dewelopheni of n€w souice3 of energy, particnlarly in Ja!a! and tlom developed ],DC sources.

-- We hope Japan .an grad!2Uy leduce its <lependence otr ihpolted ener8y, a.d divelsify its overs€as soulces oI energy B. International E.ononic Relati.ns -- w€ @nt

Japan to play a leadirg role in devising and impt.mcnting nev and cfi.crive inrernarional tlade ard mon.ta!y ar!an gem€nts.

.

Japan should actively p!ess to sta!i m€aningful i?adc n.soiiations in the GATT and, by offcling siE.ificini con..ssions on both raiitf ana non-taril; barrrers, sholld plny a highly signiticani rolc in bringingthcO 1r n.gotiarions toa succcssful

. Ja?rn should rlay a more a.tive role on relorm ol thc inicrnitionll honctafy ststcm and shonld coniinue to Dranasc iis p.lici.s in v.ys rhat avoid any susg.stion oI ihprowinA its ov! r)osirion at th. erpcns. of orh.rs.

-- w. vant

in.re.sinely to open its ovn tuarket to intcrnrtiotrat invcsLn.rt, including dircct investmcnt, and to 5. a l.f,.l.r in int.i.f,iional nctotiations on euidclincs, prineipl.s lnd othcr arrangehents 1o i'acitibte worldn id. no*s of capitnl.

Japan

-- lvc vant Japan to press foi negoiiations o. export .ontrols ana access !o law materials.

-- Itc vant Jap:n io play a co.siructiwe larr

in

intellationrt !.!angem.nts on lood slockpilca, ircluding handlins its o\er 3tockpile policy in a vay th3t vill tâ&#x201A;Źnd to stabilizc vorld markcts. ii should a13o coopelate turly in any intcrn.tional lood aid allangerera including J.panese pu"cbases ol Iood in thnd martets

il

pIowided.

-- {re w.nt Japar to conliaue to lnclease its corce.3ional itewelopment nssisinncc .nd to ane* this accordi.g to economic reei! laahe! than as a means of 3ssuling access to iaw matelBrs. C.

The U. S. -Jaean-western Eu!ope Relationship

-- Th. liilar.ral rerar.n; iF 5L.nli as;nri. a ol the NATO allinncc .nd the U.S. -Japan aliian.e.

couilGlion

-- A hajor ro.g-lange goal should be a ititatelal consultative mech.nism. Jn ord.r no!r is go4l: 'o 'oqard ' . lac

Bhould, in genelal, ftake cutlent majo" Froblcms oI .ommo. hlerest to the three -- su.h as enerSr, inlcrnational fade and monela"y !efolm, .ci.ncc atrd technoloer, dd environment -- the 3ubjccr ol ad hoc irilatcral .onsultations.

. \!. s\odrd ,\r !rspon.'bt. prrvar"

ds, n.:ee ag

a

supplc.r.Diriy mcans ol exchanging vie*s on major problcnrs ot common interest to the U.S., Japan anil

v.stcrn lrrropc.

-- v,. q.nr JJn..n ro }.lr..o (c. .rr ELrop, rn.-orori. aflairs, prin[rily ihrou!h ,jloba] me.hanishs such as thc OECD, thc IN,IF, f,nd L1& ECG. At thc rame rime, vc shourd not objecr

to Jnpnn'e st.cnstheni.g iis bilalcra1 e.oloftic rclntiorship tith rvdsttrn E ropc so tong a3 it awoids sp.cial tlading or mon.tf,ry relati.nships .s !vc1l as any noblrlc \v.ak.ning ol the U.s,-Jrprn f,lliince. In g.nc!al, we lvant Japan to aim lor intcnsi{n,d cconomic int.rdepcndcnce vith \tcsicrn EEope, as *cll as 1!ith oursclvcs, primarily ny cxpa.dins iis imporis of mantrlach,rcd Eoods from and by e\pandirs ih. Ilav of dir.ct investh.nt to ih. u.S. and lvestcrn Europc.

we bcli.ve Japa. should awoid any direct seculity role P€ni.sula, but should ihcreas€ gla.lual]y iij i.dilecr assistance to the ROK's efiortE to mahtain a milita'y parity vith North Korea.

--

on the Korcan

w€ v.nr Jnpan to conri,ue ra increa3e grailualty its developacn! assistance io Souih Kolea, ard i!.r€asingly !o open ils markcts !o south Korean e*ports.

--

-- we wao! Japan to apploach its expansion of !!ade rilh Noltl (o!.. lyith caution, particularly as regalds ils stralegic .ndpo1i|icalimp2.t,As.orcernsirsIoliri.ali Japan !o bc scnsitiv€ both !o seoulrs concern in th& :egafd and to ihe !eshaining elfect vhich Japd's hade may have or Nolth Wc van! Japan to !eskict any dewelopment aseistance to Korc: to a minimal lcwel util North Korea substantially

--

Norih tuins avay ilom ils militdry oltion.

-- w. vant Japan to give maximum political suppolt io a governhent in Seoul that offer3 a reasonable promise oI lo.gerierm stnbility in souih xorca and rhar seeks a more staue relntionship Nith North Korea.

-- \{c v.nt Japan io prce its expanding r.larions rith Nolth (or.a nr a vtry thit will h.lp pleEerwe a diplomaric ard stlalegic balan.c b(1w.cn c h,o xor.a3, and wilt rcinlorce movement tovud a n,orc slaLl. rcltrtionship berveen the reo (.!eas.

E,

--

1vr

\rii

.l3pf,n to

.on'ibutc onc-third ol the tolal

as3isiancc n) Ind.china, i'rcreasing quickly to a level ol at least 5ilo0 n,illion innunlly, and to cncourage the ..J..o? emuPb. aid

-- w. lvant Jalrn to f,pproach ils e*?ansion oI trade and viih North vi.tnad viih caution, particularly as regards

its stra!c*ic

and political iftDact.

io giw. maximum political suppo.t Lo governm.nt in s3i*on rhat orfers a .casonablc p.omise of lo.g€r-t.!m slability in Souih Vieinam.

--

Wc wan| Japan

--

We

kani Japan to pace ils er?anding lelatione *ith a marne! conducive tovards a diplomatic

NolthVictn.m n

and staatceic balance betveen the two viet.amr, ud that wiII lcinforcc mowemcrl iosard a hote sta6le rerationship betwccn ihc two Vi.tnahs.

II.

Bilaieral Obicqtirc

Given thc pri,rary cmphasis atlaching io ou! fiu]rllaielal objectiweE, our bi1ltcral ol,jectives shoulil be pu!sued in a %y thai wiU bc su?portivc of o!! hultilateral obiectiweE.

A.

U.S. -Japan Potitical Relation.hip

-- The U.S. and Japan shoutil pre5erve a viable alliance nerveen thcmscrves, adju3!ine rhe allian.e rerationship tovard greaicr equality and reciprocity.

-- Wc wani Japan to awoid any allianc€ sith the PRC or the Soviet Union, o! hy rclationship vith lhose powe!5 vhich vould link hpanrs nxlustrial abd icchnological pover ro cbi.a,s ha.povc! or rrrc sovi.r union,s milftnry shcngrh.

s.cr.

--

v

we vnnt to rctain th. Mutual sccuriiy Tlcrty in an acccpt.)lc mod., !ccognizing ihat it ray be subi€ct to .lEnge.

5

-- \rd krni Jrprn to continuc to imp.ove gradul11y its conv.niioD.tl n)ilitJry .rpabilily lor the delense of its telritory, !,ui i. rv.nl rny .egion:l security rolc or acquisition ol a nucl.sr w.apons .apability, -- r\r. $ant to mrnfain ell mil:ta.y bf,s.s h Jtrp.n. c. Trad.

ana Iivcsrmcnt

Th. U.S. and Japln 5hould continre to reduce talift and non-laliIl barricrs as rons a3 ihcle ie a substantial U.s. deficia in our bilatelat tlade Biih Japan.

--

The U.S.

will .ontinue to try to

expand

i!3 expo s to

we vant Japan to .onrinue ro ritreratize irvestmenr resriicrions -- hor6 forftar and inforrat -- parti.ulally as regards dilect investment.

---

Japan anil the

D. Normalization

U.S. shoutd in.rease cooperation in

of Rel

-- The U. S. and Japan sho.ld .ontinue to rortulize !â&#x201A;Źlations wiih lhe PRc in a vay thar witl not result in ilestructiwe compeiition lor resour.es, halkets, o!

Politicar iniuâ&#x201A;Źn.e in rhe PRc.